How long do you have to live in Primary residence before renting?

How long do you have to live in Primary residence before renting?

Member since 2022 · 24 posts · 6 votes

 I want to rent my home in about 2-3 months, move 30 miles closer to family. 

I will be keeping part of the home for my personal belongings. garage and RV storage. ( I started another thread about building adu so I could be there part time in the future)

I currently have a primary residence loan funded by fannie mae. 

I refi in Nov 2020. I have lived in the home 4 years.  I am in the middle of a home equity loan, but need to know if there are any reprocussions. I don't want to be accused of mortgage fraud. 

Should I stop the home equity loan, or at least let them know the situation? Lender is US Bank so I am dealing with a lot of robots there that don't really have answers. . 

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  • Joe HomsBusiness Member
    Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
    4y

    @Jeffrey Suarez the rule of thumb is one year.  Have you thought about selling it since you can avoid up to $250K per person and $500K for married couples in capital gains?

    Good Investing...

  • Investor · Tempe, AZ · Member since 2018 · 1k+ posts · 731 votes
    4y

    One year.  It sounds like you're over that threshold.  Before asking US Bank directly, I'd research on Google to see if they have documentation.  That way you're not raising any unnecessary red flags with them.

    To avoid capital gains, if you decide to sell, you'll need to live in the home as primary for 2 of the last 5 years.  That's always subject to change tho..

  • Member since 2022 · 24 posts · 6 votes
    4y
    Quote from @Kenny Dahill:

    One year.  It sounds like you're over that threshold.  Before asking US Bank directly, I'd research on Google to see if they have documentation.  That way you're not raising any unnecessary red flags with them.

    To avoid capital gains, if you decide to sell, you'll need to live in the home as primary for 2 of the last 5 years.  That's always subject to change tho..

    I have not asked them yet. 
    Looks like I meet the 12 month standard, but what about the home equity loan?

    I don't want to sell. This is my forever home. 

     
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