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Regular Contributor
amaurym
Posts: 134
Registered: ‎04-02-2012
0

Homestead and renting the house.

Will renting my first home(homestead) disqualify me.

 

I will like to rent my home and keep leaving in a apartment.

 

I'm want to rent it to a friend so most everything such my bills, auto registration, etc will still go to that address.

 

I'm schedule to close on the house this december.

Current Score: EQ 694(Fako), EX 676(Fako),TU 729
Goal Score: 750 across the board
Regular Contributor
amaurym
Posts: 134
Registered: ‎04-02-2012
0

Re: Homestead and renting the house.

Bump
Current Score: EQ 694(Fako), EX 676(Fako),TU 729
Goal Score: 750 across the board
Regular Contributor
amaurym
Posts: 134
Registered: ‎04-02-2012
0

Re: Homestead and renting the house.

Forgot to mention, I'm in Texas
Current Score: EQ 694(Fako), EX 676(Fako),TU 729
Goal Score: 750 across the board
Community Leader
Senior Contributor
StartingOver10
Posts: 4,203
Registered: ‎03-06-2010
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Re: Homestead and renting the house.


amaurym wrote:
Forgot to mention, I'm in Texas

What type of loan are you getting? If you are looking at an FHA loan than FHA has a requirement that you move into the house and live there within 60 days of closing. They do not (IIRC) have a specified period of time that you have to live there.

I am assuming you are purchasing the home saying that you are going to use it as a primary residence. If you don't live in it initially as your primary residence at all, it is considered loan fraud. Its possible I didn't understand exactly what you meant by 'disqualify you'. I assumed you meant to ask if it was OK to rent out a property right from the beginning rather than moving into it. The loan criteria for a primary residence and an investment property are different.

Regular Contributor
amaurym
Posts: 134
Registered: ‎04-02-2012
0

Re: Homestead and renting the house.

Let me start by giving a back story.

We applied for a FHA bond loan for a new construction about 6 months ago n. Now that we are close to closing things have changed, my wife is about to give birth to our first child so I'm not completely sure I can make it now to make all the mortgage with just my income. As she won't be working for at least a year to take care of our first child.

So we were thinking to rent it to a friend for that first year.

This will be the only home we own, so this is not an investment properly but our primary residence. We will eventually move to the home in a year.

My other option will be to rent a room to a friend but then again I will be worried to have someone else leaving in the same roof.

Any input is appreciated as I don't want to do something wrong here.

Thank you

Current Score: EQ 694(Fako), EX 676(Fako),TU 729
Goal Score: 750 across the board
Community Leader
Senior Contributor
StartingOver10
Posts: 4,203
Registered: ‎03-06-2010
0

Re: Homestead and renting the house.

I understand where you are coming from; but once you sign the mortgage you agree to move into the house in accordance with the terms of the mortgage. It is a requirement to actually move into the house with an FHA loan. Also, with the bond programs I have seen, they also require you to occupy the residence. In fact, under those programs you generally can not rent the property at all as they are income restricted programs available to first time homebuyers only.

 

In order to comply, you would be far better off to rent out a room for additional income or have your wife continue to work after her maternity leave. If you ask for a copy of the mortgage docs from your lender you will see where it is required for you to occupy within 60 days of closing for the FHA loan. The bond program has an addendum to the mortgage - ask them for a copy. If the bond program in Texas is anything like the one here - you can't rent the property.

 


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