Can I have a rental with a USDA loan?

[Mike Hendrickson]

I currently live in my house in SW Washington that I purchased with a USDA loan in 2013. My wife and I are looking to move out and convert our house into an investment property. Can we have a USDA loan on an investment property? Or do we need to refinance out of a USDA loan? I heard I need to change my insurance as well, is there any other items I need to be aware of? Thanks for your help!!!

[Tyler Rowland]

I know that this thread was over 2 years ago, but I did find it helpful.  Thought I would update it in case others are looking for answers to questions similar to this.  USDA does require the property to be your primary residence and meet the occupancy requirements for the property.  Must be occupied within 60 days of purchase, and must be considered the principle residence.  After 12 months you have met the intent required by USDA.  As mentioned above, USDA will not make you refinance into a loan if you want to rent out the property, but they do issue some warnings.
When a property is no longer occupied by the borrower as their primary residence it will affect their ability to refinance the mortgage with USDA or continue to be eligible for servicing and loss mitigation options. Borrowers will also be ineligible to obtain a new Section 502 direct or guaranteed loan until they have sold the current dwelling that is guaranteed by USDA.