Get conventional loan and rent out immediately

[Joseph L.]

Hello,

I was told since I don't any property I could do s conventional loan for a property and say it's my primary residence and then I could immediately rent it out without having to live in it. This would be my preference as I would want to only put the minimum down instead of 20-30%.

Is there any wrongful liability that could arise? I read sometimes that you need to live in the place for a year to get owner-occupied loan rates is thst true? I am in Florida and if anyone could point me in the right direction to gather more information that would be appreciated.

Looking forward to learning and owning properties soon.

Thanks,

Joe

[Angelo Russo]

Joseph,
the one year is what is called a safe haven. live in it for a year, and they will not have a problem. If you do not meet the safe harbor, it's provable intent. My brother bought a house from Fannie Mae and fixed it up quite a bit. he was moving in with his girlfriend. She was in for a month and right when he was moving in they broke up. So he didn't want to live there any more and so he rented it out. As his INTENTION was truly (and somewhat provable) to live in the place at the time of signing he was OK.

Coincidently, live in it for 2 of the last 5 years and you do not have to claim capital gains on the property :) So live in it for two years, then rent for three and no tax on the uptake :) Just keep moving and you can save a lot on taxes.