Posted by John Corey on June 19, 2005 at 17:54:43:
There are two questions here.
Ignoring one of them…
A second home is something you elect to have on your tax return. It is
also something you elect when you are applying for a mortgage.
Be careful about misrepresenting the facts as some of the time this is a
criminal offense.
Even if the home is not on your credit report many loan applications
ask you to declare loans you have outstanding. Trying to hide one is
fraud and can complicate things down stream.
Better would be to show that you have income from home number 2.
Income minus 25% will be used to offset the mortgage. Once you are
over the threshold you are fine from the lender’s point of view.
John Corey
Chelsea Private Equity LLC