Converting primary residence to rental

[Amie D.]

When I convert my primary residence (single family home) to a rental property, am I also required to refinance my mortgage to that of an investment property?

Thanks !

[Des Shei]

most people would recommend if you have equity, then it is a good idea to refi to a conventional loan IF you purchased as FHA or with the intention to owner occupy. That said the banks generally won't come after you as long as you keep paying and have a landlord insurance policy in place. FHA wouldn't come after you if you've lived in the house past the statutory period( i believe it is a year, maybe 6 months). I just went through this last year. i had lived in the house for about 2.5years, so i moved out, got insurance as an investment property and rented the place on a lease. When the policy changed the bank will know but generally wouldn't exercise any heartache for you. THe problem people run into with fraud of this nature is if they purchase the property as OOC without the intention to live in it and rent it out quickly. The IRS, bank etc finds out and that lands in you not too pleasant territory. :) hope this helps and Happy investing.