Wanting to turn my primary into a rental

[Alexander Reyes]

I just bought my house a couple months back. And decided to post it on Zillow to get it rented out. My monthly payments are $1081 and I could get it rented for $1400 and tenant is in charge of utilities as well. The thing about it though is that I have to live in it for a year. What if I don’t want to wait 10 months? Is there a way to get around that loophole? An attorney that is willing to help? Or any ideas?

[Dan Weber]

If it is an FHA or some other owner occupied loan that requires you to live it in for a year, then not doing so would be considered mortgage fraud. Penalties for mortgage fraud result in both fines and prison time - not something to take lightly.

Options: 

1. Is there multiple bedrooms? Live in one bedroom and rent the other(s).

2.Sell it and buy something with more units that you can live in one and rent out the others.

3. Is there an opportunity to add value? If so, add value and force appreciation. Try and reach your 80/20 or 75/25 LTV and refi out of your owner occupied loan.