Mortgage question

[Lumberg]

IF you have a mortgage with terms based on the fact that you are using it as a primary residence, and a few years down the road you decide to move, and rent the place out, is that a breach of contract? What are the possible consequences?

Thanks

 

[vansmack2000]

Sounds like it maybe a breach, some loans say you have to live there for x years and have no roomies(or report all extra income), well how they hell would they ever find out?

 

[gonelifting]

Not sure of the legality of it but I know 20 people who have done that with ZERO problems. You will be 21. lol

 

[Lumberg]

hmmm..... not planning on it but nice to know the option is there.

 

[FreeballinDC]

I think it depends on the loan, check your terms.

My loan says I have to live in the house for 3 years, and I cannot rent it out within those three years. After that, I can do what I want.

With this particular loan, they don't want anybody to "flip" the house to make a quick buck. FHA wants to see settled 'hoods and gentrification with the 203K plan that I have.

 

[MattTheSkywalker]

It can be your primary residence whether you live there or not.

My "primary residence" is a hole in the earth waiting to be built. It's just a designation.

 

[solidg]

Make your payments on time and the mortgage company will not care. Also be sure to change your insurance from primary to rental.