I'm in the process of looking at buying a home that I would live in about half of the year and rent out the rest of the time as a short term rental. From talking to some lenders I may be either able to use a primary home loan or a second home loan (with 10% down). I'm wondering if generally for any loan where you are getting it as a house to live in, is it usually the case that after one year you can convert it to a full time rental? I may end up buying a different home after one year to live in full time so that's why I'm wondering.
Rental Property Investor · Toledo, OH · Member since 2018 · 309 posts · 264 votes
5y
This is something you'd have to talk to your lender about. On my closing papers, I have to live in my property for 1 year since it's and owner occupied loan, however, I'm still able to rent out the rooms as long as I still live here, which is what I'll be doing. Once a full year passes after closing, I can move out and make it 100% rental and go get another owner occupied loan. If you only lived in your place for 6 months then turned it into a STR and you and the lender agreed you'd live there a year, you'd be committing fraud, so definitely talk to your lender about your intentions and see if they're able to work with you on them.
Ok thanks I can check with lenders, I'm telling them upfront that I'm only going to live there part time and rent it out part time right from the start, so from even the first month of owning it it will be able to be a short term rental as I'm going to make sure the loan type I get allows this (like a second home loan).