Can I rent my FHA loan house out if I refinanced a few months ago?

Asked by tjkyte, Chicago, IL Mon Mar 4, 2013

We actually bought our house in December 2008, and our financial situation has gone steadily downhill since then. When we refinanced last fall (2012), we were planning on staying here, but things have gotten even worse, so it's rent or do a short sale.

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Wendy Calvert’s answer
Wendy Calvert, Agent, Chicago, IL
Wed Mar 6, 2013
As an attorney and broker, I agree with Mr Sharp. Review the paperwork including the terms of signed contract and any endorsements you may have signed first and follow up with service provider or mortgage holder to see if there are any exceptions and if so get that agreement in writing. There may be some financial considerations they will take into account You should also consider consulting with an attorney as well.
0 votes
Santiago Ken…, Agent, Chicago, IL
Tue Mar 26, 2013
I am sorry to hear that but its your house , i will do a short sale in your case
0 votes
Riccardo War…, Agent, Bolingbrook, IL
Tue Mar 5, 2013
Mr Sharp took the words right out of my mouth.


Sean Cochran
http://www.qmlending.com
630-470-6830 office
630-330-2229 cell
0 votes
, ,
Tue Mar 5, 2013
You signed an agreement at closing stating that you intended to occupy the property for at least 1 year - However things change. You can notify your service provider and let them know the circumstances - They will prefer you rent rather than go through a short sale.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes
Matt Laricy, Agent, Chicago, IL
Tue Mar 5, 2013
Most likely when you refinanced, you probably signed something stating you would live there for X amount of years. If you did, then legally you cant rent it out. If not, then do as you please.
0 votes
Jessica Tracy, Agent, North Windham, CT
Tue Mar 5, 2013
You would need to contact you home owner's insurance company to let them know that you are renting it out. They would then speak with your bank to let them know of the changes, so you might as well tell them your situation.
0 votes
John Povlitz, Agent, Zephyrhills, FL
Tue Mar 5, 2013
You do not have to notify the lender.

It's your home to do as you want.

Lease it and have a nice day.
0 votes
Jorge Vega, Agent, Chicago, IL
Tue Mar 5, 2013
On any FHA loan you are to notify the lender of any change in occupancy. If there has been an unusual change in circumstances or a relocation of employment then most lender will not question why you moved out and rented your home. When in doubt contact an attorney and have them review your options. Good luck!
0 votes
Scott Miller, Agent, Boca Raton, FL
Mon Mar 4, 2013
Hi TJ.

I think your question has everything to do with intent, pure and simple. If your intent was to stay in your home when you refinanced, and your financial situation has changed dramatically since then, this is YOUR house, to do with as you please. You told the truth at the time of refinancing, now you're in dire straits, this is YOUR decision.

If you can rent your home, keep an eye on it (most important), and avoid a short-sale until prices go back up, then you are being a responsible homeowner, in my professional opinion.

GOOD LUCK and I wish you well.

Scott Miller
Realty Associates
Boca Raton, Miami Beach, FL
0 votes
Bill J Delig…, Agent, Naperville, IL
Mon Mar 4, 2013
It sounds like the loan you obtained was for an owner occupant. In theory you should contact your lender upon moving out. In practice if you make the payments on time they will likely not bother you. Check your loan paperwork for the particulars.
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