Posted on: 26th Jun, 2012 10:24 am
We just purchased a condo in FL as a second home. we want to rent the condo out yearly (long term) for now since we will not be moving down to florida for at least 5 years. our loan was not taken out as an income property loan.
what can happen to us if our lender finds out we are renting our place?
what can happen to us if our lender finds out we are renting our place?
You would want to check your loan documents to see what clause is exercised if you rent out the home. You should have a clause stating you will occupy the residence for X amount of time and that you would be liable for the Due on Sale clause, meaning the lender can force you to pay the entire mortgage. Good Luck
Hi MMM,
The lender may call the loan due if he finds that the property is being rented, if such a clause is mentioned in your mortgage docs.
The lender may call the loan due if he finds that the property is being rented, if such a clause is mentioned in your mortgage docs.
Hello mmm,
The approval process for a stated income loan is now much stricter, but there are many options still available to the borrower.
:idea:
The approval process for a stated income loan is now much stricter, but there are many options still available to the borrower.
:idea:
I'm wondering how Sabrina's reply relates to the question? Or any other questions consumers ask. Why do you allow her to stay here, Sam? She offers no value and confuses consumers. It doesn't make sense - and we've lost George because of her - a guy who was truly helpful and sincere.
One factor you need to keep in your thoughts is that a down transaction is required when implementing for an earning's loans, and just how great this is, is reliant on the organization where you are going to take this loan.
Well said, Raymond.
MMM,
If you recently did a mortgage as a mortgage for a second/vacation home, the rates were better than they would have been for an investor property. If you did that less than a year ago and you knew you were going to rent it for rental income, you were not honest.
That being said, now that you have the mortgage and the property and you rent it, one of three things will happen:
1. If the lender finds out, they may call the loan due, or
2. If the lender finds out, they may just increase your rate to the investor mortgage rate, or
3. If you always pay the mortgage on time, the lender will probabaly never find out.
MMM,
If you recently did a mortgage as a mortgage for a second/vacation home, the rates were better than they would have been for an investor property. If you did that less than a year ago and you knew you were going to rent it for rental income, you were not honest.
That being said, now that you have the mortgage and the property and you rent it, one of three things will happen:
1. If the lender finds out, they may call the loan due, or
2. If the lender finds out, they may just increase your rate to the investor mortgage rate, or
3. If you always pay the mortgage on time, the lender will probabaly never find out.
