Credit Card Center Advertiser Disclosure†
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.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.