How long before you can give your home for rent?
Purchased a house 2 years ago. How long before I can give it out for rent. I heard 2 years but not sure. #realestate
I was a first time home buyer with FHA loan and threw it up for rent right away and lived with my parents (I was 22 at the time). As long as you make payments on time no one will come after you)
I’m not a lawyer but this is the way I understand it. Most loans require you to live in your principal residence within 60 days of the loan. You also sign that you intend to reside there. The issue then is not how long you stayed but rather if you lied on your mortgage application about your intent to live in the home. If you get a mortgage as your principal residence knowing you’ll be renting it out in three months that’s fraud. But if six months after a great new job just happens to come along two states away and you decide to rent, you’re fine. But as other posts say... if you make your payments on time the bank will virtually certainly never know one way or the other.
This ^
Thanks. This is a good response. Say if I want to move to an apartment in the same city (for whatever reasons), will I be committing mortgage fraud if I rent it? Is there some kind of threshold in terms of number of years as primary residence before it can be rented out legally?
Fha is usually one year, but check your paperwork just in case. If you're within the probationary period, you can fax them and request a written response to allow you to rent the property. This is only necessary if you want everything above board -i.e. Zero risk of mortgage fraud, and you're completely clear to legally rent to someone. But yeah. You can also just rent it on the DL. Pretty sure you can't work with property mgmt companies if you do that though.
1 to 2 years depending on your loan. As a hack you can rent rooms in your house anytime so as long as you keep a room as a primary you can rent on day 1. Bonus here is also that you can skip the rental laws and pick anyone you want.
Depends on what? This is a 30 yr fixed loan.
What your loan says, will either say you must occupy for 1 or 2 years before you can shift status and insurance to rental without impacting your interest rate. Again though you'll likely want to keep a room and rent the rest so you can choose your tenants.
OP: Make me feel better about committing mortgage fraud Blind: I gotchu!
I'm also in the same boat. Planning to buy investment property but would like to get primary residence mortgage. Will that be an issue if I start renting from first month. What are the odds of getting inspection from lender? Are there any workarounds?
Odds are extremely low, but keep in mind you're entering those agreements with the assumed intent of living there for at least a year. The penalty for being caught is pretty big -i.e. default and/or fines. Possibly jail. Super unlikely, but anything more than 0% was too high for me. Workarounds usually revolve around extenuating circumstances. These are usually outlined in the mortgage paperwork, but you can Google standard FHA examples. For me, it was relocating for work. But I also didn't intend to rent the house when I bought it. Lol
Is it because you have a special type of loan? I have not heard of something like this unless you take advantage of the first time buyer benefits.