Life changes... Renting my primary only 9 months after purchase

[Loren Whitney]

Hi everyone,

My family and I purchased our first home in May, 2012. We moved into our new home the same day we received our keys at closing and have loved everyday in the home since. Many life events have transpired since the acquisition of our home and after only nine months, we're planning on moving out of state to pursue a more fulfilling life.

So... I've decided to rent our primary residence. I realize there are many considerations and having worked closely with real estate investors over the last two years - I feel comfortable and capable. In fact, I've already screened and approved a very quality tenant for the property on a one year lease. All my math makes good sense and reserves/local networks are in place. I will be landlording myself and have backups in place as well.

The real reason for my post is to discuss my mortgage agreement that mirror Freddie Mac guidelines on Occupancy. I am required to occupy my home within 60 days (done) and use the home as my primary residence for at least 12 months. It appears I have an issue, yes? I know I'm not facing issues related to fraud because the life events that have occurred since our purchase could have never been foreseen.

A majority of people that I've already spoken to are telling me that this sort of thing happens everyday and as long as I make my payments, I shouldn't worry about the loan being called. Well, I'm a pretty conservative guy when it comes to finances and the "don't worry about it approach" doesn't exactly make me feel warm and fuzzy inside. That being said, I have avoided calling my mortgage lender to date in fear that they'll exercise their rights to call the loan or force me into a refi.

After reading about "extenuating circumstances", I don't think that they apply to my situation. I'm leaving a good job for another good job and my pay will only increase. My understanding is that extenuating circumstances are directly correlated to financial loss and an inability to satisfy the loan in question. Does that sound right?

I'm feeling like I have three options.

1. Don't say a damn thing and continue making my payments. Then call my insurance company come the 12 month mark to acquire a landlord policy.
2. Acquire a landlord policy now for "real" insurance coverage and hope the bank never says anything.
3. Call my lender and hope all goes well at their mercy.

I know the other obvious choice is to just stay put until the one year mark. Let's not go there okay...

Can anyone offer suggestions or input? I've already seen copies of denial requests from lenders so please don't repost those. :) haha

Thanks in advance for your collaboration and sorry for the long post. PS - Go Niners!