Basic Questions on Residential vs. Rental Use

[Joe Li]

Hi,

I'm really new to RE investing/buying in the US although I'm an investor by profession in other parts of the world/other asset classes. One fundamental question bugs me: it seems that loan providers usually ask about the purpose of the purchase (self-used home vs. renting out) and charge different mortgage rates and fees (that part I understand from having worked in the financial industry myself), but how about the following scenario: I buy a single family home or condo, rent it out for the 1st 12-18 months (since I'm currently outside of the US but already obtained green cards) and move in as our own primary home after that. How do I (or the financiers) define the nature of this property? Will mortgage contracts allow me to change the nature of the property in between? How does the gov't regulate these issues?

In most Asian countries, mortgage rates for 2nd and beyond properties are indeed higher because they are treated as investments. I don't know if that's the case for the US. Since I or my spouse do not currently own any properties in the US, would our first property be treated as 'primary home' even if we rent it out for 1 year or so?

thanks!

Joe