How long to live in your first home before renting it?

[Thomas Sehon]

Any thoughts on how long to live in your first home before refinancing it so it can cash flow as a rental?

[E.J. McCaffrey]

As long as you’ve lived in the home for at least 12 months, which is usually required for a conventional mortgage, there’s no set waiting period to refinance. However, there are a few important things to keep in mind.

If you’re planning to refinance the home as a rental or investment property, the rules are usually a bit tougher than if you’re refinancing your main home. Lenders often ask for a higher credit score, a lower debt-to-income ratio, and more equity in the property.

No matter how you plan to refinance, the lender will moslikely want you to have a certain amount of equity in the home. Additionally, you will also need to meet the lender’s requirements for your credit score and debt-to-income ratio.