Mortgage on rental property

[Macy Grant]

I would like to purchase rental property.  I’ve applied for a mortgage and the question came up if it will be my primary residence, so I answered “yes”.  After I do a light rehab (1-2 months) I plan to rent it out.

Questions: What are the ramifications to my mortgage? Someone suggested once I rent it out create an LLC transfer the title and notify the mortgage company? Will they increase my interest rate? Etc..

Any advise will be appreciated.

[Wayne Brooks]

No.  If you get an occupied loan you are required to live in it for at least a year.