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How long after a refinance can I rent out my current home?

I want to rent out my current home and purchase a new primary residence, how long do I have to live in my current home before I can rent it out? by MKunis from Winchester, Massachusetts. Mar 6th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Most lending programs require you to live in your property for at least 12 months before making it a rental. If however, your being transferred for a job or have to move closer to a sick relative, or you all of a sudden are expecting triplets and need more space, then the lender would make an exception to the 12 month rule.. If you have not refinanced yet, you could apply as an "Investor"... the rate would be slightly higher, and there are a few more restrictions, however you could rent the property out immediately... .. 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.com

Mar 6th 2013
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Charlie Sparks (CharlieSparks)
#8 ranked lender in New Mexico - 401 contributions

You would be wise to wait 12 months. However if there is an unforeseen life event like losing you job or death in the family you should be able to justify it. Otherwise you will most likely be required to refinance it again as an investment property.

Mar 6th 2013
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Kevin McGoff (kmcgoff)
#39 ranked lender in Massachusetts - 3 contributions

There is no real time limit that the agencies set, however, the underwriters in here will iike to see at least 6 months unless an opportunity takes place fo ryou that makes sense. It's all in the story.. It's also a matter of how well qualified you may be. Freddie Mac wants a 2 year rental history, FNMA doesn't, so you would need either a FNMA or FHA loan. Which type of loan did you take originaly? Conventional or FHA?

Mar 6th 2013
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

if you have a job transfer, or have new employment, in another state, or a lot of miles from your exisitng home, can be used as a factor.. linda

Mar 6th 2013
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Ray Lewis (RayLewis)
#0 ranked lender in Texas - 35 contributions

It would depend on the circumstance behind you wanting/needing to move. If there are no extenuating circumstances then you will need 12 months. However, you would still have a hard time getting approval to purchase another home if it's within 50 miles of your existing home. The underwriter/lender will most likely treat it as an investment property if it's not a much bigger home and worth much more. If you are moving out of the area, then it changes the entire ball game and you can definitely do it.

Mar 6th 2013
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Mary Chris Gallo (MaryChrisGallo)
#47 ranked lender in Minnesota - 116 contributions

When you refinanced your current home you likely acknowledged - on a number of forms - that your intent was to occupy it as your primary residence. That usually means for at least the following 12 months. I do believe that there is a "due on sale" clause in your residential mortgage that could be triggered if you don't fulfill that understanding. With the excess fraud that has taken place in the mortgage industry - many who have falsely financed or refinanced a home as primary when it was, in fact, an investment/rental - lenders have ratcheted up their monitoring of just such fraud. I would caution that you check this out with your lender before you find yourself in a real dilemma.

Mar 6th 2013
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Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

12 months is usually what they require, unless you have circumstances that require you to move.Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

Mar 6th 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

12 months unless you have a change of circumstances that would justify the move.

Mar 6th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

You would technically have to notify the bank once the occupancy changes. You signed documents at closing saying you were goingto occupy the home and notify the bank of that changes. Most people dont do so and as long as the loan doesnot default the bank never asks any questions. But you have a legal obligation to notiy the bank.

Mar 6th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

To be super safe, wait 12 months. If you change the property to a rental before that time, avoid red flags, such as a change to a rental hazard insurance policy, change in address for the monthly statement, etc.

Mar 6th 2013
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Chris Couchon (chrisc)
#33 ranked lender in Massachusetts - 11 contributions

I looks like plenty of lenders have already responded to your question, and all of them seem very accurate. However I am not sure where any of them are located? One is in Arizona. Randolph Savings Bank is in Randolph, Massachusetts, and has been since 1851. If you are still in need of a local community bank that knows the New England region please call or email me. My contact information is on my profile page. Sincerely, Chris Couchon..Randolph Savings Bank.. NMLS ID # 981029.. 781-437-6500

Mar 7th 2013
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