My home is a FHA , NIFA and i'm not suppose to rent? what to do.

[Clyde Stackhouse]

SOOO. long story short my wife and I bought our first home almost 2 years ago with a FHA / NIFA Nebraska INvestment Finance Authority. We didn't know we would want to rent this home out at the time but we are now moving and want to rent out our current home. The issue/concern we have is that NIFA's website states that you are supposed to live there for the life of the loan and not rent out the property.

"You must plan on living in the residence you purchase and not renting it out for the life of the NIFA mortgage loan. If you cease to occupy the residence as your principal residence for a continuous period of one year or more, the interest on your mortgage loan may not be deductible for Federal Income Tax purposes."

Has anyone heard of this actually being an issue? our realtor has had several other people do it with no problems but wanted to get BP thoughts and feed back.

FYI we looked into a REFI but we don't have 20% equity in it (2 yrs) and this will not be our primary residence in 30 days when we close on the new house.

[Brian Egr]

All it says is you may not be able to deduct the interest.  It doesn't say they will call the loan, unless that's in another paragraph of the agreement.