rent out right after buying house for primary residence

Member since 2021 · 8 posts · 2 votes

Say I meant to buy a house for my primary residence and told lender about it. The lender gives me a loan for conventional mortage with 20% down on primary residence (lower rate than when buying investment property) But something unexpected happens after closing date and I can't live in it. Then, can I just rent it out without any panelty? - differently used than my original intention (living there as primary residence)

Anything I should be wary of?

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
4y
As you put 20% down, it might differ, but talk to your loan officer. If you bought it and told them you were going to live in it and don't and rent it out, you could be committing mortgage fraud. Red flags will go up especially if it happened as soon as you closed and you didn't move in.
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Lien VuongBusiness Member
Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
4y
You really should occupy the property as it’s intention as your primary if that is the case. With that being said, life circumstances definitely do happen and you do have the ability to change that if the situation was fitting. Example: you buying a one bedroom condo for yourself but find out you and your spouse are expecting so you’ll need another bedroom. That’s the right scenario where the unit does not serve its original intended need.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
You typically sign a document stating you will occupy the property as your primary residence. However, it may not matter since you put 20% down and had a conventional loan. Contact your lender, explain the situation, and see what they say.
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