My loan broker says he can’t complete our mortgage loan as a 2nd home loan is this normal?

Deal Score0

We are putting 20% down on a secondary home in Austin Texas. The loan is in my fiance’s name she has 0 DTI a credit score in the 730’s and an income of 60k plus for the past three years and has been with the same employer for 7 years. Now at the last minute when we’re supposed to be closing the broker is pushing towards an investment mortgage instead of a 2nd home mortgage. We’re not sure what to do because we love the house but don’t want the higher rates of the investor mortgage. Any help would be appreciated. thanks
Apparently, an investment mortgage is for people who are buying the property as an investment as opposed to a dwelling they intend to occupy as their primary or secondary (vacation) residence. An investment mortgage is more expensive than a 2nd home mortgage.
To be clear we have an inexpensive rental in NYC where we live but are buying the second home in Austin to vacation near my fiancées family and we plan to move there eventually.

3 Comments
  1. Reply
    Wreck
    May 14, 2011 at 12:27 am

    Could you add details and explain
    Investment Mortgage?
    I googled it and can’t find it. Never heard of this before.
    Is he making a nice commission by selling you this?
    What company are you dealing with?
    Don’t get scammed into anything

  2. Reply
    SmartA$$
    May 14, 2011 at 1:16 am

    The loan broker is just trying to dupe you into a higher interest mortgage so he can get a bigger commission. Make it clear to him that if he can’t complete the loan on the terms that you were pre-approved for, then he won’t get ANY commission at all.

    Its not too late to shop around for a new loan officer either.

  3. Reply
    the kid
    May 14, 2011 at 1:56 am

    “we love the house but don’t want the higher rates of the investor mortgage” – Of course you don’t. That doesn’t change the fact that unless you plan on residing in both homes for parts of the year, it’s NOT a second home. I am assuming you want to buy a new house, move into it, and rent the other one, right?

    Leave a reply

    Register New Account
    Reset Password