Hi The answer is YES! If you live in the house for one year then start renting it out you will satisfy the occupancy requirements from most lenders. When you go buy your next house as long as its closer to your work and is at equal or greater value you will still be able to qualify for a owner occupied loan. This will also depend on credit score, income, assets and debt.
I am a Mortgage Banker and a Licensed Realtor. Please contact me for a better explanation.
It is not worth doing for the rate alone. So, it depends how much cash are you taking.
Also, you must factor in how many years are left on your present mortgage. For example, if you already had your mortgage 7 years you may not want to start all over with a 30 year loan. It may make sense to take a 20 or 25 year loan or even a 15 year loan.
Finally, if you plan to move within a years, you might consider a slightly higher rate on a home equity loan in order to save the closing costs.
Bill Turano Senior Vice President
1715 Rte 88 West
Brick NJ 08724