Home Buying in 60622>Question Details

Anonymous, Home Buyer in

Can you rent out an FHA financed property? And if you can't, why not?

Asked by Anonymous, Mon Sep 1, 2008

I was just wondering, because I am buying a condo with an FHA loan.
And just in case I decide want to buy something else, I was thinking i could just rent it out.

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Answers

5
Yes you can rent out an FHA financed out. Have you lived in it at all? You may want to clear it with your lender first because it may be construed as fraud if you purchased it saying that it was going to be a primary residence and now it turns to be an investment property.

Naima
2 votes Thank Flag Link Mon Sep 1, 2008
FHA loans we designed to help buyers afford their principal residence.

I had a very similar experience recently with a client and a unscrupulous lender. Find another answer to your refi if you're going to rent it out, and use FHA for an owner occupied purchase. FHA on a refi you don't plan to occupy will end with plenty of stress and misery. Find a high quality lender to guide you through. My client got though with his old condo rented and his new purchase intact. I am sure there's another option that doesn't require fraud.
1 vote Thank Flag Link Tue Sep 2, 2008
When you took out the loan, did you take it out as an owner-occupant? If so, you must occupy the home within 60 days and reside it in for at least a year, this is something that we hear will be monitored very closely. I think you should ask the lender who is doing your loan what the penalty will be if you decide to rent out the unit.
1 vote Thank Flag Link Mon Sep 1, 2008
Good answer Wayne. There is documentation in the closing package where the buyer certifies their intention to Owner Occupy.
0 votes Thank Flag Link Tue Sep 2, 2008
good morning...if you already have one fha loan....you cannot get a second one, unless your family has grown substantially, or you are moving far away for your job......yes, you can rent out an fha financed property...is the condo you want to buy on fha's list of approved condos?..i suggest revising your current hazard insurance to cover having tenants....i hope that helps......bob mcclure- mortgage now- farmington, michigan.. (248) 974-4444 direct cell....almost 14 yrs. experience....
0 votes Thank Flag Link Tue Sep 2, 2008
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