Renting a newly financed property

[Camille Ball]

Hello BP! My husband and I made a plan earlier this year to take advantage of the hot selling market in our area and sell our primary residence so we can build our forever home on property we have. Our bright idea was to move into this BRRRR we just finished remodeling and needed to cash out refinance. We would stay there for about a year and a half while we built our house then rent it like we planned. Easy peasy. Except, our house isn't selling. We moved into the rental and listed our old primary residence in April. Now it's 4 months later with no sale and 2 mortgages.

At this point we’d rather move back into our house than give it away. My question is, will our lender find out if it’s rented? We did a conventional loan with 80% financed and our lender knew our plan was to rent it out, just not this soon. Would our insurance company alert them to change in coverage?

What’s that saying about the best laid plans.. this is definitely one of those times.

Thanks in advance!