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USDA/renting

My husband and I obtained a USDA loan in March (2 months ago) with every intention of living here for at least 1 year. There is potential that we may need to relocate for a job in the nextmonth or two. If we can prove that we did not know this position was going to open up and that we did not intend to leave before a year, can we rent our property out prior to having occupied the residence for a year? Also, if we can show that we do not intend to profit off of the rent, only cover the mortgage, would that help any? by Shelley-campbell7 from Eureka, California. May 30th 2015 Reply


Paula Richardson (prichardson@uamco.com)
#1129 ranked lender in California - 4 contributions

Hi Shelley,Sometime life happens and there are things you can not anticipate at the time you purchased your home.Yes, I would have all written documentation regarding the new job, new job location, letter explaining a change in jobs. If there is a reason the existing job/company is going out of business or pays less, your husband is getting a better position etc... Write it all down so the lender knows why.There are rules in the guidelines regarding relocating. To some lender a relocation means anything over a certain amount of miles. Call your Loan Officer and ask him/her to help you. This information should be easy for them to get for you.I am unable to give you the answer because I do not know the lender and their guildlines, and the underwriter.

May 31st 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

There are no USDA police that are looking at any sort of occupancy fraud. At the time of purchase, the rules talk about INTENT. Did you intend to occupy at closing? Did the job information come out of the blue afterward?? Sounds like you haze zero to worry about. For USDA loans in MN, WI, and SD, visit www.JoeMetzler.com/usda

Jun 1st 2015
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Jericho Cherry (Jerichocherry)
#56 ranked lender in Virginia - 1,107 contributions

With a good explanation and proper documentation you should be okay.

Jun 1st 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

typically, so long as the loan is being paid on time, it's not an issue.. but the rules for USDA is very clear... it must be a primary residence.. that being said, certain situations happen which are beyond your control.. if your husband is being transfers and you were not aware of this prior to you obtaining your USDA loan, then you should be ok.. it's possible the lender will ask you to document this.. but it should be a problem.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jun 1st 2015
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