Financing in Milford>Question Details

Fairfieldtut…, Home Buyer in Bridgeport, CT

Hi, I got a CHFA loan in 2007 and am thinking of renting out the house and moving in with my wife in her home. Am I allowed to rent out the property?

Asked by Fairfieldtutor, Bridgeport, CT Fri Nov 2, 2012

My house is obviously worth less than when I bought it and figured I could save some by renting it for 5 to ten years hoping it recoups some value.

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4
Tara Zegarski-Stirk’s answer
Hello Fairfieldtutor,
Check out http://www.chfa.org/Homeownership/for%20Homebuyers/FirstTime…

I do not see anything on this website about renting. I only see about selling which in rare circumstances, CHFA mortgage loans may be subject to the Federal Recapture Tax at the time the property is sold. The tax might apply if a borrower sells his or her home within nine years of the purchase date, makes a profit on the sale and has an income that exceeds federal recapture tax limits at the time of the sale. I have also heard that you are not allowed to rent out a property with a CHFA loan however, I have also heard CHFA is being a little more empathetic with this because of the current conditions of the economy. I highly recommend that you either call your current lender or read through your mortgage documents from when you bought the house.

If you need any help with your rental, give me a call. Good luck to you!
Tara @ 203-650-3180
1 vote Thank Flag Link Fri Nov 2, 2012
Hello
The overall rule under the time and terms of your CHFA mortgage was that you must live in the property for two years. After that you should be ok with renting out your entire home. However, There is a recapture tax if you were to sell your property within the 7 years of purchase but in this case it will not apply. Also consider giving me a call or e mail. You may bbe able to save some money on refinancing to a lower rate and gain additional income with the rental.
Thank you
Bennett Streets
203 721 3767
Webster Bank
0 votes Thank Flag Link Fri Nov 2, 2012
Most CHFA loans have a clause that you have to live in the house
for a certain amount of years. Please check your mortgage
paperwork.
0 votes Thank Flag Link Fri Nov 2, 2012
Most mortgage companies do allow you to rent out your house. If there is a clause that says you can not it will be in your lien paperwork,
0 votes Thank Flag Link Fri Nov 2, 2012
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