Why it is two mortgage loan numbers for the same property?

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On my credit report appear that I have one account number for my bank loan conventional mortgage and one loan number for collateral for same property. What is that and this is right?

I know that if you won’t be living in a newly bought house, you should tell them that when applying for a loan. Here is my situation: Me and a co-buyer are buying a house that I don’t plan on living in, but my co-buyer does. We applied for a conventional loan but didn’t get approved, because the lenders said that since I live in another city, and my income is the higher one, they could only give me an FHA or investor’s loan (which has a higher interest rate and requires 25-30% down).
However, at Bank of America, they approved our conventional loan. My question is, is it legal? I mean other lenders wouldn’t approve it because the house won’t be my primary residence. So I’m wondering if it is a legal thing or is it just that lenders don’t LIKE to approve people like me. If BoA does it assuming that I’m going to live there, then I don’t wanna be legally responsible.
we told Bank of A that I’m not planning on living in the new house, but they still approved us on the conventional loan. (We are first-time home buyers)
OK my question is, is B of A SUPPOSED to give us a conventional loan in this situation?

  1. Reply
    February 10, 2011 at 12:14 am

    do you have 2 deeds of trust on the property? if so then the accounts are separate. The only other reason would be if the loan was transferred to another provider say countrywide to bank of america and c/w never showed the transfer. Since they are now one in the same that is an easy fix

  2. Reply
    February 10, 2011 at 12:22 am

    To be 100% honest it is in fact fraud to tell the lender you intend to live in the house, but have no intention of doing so. At closing you will be required to sign an affidavit of this intent on your part. There is that word “intent” … a home buyer can intend to live in the house at closing but change their mind an hour later and there is nothing fraudulent about it.

    Still I agree with the bank that it is in your best interest to go the FHA route, than commit fraud as the rate will likely be very similar. Honesty is the best policy

  3. Reply
    February 10, 2011 at 1:12 am

    It is not legal what you are presenting. It is mortgage fraud. If the district attorney of your county wished to press charges against you if they found out, and it’s very easy to find out, they can. In San Diego County, you’ll get three years in state prison for mortgage fraud and mortgage fraud is exactly what you’re proposing. Prior to your jail term, Bank of America will call your loan due and payable immediately because of your fraudulent application. And you won’t be able to pay it, or refinance it, so you may lose the property.

    Take the investor loan. Yes, the down payment will be 25 – 30%. But you won’t risk all of the above.

  4. Reply
    February 10, 2011 at 2:05 am

    I don’t think they will let you by with it. You may be pre-approved now, but I know like when we did all the paper work to finalize our loan it asks questions about all that stuff, so if you lie on it it’s fraud.

  5. Reply
    February 10, 2011 at 2:13 am

    This would then be considered an investment property and yes you would need to let the loan company know that. If you don’t that is mortgage fraud and you could go directly to jail. And if they knowingly gave you a mortgage for property that you didn’t plan on living in, then they too have committed mortgage fraud.

  6. Reply
    February 10, 2011 at 2:48 am

    To all the other posters: Reread the question. She clearly states that she DISCLOSED the fact that she is not going to live in the home but the co-borrower WILL therefore making this a primary residence with a non occupying co-borrower. Conventional guidelines do allow for non-occupant co-borrowers but with more stringent guidelines. Here are a couple

    * Maximum LTV is 95%.
    * For LTV’s greater than 80%, the occupant borrower must make the first 5% of the down payment from his own funds.

    So yes, B of A can approve you but you may still run into problems with the Private Mortgage Insurance company.

    What I don’t understand is why you wan to go with a conventional loan.
    The down payment required is higher, the monthly mortgage insurance is a lot higher and you have to pass the private mortgage insurance underwriting in addition to passing the lenders underwriting.
    The guidelines for both the loan and the PMI are a lot more restrictive than FHA.

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