Is it OK to Rent Out Your House That's Backed by an FHA Loan?
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Rates are flat today. Today's rates with no lender fees are 3.750% APR on a 30 year, 2.875% APR on a 15 year and 2.750% APR on a 10 year. (click here for details)
So have you ever wondered if it's OK to rent out your house that's backed by an FHA loan?
The FHA home loan program definitely offers some great benefits to you. But there are restrictions. One of them being that you must live in the FHA home within 60 days of buying it. AND you must live in it for one year from the date of occupancy before you consider renting it out.
Check it out in today's video:
But like with anything - there are exceptions:
Growing family.If your single-family home just ain't cutting it anymore, you may be authorized for a second FHA home loan. You will have to document the number of family members you have. This exception is available to those blended families - like the Brady Bunch - so if by your marriage you gain an instant family that exceeds what your current bedrooms can handle, then you will be able to apply for a second FHA home loan.
Ridiculous commute.If your new job causes you to be on the road more than you are actually at work, you may also be entitled to apply for a second FHA home loan. You will of course have to provide proof of the commute hardship.
So why all the restrictions? Because the FHA home loan program was developed to help individuals get into a home for personal use; it was NOT developed to help investors obtain low-interest, guaranteed loans for investment properties.
And if you wonder, "Well, I haven't been in my house in a year so why can't I just rent it out anyways?"
You risk-taker, you. The FHA does do spot checks regionally on occasion. You could really put yourself in a spot if you get caught. I wouldn't advise it. It's your call.
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Tags: FHA home loan program, guaranteed loans, Rental property, restrictions on renting your FHA home