Updated over 6 years ago on . Most recent reply
House Hacking During My First Year in My Primary Residence
Hello All!
My wife and I recently purchased our very first home in North Carolina! Hurray! While it wasn't our initial intention, we realized that the 2700 SF home with a two bedroom basement was too much room for us right now and we decided that we would convert the basement into a rental of some sort (Vacation, Short Term, Long Term) until we grew into the space.
We are able to secure a loan for 3% down and had the seller pay the private mortgage insurance up front, so we felt like it was a big win because we kept a lot of the capital that we had saved up for a down payment in our pocket. However, when we sat down at the table with the real estate attorney to sign all of our papers, she informed us that the home had to be a primary residence for at least one year before we could rent it out.
Can we house hack during the first year of home ownership? If so, are there any steps that we need to take to make sure we have covered all of our bases (notify the lender, notify insurance agency, etc.)?