How to Rent Refinanced Primery Residence if Loan <1yr

5 Replies

I’ve owned my primary residence for almost three years now and I refinanced it last July.

Recently I’ve gone under contract with a new house hack opportunity I’d be living in but I failed to realize that I might not be able to rent out my current residence because the refinanced mortgage is only eight months old.

Is there a way I can still make it a rental? Do I need to refinance? Is there a title company that can help?

Appreciate all the feedback in advance!

Brad

If there is a 1 year owner occupied requirement (almost always on new loans, don’t know if it’s as common in REFIs but there will be a real obvious page you signed saying I plan to live here.) Probably the cheapest, certainly the easiest plan would just move slow. Take a month or two to close on the new property. A month to fix everything up nice on the old property And have it available starting in July. 

@Bill Brandt appreciate the info. I’m closing on the new home on 4/1 and would hate to have three-four months vacancy, since that would cost more than a refinance.

Do you know if there is a potential way to refinance into something legally allowing a rental rather than wait through four additional mortgages?

Originally posted by @Brad Jacobson :

@Joe Villeneuve the mortgage provider confirmed the refinance needed to be at least a year old before I could leave as the owner-occupant. I’d prefer not to sell it but holding a few months or mortgage payments would be rough on our savings

 You can fall in love with the house you live in, but never the houses you rent out.  Those houses are just the places your money goes through making a profit.  The face value of your money is equal to the same thing inside your rental (equity) as it is outside your rental.  When you sell a rental, or flip a house in general, all you're doing is changing the location of your money...and hopefully your money brings along some new found friends (profit/cash flow) when it moves to the next location.

Now the face value inside and out might be the same, but the true value is not.  The true value of you money outside of the house is equal to at least 5 times what it is inside that house...and this is any house...your own home or a rental.

Once you commit to your house being converted into a rental, you must forget it was ever your house (I didn't way that part would be easy), and start treating it for what it is now...a rental.

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