Financing in 94506>Question Details

Gigi, Home Buyer in Danville, CA

Home equity line of credit

Asked by Gigi, Danville, CA Tue Oct 6, 2009

I used to live in this house but now it's a rental. So I have a home equity line of credit open on my rental property. Do I have to tell tthe bank hat I am renting out the house? And what will bank do to me?

Will any expert give me an advice? Thank you in advance. I already post my question this morning and got two answers. But I like to make my question more clear so I repost it again.

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Steve is right. It's similar to buying a home as your principal residence and later making it a rental. You don't have to tell the lender.
0 votes Thank Flag Link Wed Oct 7, 2009
You will have to tell the lender that you have a loan on the property. It's going to be on the credit report and they will ask about the property. The debts from the loans will be used to calculate against your income on qualifying for the new loan. The rest of the info was explained to Gigi in a seperate email.
1 vote Thank Flag Link Wed Oct 7, 2009
Hi Gigi,

You DO NOT have to tell the bank you are renting the property.

Best, Steve
Realtor® / Mortgage Broker / Certified Mortgage Planning Specialist®
1 vote Thank Flag Link Tue Oct 6, 2009
Gigi,

There is nothing wrong with making your primary home to a rental/investment property. You have no obligation to tell the bank and so long as you make your mortgage payment on time and carry a hazard insurance on your property, your lender most likely have no issue to talk to you about.

Let us know if we answered your questions. Best of luck!
0 votes Thank Flag Link Mon Nov 30, 2009
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