Primary Home loan

[Alvaro Rodriguez]

I bought a primary home/owner-occupied property. But two months later I am moving away and don't know what to do with the house. am I ok to rent it even if it is less than a year? Do I have to submit some kind of paperwork to the lender? How can I keep the property and still be able to move and not commit any fraud? any guidance is appreciated.

[Andrew Postell]

@Alvaro Rodriguez you can certainly rent your property now.  No need to tell your lender or inform them. They'll find out either way and you telling them won't guarantee anything or prevent anything.  You did sign paperwork when you purchased this home (assuming you used a "normal" loan through an "institutional" lender and not a private lender) that you would occupy the home for 12 months.  You can certainly rent it now.  The lender may want to know if you knew if you were moving before you closed...if you did, then that would be bad. Because you signed paperwork stating you would live there and occupy it for 12 months.  Everyone understands if things happen...but they don't understand if you knew about it ahead of time and pledged something that wasn't possible.

Moving - no problem.  Renting - no problem.  Buying a new home where you are going...they will want some type of explanation if you buy before that 12 month pledge period is up...after 12 months, no problem.  

Hope all of that makes sense.