Want to get some advice as to how to handle this. I am a lender and have a realtor client who is one of my better referral partners and a friend. He’s called me for 2 mortgages in the past, one of which I just closed in March as a primary home. However, he reached out to me interested in purchasing another rehab property in the same town. I told him he’d likely have to do it as an investment property, which requires higher downpayments and worse rates. He spoke to another lender who would do only 5% down. I was looking for some advice as far as how to handle this. Do I just tell him to do that? Do I tell him he’s taking a risk doing 2 owner occupied properties in one year? Do I just write it up as a primary home, even though I know something is wrong? Definitely not looking to do the last one, but I included it because it is sitll theoretically an option. Thank you in advance for any input.
TL;DR – Mortgage lender here. Realtor client wants to purchase another primary residence after 6 months without selling the original to flip. Looking for owner occupied loan when property is clearly an investment. Not sure how to handle the situation.