Mortgage home loan answers
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What can a mortgage company do if I am supposed to be living in a home and I decide to rent it out?
Posted on October 2nd, 2010 3 comments
jaysinrd asked:
I am buying a home and its with an FHA loan. The monthly payments will be easy for me to pay but I think I can rent it out for way more then the mortgage payments. So I am thinking about renting it but under FHA loans its supposed to be owner occupied. Do they come and check up on you, will they ever even know or find out? What really can they do if I am making all the monthly payments?
CatherineRenting & Real Estate Buying A Home, Fha Loan, Fha Loans, Monthly Payments, Mortgage Company, Mortgage Payments, Rent, Renting3 responses to “What can a mortgage company do if I am supposed to be living in a home and I decide to rent it out?”
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You have to take the mortgage out in “good faith” and they will know if you change your address, and the insurance must be changed for a rental property. So, basically for the first two years you need to live in the house.
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Common Sense October 5th, 2010 at 00:04
call the loan as you’ve broken the loan covenants. Do this at your peril.
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Landlord October 6th, 2010 at 15:24
They will call the loan due. Possibly file fraud charges.
The IRS will inform them that you do not reside there, that another tax payer is.
The IRS is going to be looking for their income tax too.
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MoneyMonkey October 2nd, 2010 at 20:05