Turning a primary residence into a rental

[Scott Eakes]

Is it possible to buy a house with a low down payment conventional mortgage, live in it for a few years then buy another home(primary residence) and keep the original as a rental?

I understand a investment property mortgage would require a higher down payment. Just wondering if anyone has done something like this and if it is possible.

Newbie here, thanks for any help!!

Raleigh/Durham area NC

[Andrew Postell]

@Scott Eakes yes, you can absolutely do what you describe.  Not sure why a 203K loan was referenced above...you can use ANY loan type to do this.  The 203K loan is specifically designed for rehab.  Again, any loan can do this.  

It is important that you work with a lender that can do this though. It sounds strange but even though VA/FHA/Fannie Mae/Freddie Mac/etc. allow something like this a lender may have what we call an "overlay" concerning this. Overlays are the extra rules that lenders put OVER the FHA/VA/etc. guidelines. So do quiz your lender on their tolerance on this sort of thing...maybe a smaller lender might be better than a larger lender in this area....but PLENTY of investors do this with great success. Hope this helps!