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Thelawman2, Lawyer
Category: Real Estate Law
Satisfied Customers: 1612
Experience:  Attorney-at-Law
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I am trying to obtain for the purchase of a home. I am

Customer Question

I am trying to obtain for the purchase of a home. I am currently working abroad but my wife and children are living in the US. The home that we want to buy will be our only residence. The underwriters are questioning that this is my primary residence because I work abroad and order to take advantage of the Foriegn Workers Income Exclusion I must be out of the US 330 days/year. My wife and I are both on the application and my family will live in the home. IRS, DMV, bills will all show the new home as my residence. Why are the underwriters having a hard time recognising that this is my primary residence?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Florida
JA: Has any paperwork been filed?
Customer: We have submitted all necessary documents for the loan application
JA: Anything else you want the lawyer to know before I connect you?
Customer: I am just curious why this is a problem.
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Thelawman2 replied 3 months ago.

Hello, my name is ***** ***** I will be helping you today.

The issue that you are probably running into is that mortgage underwriters evaluate primary, second, and investment properties differently. Primary residences are given the best interest rate for the least down payment and generally require:

  • The owner lives in the property for a majority of the year.
  • The property is in a location that make sense in relation to their employment and contains characteristics that suits the needs of their immediate family.
  • The borrower acknowledges (on several loan documents) they intend to occupy the property. Note: “intend” does not mean, “oops…I financed this believing I would live here and now I’ve decided to buy another property near by that I’ll occupy”. Typically the lender wants the buyer to occupy the property within 30 days of closing

A second home is next in terms of getting a good interest rate. Generally, it is a home lived in at least some of the year by the family.

Then there is an investment property that the borrower does not occupy and gets the worst interest rate.

The issue probably is that the underwriter is concerned that the property location does not make sense in relation to your employment, and therefore, they are concerned that this is not actually your primary residence.

Customer: replied 3 months ago.
My wife who is also on the application will be living in the house 365/year along with my children. I am not a citizen of another country, I do not own any other property, I will use that address for IRS, DMV, passport and etc. How could it not be my primary residence?
Expert:  Thelawman2 replied 3 months ago.

If you are the primary income earner, it is that the underwriters are probably concerned that your employment is located so far from your home. If you are living outside the country for most of the year, then just for you, it might not be considered your primary residence because you are not living there for a majority of the year. To the underwriters, this probably means to them that you may be living somewhere else as your primary residence and that the chances of default for this particular home is higher.