2nd Home vs Investment Property??

6 Replies

Hello!

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?

Thank you!

@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.

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.