Anyone a real estate agent here? Or knowledgeable about it need help OT

[serenity72]

Just wondering can you rent a house from someone if they still owe a mortgage on that house or do they have to own the house before they rent it out to you. They wouldnt be living there, just we would. TY

[Anonymous]

I'm not a real estate agent, however my aunt/ uncle have several rent houses. They have mortgages on a good deal of them. They rent them out. Not sure if any special paperwork has to be filled out or not. When you apply for a mortgage, most lenders ask if it is for  primary residence, vacation home, investment property, etc. I'd assume this is where the homebuyer would notify the lender that they do not intend to live in the home.

[Anonymous]

Any owner of real estate can lease or rent the property to whomever they want even if they have a mortgage. Otherwise, most renters would be homeless as very few landlords own their property free and clear.

Hope this helps.

Missy

[George2037]

They can have a mortgage on it.  When they ask if it's Primary, Vacation, or Investment it due to the terms of the loan and flexability.

A primary Home can get up to 100% financing, or qualify for special programs (FHA).  A vacation home is seen as a higher risk and will be hard to finance 100%, knowing if you have a mortgage on your primary you will pay that before your vacation also most will require 25% or more down.  Investment properties can be a little tricky, if it's for a rental some banks will allow you to add 6 months of the rental income to your Gross helping you to qualify for the loan, but on the other hand most will require 25-30% down paymenat.