I have a home that I've lived in for four years and now interested in renting out. Do mortgage companies typically require you to disclose the house will be designated as a rental instead of a primary residence. Just wondering if anyone has had experience with this in the past. Regarding insurance for the home, is it necessary to switch from a residential homeowners policy to a renting dwelling plan?
2007-05-23 13:30:51 · 5 answers · asked by Johnny H 1 in Business & Finance ➔ Renting & Real Estate
No. Occupancy checks are only within the first year. At the point in which you last purchased or refinanced it was your intention to live there so you are clear now.
2007-05-23 14:58:08 · answer #1 · answered by Ryan M 2 · 0⤊ 0⤋
As far as the motgagt company is concerned they don't have to be notified. As long as you keep the payments on time theu really don't care. Insurnace on the other hand it is required that you tell them and change the insurance. The rates will probably go down for you. You should be sure that in any rental agreement you come up with be sure to have insurance a requirement of the rental agreement.
2007-05-23 21:00:06 · answer #2 · answered by ttpawpaw 7 · 0⤊ 0⤋
Check your contract. Some mortgages require that the dwelling be owner occupied. Others do not specify. But you will need more down payment (typically) on your next property purchase.
Yes, you need to change your insurance. Definately!
2007-05-23 20:37:38 · answer #3 · answered by godged 7 · 0⤊ 0⤋
You absolutely want to change your insurance coverage to that of a rental dwelling. It won't cost you too much more in premium, but does offer additional coverages in terms of liabilities.
2007-05-23 20:57:22 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
I agree, change your insurance for sure but you have to dig out your old paperwork and read the note for the loan to see if there are any special restrictions.
2007-05-23 20:58:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋