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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: missmoneymachine on January 22, 2018, 07:49:51 PM

Title: Renting out after owning for one year?
Post by: missmoneymachine 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? 

Title: Re: Renting out after owning for one year?
Post by: waltworks 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

Title: Re: Renting out after owning for one year?
Post by: cchrissyy on January 23, 2018, 12:27:21 AM

+1 to waltworks

Title: Re: Renting out after owning for one year?
Post by: srad 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.

Title: Re: Renting out after owning for one year?
Post by: Rich on Money 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?

Title: Re: Renting out after owning for one year?
Post by: Linea_Norway 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?

Title: Re: Renting out after owning for one year?
Post by: chasesfish 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.

Title: Re: Renting out after owning for one year?
Post by: missmoneymachine 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.