Can I rent a house I got with an FHA loan that now is not my primary residence? I moved out of it because we relocated to another state.

Asked by Lia, Lake Hopatcong, NJ Wed Mar 24, 2010

I got a house through an FHA loan last year. In the mean time, my husband got a job in other state and we relocated, while our house is on the market for sale now. My realtor suggested to do a "short sale" because "your house will never sale at that price, and there is a lot of competition". My payments are up to date, and even though is not easy, I am joggling it all, including rent to an apartment right now in the new state. A short sale will affect our credit and we wil not get a house until like 3-5 from now on. The question is : CAN I RENT MY HOUSE? Is that correct legally? Thank you in advance for your comments

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Raquel Laven…, Agent, Stockbridge, GA
Wed Mar 24, 2010
I agree with John, the best thing you can do is to talk to your lender that holds this mortgage to find out what your options are. Being that you are current with payments, they may be more flexible and there should be exceptions to situation as Job Transfers, where you had to move in order to keep employment and not just because you wanted to.
Best wishes, hope you can find a solution that will be of benefit to you...
1 vote
John Sacktig, Agent, New Jersey, NJ
Wed Mar 24, 2010
Hi Lia,

The advice for you to "do a short sale" is the first mistake.... If you are not in some type of hardship or financial difficulty, getting the short sale approved is going to be tough. Simply stated, the bank may "let you" do it.. they may not release you from the balance that is short. It is not that easy to do and it could hurt anyway,

I would tell you to talk to a mortgage professional regarding the rules on relocation with an FHA loan. There may be some type of relocation and being able to rent type clause.

I hope it works out for you! Good Luck!
1 vote
, ,
Wed Sep 18, 2013

Dan is Correct. You can rent out your home legally. No one will come knocking :)
Since you took out the mortgage with the intention to move into the property as your primary residence within 30 days from closing and you lived in the home for X amount of time, you are legally ok to do as you wish.

I do not recommend a "Short Sale". You are correct that you will not be able to purchase again for the next 3-5 years based on current foreclosure rules.

If you need anything else, feel free to contact me anytime.

my website is :
My cell phone is: 201.403.6587

I look forward to helping anyone in need of a Mortgage for a Purchase or a Refinance!

Michael DeChristofano
NMLS #214287
Annie-Mac Home Mortgage
cell: 201.403.6587
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed Mar 24, 2010
Lia, To the best of my knowledge, if you intended to live in the home as your primary residence at the time you took out the mortgage, and then did live in the home, you should not have a problem converting it to rental property as a result of your relocation.
It seems that doing so would be in your interest as well as the lender provided your tenants maintain the home in reasonable condition and you are able to continue to pay your mortgage.
If you put it up for rent, don't be hung up on getting exactly what you are required to pay as rent. If you take a monthly loss of a couple hundred dollars, but have good tenants you'll be better off than having it vacant for several months.
Speak to a local property management company about rent rates in your area.
I hope things work out for you.
0 votes
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