I just purchased a condo and I bank financed it as a "second" home. What are the rules or limitations with renting it out? How soon can I rent it out after purchase?
Well... technically you're supposed to go back to the bank and tell them it is no longer a second home but it now an investment property.
What are the consequences if I don't?
@Christy Holt it isn't your primary residence, so the bank factored that into your interest rate. Usually a little lower for your primary residence. The bank isn't going to come to the property and peek in the window to see who lives there. It's nothing to worry about.
@Anthony Dooley Thank you!
I would look at your mortgage documents as they have clauses in there. I mean, technically, it is mortgage fraud if you obtained mortgage as a second property with the intent to rent it out instead of using it as you informed the bank. I know FHA and other primary mortgages have a 1 year stipulation for homeowner use and certain reasons you can be excluded from that requirement. However, I am unfamiliar with a second mortgage loan document and would discuss with you lender or review your mortgage documents thoroughly.
@Colleen McCann Thanks. I intent to stay there when I'm in town, but when I am not I would like to rent it out.