If I put a down payment on a house, can I immediately begin renting it out, using that rent to help pay down the mortgage? Is this feasible or am I missing some dynamic? There must be a downside. Please help if u know something i dont. If its a stupid question remember im just 23 :)
2006-08-22 20:39:22 · 9 answers · asked by MysteryMan 3 in Business & Finance ➔ Renting & Real Estate
I will answer this from a lenders standpoint since I do mortgage loans. If the loan program that you qualified for stipulates that you are an owner-occupant, then in theory you are supposed to live in it. However, If you are stating that the property will be an investment property then that wont be an issue but keep in mind that the requirements for an investment property are higher as will be the rate. Also, you will be ultimately responsible for the mortgage. Good luck
2006-08-22 20:45:00 · answer #1 · answered by iz R 2 · 0⤊ 0⤋
No, you must first close on the house, adn then when it comes into your posession, you can begin renting it. You must close (take posession) first, and that will require you going to the closing after your finaning has been obtained for the mortgage. You must also have proof of insurance for the mortgage company and a number of other important items. Check with a real estate agent.
2006-08-23 04:08:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It sounds like you want to do this not that you have done it so with that in mind. You need to make an offer, subject to financing, that allows you to rent the property, sublease the property and do showings to prospective buyers as you proceed to and prior to closing. The down payment does not allow you to do anything; the controlling instrument that allows you to do what you want to do is the offer to purchase. Make sure that on the offer you address the issue of the doctrine of merger so that you are protected from errors in the closing instruments versus the original meeting of the minds on the offer.
2006-08-23 08:41:36 · answer #3 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
The house is yours if the contract says so. Usually a down-payment is just that.
When ownership has transferred you can rent it out and pay of your mortgage.
2006-08-23 03:46:10 · answer #4 · answered by Puppy Zwolle 7 · 0⤊ 0⤋
i bought my house with a down payment, and took out a loan for the rest. my tenants are pretty much paying the mortgage with the rent. it's a good deal. in a few years the value will have skyrocketed and i'll sell.
2006-08-23 03:42:56 · answer #5 · answered by Young T 1 · 0⤊ 0⤋
It depends on whether you got got the loan at terms for an owner occupied dwelling or investment property. Congrats for starting early.
2006-08-23 07:11:42 · answer #6 · answered by Barbwired 7 · 0⤊ 0⤋
what kind of loan are you took?
if you have investment loan - yo u can rent the house right away.
if you apply for primary residence loan- you have live in this house for 12 months, before you can rent out.
2006-08-23 04:09:58 · answer #7 · answered by bianca 4 · 0⤊ 0⤋
Good idea, and even better that your starting early ! If you want an online chat come over and ask me.
Antal
Surefast Mortgage
AToth@SurefastMortgage.com
Copy/Paste entire link:
http://gabbly.com/http://www.surefastmortgage.com
2006-08-23 11:57:18 · answer #8 · answered by Antal T 2 · 0⤊ 0⤋
Yes it's possible.
2006-08-23 03:55:42 · answer #9 · answered by vrazumniy 2 · 0⤊ 1⤋