Lender Requirements after loan is sold?

Question

I purchased a home a few years back as a second home, and I now would like to rent this home out full time. The lender we used at the time had specific requirements around second homes, mainly that it couldn't be rented out for more than 180 days, that it couldn't be under 3rd party property management, etc. The loan has since been sold multiple times, and I'm wondering if we are still tied to the original requirements we purchased the home under.

Anyone dealt with this before? Curious how lender requirements work once the loan is sold.

Aaron Gajewski · Answer

Thank you all for the help! I appreciate it. I'll go through and read the docs.

Alan Lacey · Answer

@Aaron Gajewski again despite the other well intentioned advice of this is a conventional loan, which based on terminology you used I think is a good bet. The occupancy terminology is in second home rider and if Fannie/Freddie loan it is the same verbiage for every lender. Given specific changes made to second home rider would think not a issue but call servicer. Also if loan is from last couple of years check the rider because I have found many loan officers are not aware of change (if that is whom you spoke to).

Matt Devincenzo · Answer

As mentioned above read what you signed...whoever has purchase your loan, also has these docs and will enforce them if they believe it harms their investment. But those could also have had time frames, like on an OO loan you sign that you will occupy the home for a minimum of 12 months. Does your loan have a similar provision, and now years later renting it our would be ok? You need to read the docs to find out...

Nathan Gesner · Answer

Your mortgage contract remains in place, even when it sells to another company. The only change is who you make payment to. Just read the document and see what's allowed. Still not sure? Contact the lender that currently holds the policy. If they say a particular change is acceptable, ask for it in writing.

Drew Sygit · Answer

@Aaron Gajewski READ YOUR MORTGAGE!

yes it's a 10+ pages, but it will tell you what you can do.

We can't read your mortgage docs, so we'd all be guessing and potentially giving you bad advice.

Of you can't find your mortgage docs, ask your current loan servicer to send you a copy.

Alan Lacey · Answer

@Aaron Gajewski it wasn’t the lender if it was a co for I g loan. It was Fannie/Freddie second home rider. They recently have updated verbiage on those. While that doesn’t change the document you signed. I find it had to imagine the services of loan holding you to prior standard or Fannie/Freddie presumably the owner of the loan to request servicer to do so.