can you mortgage a house and rent it out

Best answer

It possiblefor homeowners of renting out a mortgaged home. You檒l need to check the fine print of your lending agreement to find out whether you檙e allowed to make your first home a rental property. Some lenders have clauses against rental properties and others have stipulations that require you to wait a certain period.

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Conventional loans that are guaranteed by Fannie Mae or Freddie Mac will require you to live in the house for one year or more before you can rent it out. Lenders may also have other restrictions on the use of the property, so it better to call them first before renting out your home. Can I Rent Out My House Without Telling My Mortgage Lender?

For example, owner-occupants purchasing their homes with FHA-insured mortgages are expected to occupy them, not rent them out. Fannie Mae and Freddie Mac also prohibit their residential mortgage borrowers from renting out their homes during their first year of occupancy.

If you have an owner-occupant mortgage and decide you want to rent out your home, it may be an option. You檒l need to contact your mortgage lender to discuss the situation. Some mortgage lenders will permit you to rent out your home with your existing rate and terms.

Your lender and your homeowner’s association (HOA) may both balk at the move, and you檒l have to crunch some numbers to see if it makes financial sense. Before renting out your mortgaged property, you’ll need to check all lender and Homeowner’s Association rules and regulations.