Can I rent out my house after I refinance it?

[Kimberly Navarro]

Hello, we bought a house a year ago and are currently going through the refinancing. My husband has handled the refinancing so I am not sure of the terms (waiting for it to be finalized to review). 

Can you typically rent out a house after a refinance? 

We've lived in the house for over a year and bought it as our primary residence. We fixed the house up and licensed it as an RCFE (Residential Care Facility for the Elderly) but are having a really hard time finding residents, which is why we have considered to let go of that dream and rent out the house with the intent of starting our rental portfolio. Since we have already started the refinancing process, is it too late to want to rent out? 

We live in Southern California. 

Any feedback helps! Thank you. 

[Shera Linares]

Hi @Kimberly Navarro,

Have you considered using your home as a group home for veterans or another type of care home? Or maybe lease the home to an existing RCFE business who is looking to rent a property instead of purchasing one? Unless that is what you were trying to do... I live in Southern California also and am a licensed administrator for RCFEs but have stopped pursuing this path for the moment since we would need to purchase a home and renovate it.

Another option if you plan on staying in the house is to rent the individual rooms (house hack). If you don't plan on staying and want to rent the house out entirely, you will need an investment loan with 20% down as @Peter Mckernan stated. Good luck!