First House

9 Replies

hello everyone, not sure if this is the right forum to post this question, but, i am looking into buying my first investment, as a rental property. Is there any laws that state i have to live in this residence for x amount of time before renting it out? Ive heard people tell me a year before anything can be done with the property. I live in texas if that narrows it down..

Hi @Chris Turpin . I've never heard of any such law and am pretty sure there aren't any. People buy and hold (ie buy and lease out) all the time. There are 'seasoning' laws which require you own a property for a certain amount of time (like 6 months) before flipping it. But I've not heard of anything for just renting out a property.

@Chris Turpin , I believe it generally only affects people buying the house via FHA loan. So if you are trying to flip a house to someone using an FHA loan, you will have to have had your name on the title for more than 90 days. Some other lenders might have their own restrictions along the same front. Without those restrictions you could do simultaneous close and technically only own it for a minute or so.

I've never heard of such a law but I did her about a mortgage clause that would require you to occupy a property for a year before you can rent it out. That is most likely what everybody was talking about. 

Originally posted by @Jake Recz :

I've never heard of such a law but I did her about a mortgage clause that would require you to occupy a property for a year before you can rent it out. That is most likely what everybody was talking about. 

 Thats what i heard mabee it just differs beetween mortgage companies

Originally posted by @Michael Le :

@Chris Turpin, I believe it generally only affects people buying the house via FHA loan. So if you are trying to flip a house to someone using an FHA loan, you will have to have had your name on the title for more than 90 days. Some other lenders might have their own restrictions along the same front. Without those restrictions you could do simultaneous close and technically only own it for a minute or so.

 Michael what jake is saying is what i was referring to. Is that mandatory with every property... sorry for all the newbie questions im a first time investor so im trying to learn everything i can

@Chris Turpin , Jake is correct. If you purchase a home as an owner occupy then the mortgage company will expect that you live there. I actually just refinanced my primary residence so I pulled out the documentation and it states that I shall agree to move into the house as my primary residence within 60 days of signing the document. And that I will stay in the house for a period of one year from the date I first move in.

Different lenders have different requirements. If you are using an FHA loan to purchase the house then they will only let you lease out the house if you're forced to move somewhere else.

Originally posted by @Michael Le :

@Chris Turpin, Jake is correct. If you purchase a home as an owner occupy then the mortgage company will expect that you live there. I actually just refinanced my primary residence so I pulled out the documentation and it states that I shall agree to move into the house as my primary residence within 60 days of signing the document. And that I will stay in the house for a period of one year from the date I first move in.

Different lenders have different requirements. If you are using an FHA loan to purchase the house then they will only let you lease out the house if you're forced to move somewhere else.

 Michael thank you for the info. You have been very helpful!