That is totally acceptable.. so long as you also live in the property.. it's illegal to purchase a home using FHA financing where you have to disclose several times that you intend to occupy the home as your primary residence.. I hope this helps.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.comJun 5th 2012
As long as you move into the residence and make it your primary residence, there is nothing in the rules that says you cannot rent out the rooms. The only time it would be considered fraud is if you did not move in and rented it out instead. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950Jun 5th 2012
Regarding your questions about rental income. You are wise to report it. It is income, and if you don't report it and get caught, the fines, penalties and extra interest could be substantial. Yes a new lender will ask questions, and no the answer "I rented rooms out" will not cause you problems. Regarding two family homes, I have done several loans this year on 4-plexes where the buyer moves into one of the units and the three tenants rent cover all of the expenses, meaning the buyer is essentially living rent free. I say go for it, but agree with Larry, that renting to family can sometimes be a wrong decision. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950Jun 5th 2012
It is legal and you shouldn't have any problems moving forward with a new loan in a couple of years. You used to be able to use boarder income that was reported on your taxes. I would have to look into that to see if that is still the case. If you have any other questions give me a call 201-962-3555. All the best, MichelleJun 5th 2012
Didn't find the answer you wanted? Ask one of your own.