Author Topic: Renting out after owning for one year?  (Read 713 times)

missmoneymachine

  • 5 O'Clock Shadow
  • *
  • Posts: 36
Renting out after owning for one year?
« on: January 22, 2018, 07:49:51 PM »
I bought a second house (first house rented out) last spring.  I started dating someone soon after and we are currently in the talks of moving in together (me going to his house) in the coming months.  Is it ok for me to rent my current house out?  Not sure how the lender would view it seeing as I already have one rental.  Is there a chance for them to think I am committing mortgage fraud? 

waltworks

  • Magnum Stache
  • ******
  • Posts: 2790
Re: Renting out after owning for one year?
« Reply #1 on: January 22, 2018, 08:26:14 PM »
You're fine. You didn't mislead the lender about your intentions, and there is zero chance that they will hunt you down (or even be aware of the situation).

-W

cchrissyy

  • Pencil Stache
  • ****
  • Posts: 642
  • Location: SF Bay Area
Re: Renting out after owning for one year?
« Reply #2 on: January 23, 2018, 12:27:21 AM »
+1 to waltworks

srad

  • 5 O'Clock Shadow
  • *
  • Posts: 69
Re: Renting out after owning for one year?
« Reply #3 on: January 23, 2018, 10:10:19 AM »
I work in the mortgage industry (and also have lived in then rented out my homes), you are fine.   Life happens and people move.

Rich on Money

  • 5 O'Clock Shadow
  • *
  • Posts: 23
  • Location: Seoul, South Korea
  • I'm a blogger and real estate investor.
    • Rich on Money
Re: Renting out after owning for one year?
« Reply #4 on: January 25, 2018, 04:57:47 AM »
Lender won't know and doesn't care.   They just want to get paid.

That being said, does it make financial sense for you to rent it out vs. selling it.  What was your purchase price, mortgage payment, and how much will it rent for?

Linda_Norway

  • Magnum Stache
  • ******
  • Posts: 3363
Re: Renting out after owning for one year?
« Reply #5 on: January 25, 2018, 05:50:22 AM »
If you start living in a house owned by someone else, try to find some way to contribute to the value of the house. There are many examples of couples where one person owns the house and the other one pays for food and other bills. 10 years later they break up. The house has gone up in value with 30%. This normally goes all to the owner of the house, not to the person paying for the food. Maybe you would like to buy yourself in to owning 50% of the house?

chasesfish

  • Handlebar Stache
  • *****
  • Posts: 2435
  • Age: 36
  • Location: Texas
    • Years in the making, I created a journal!
Re: Renting out after owning for one year?
« Reply #6 on: January 25, 2018, 06:07:00 AM »
Lender won't know, doesn't care as long as you pay.

If you were to not pay and you moved out really quickly and subsequently defaulted, they could come after you saying you misrepresented the deal (bank fraud).  The preface to a bank fraud cause with lending is non-payment.


missmoneymachine

  • 5 O'Clock Shadow
  • *
  • Posts: 36
Re: Renting out after owning for one year?
« Reply #7 on: January 27, 2018, 12:48:01 PM »
I bought the house for $151,000, my monthly payment is $925, and Zillow estimates that rent would go for $1250 per month.