11-27-2012 05:02 AM
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.
11-28-2012 08:16 AM
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.
11-28-2012 06:23 PM
11-28-2012 07:17 PM
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.