Senior Loan Originator
Top Flite Financial, Inc.
You can live there for a while first, but because of certain guidelines I would say it would depend on the type of loan that was taken out..such as a conventional loan or FHA. You may also need to talk to your tax person to see if it would harm you when filing your taxes for the following year. If you plan on buying another property and using that property as your primary residence the property would have to be at a higher amount than what you paid for on your current property. The lender will look at the loan to see if it is a tangible benefit based on your situation.If you have a conventional loan, there are restrictions on qualifying for a loan backed by Fannie/Freddie to purchase another primary residence. Unless you can document that the home you wish to rent out has at least 30% equity, you must document that you have at least 6 months' reserves for BOTH mortgages (principal, interest, taxes, insurance, HOA if applicable) in order to qualify for the new mortgage. Rental income from the property to be converted to invetsment cannot be used for income qualifying unless you can document 30% or more equity in the home (using an appraisal, AVM, or Broker Price Opinion from your Realtor).