Can someone rent a home that they purchased with an FHA loan?
2010 February 3
If you purchase a home with an FHA loan (and you still owe on that loan) can you use it as an investment property? Furthermore, can you purchase other properties when you have an FHA loan? Can you live in another property other than the home you purchased with the FHA loan? What are the restrictions?
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Yes, yes, yes.
You can only have one FHA loan at a time. When you buy the property with an FHA loan it must be owner occupied. If for some unforseen reason you have to move, rent it out, and buy another place then that’s OK. If however, you buy the place stating to FHA that it will be owner occupied, but you have no intention of ever living there then that’s fraud. Fraud is a major No NO….
YES; to everything ; BUT you will need to change your insurance plan as you currently probably have Regular Homeowners Insurance ; NOT a Landlordlord type insurance ….
That MAY cause the lending institution holding your mortgage to raise your interest rate as I’m sure when you applied for the loan, you put dow that YOU were going to live there ….
just a couple of things you need to check out …