I just refinanced. Does my 12 month waiting period start over?

[Ricardo Navarro]

I just recently refinanced my primary residence that I have lived in for 2 years but I want to convert it to now convert it to a rental. I am concerned that if I convert it to a rental I won't be able to get another primary residence loan because the refi went through a different lender. My loan disclosure for the new loan says there is no demand feature for the new current loan but I am not sure if the demand feature is referring to this type of situation. Anyone have any thoughts I should consider?

[Jaysen Medhurst]

Couple of things to consider, @Ricardo Navarro:

1. The issue isn't that the lender potentially calls your loan. The issue is that you likely agreed to owner-occupy for at least one year as part of the refi mortgage agreement. Move before then and you're technically committing mortgage fraud--not good. Intent is important here. If you took the loan with intention of moving out before a year, you may have trouble. If your living situation changed (e.g. got a new job in a different city), that shouldn't be a problem.
2. The real question is, will your home will make a good rental property? I'll spoil it right up front for you, probably not. Most SFHs with a value above ~$130k don't make financial sense as a rental. The rent-to-value ratio gets out of whack and you either can't cash flow or your Return on Equity (ROE) is horrific. How much is your home worth? What would it rent for?