USDA Rural Developement Loan (renter, residence, interest rate, economy)

[twistedsense]

Not Sure where to put this so move it if it needs to be moved mods. Thanks


I got my home thru a rural developement loan. Have been in the home over three years now. We are thinking about moving and possibly renting the house out. I cant find any info on the USDA website that says I cant rent my home out. Does anyone know if I am allowed to rent out my home while having a USDA RD loan?

[FalconheadWest]

You bought it as a primary residence. You lived in it as promised per the loan you signed. Once you've lived in it as your primary residence, you can do whatever you want. You can only hold one government loan at a time, so if you're looking at buying another house, you'll need to buy it with a conventional loan.

[twistedsense]

So as long as I'm not trying to get another loan I'm okay? We're trying to sell it but not sure if it will in this economy. We're probably going to have to move into my in-laws house. I figured might as well try to rent it instead of letting it go back to the bank. My eyes cross when I try to read all the writing on our loan agreement.

So it boils down to this. As long as I'm not trying to purchase another house I should be okay?

[FalconheadWest]

Originally Posted by twistedsense

So it boils down to this. As long as I'm not trying to purchase another house I should be okay?

If you have no plans of buying another house, you're fine. I'm also saying that you can buy another house, if you qualify for a conventional loan and not a government loan.

[rickdob]

They will drop your subsidy though. I got a renter into mine and my loan rate went up to 6.25% (the original interest rate) instead of the subsidized rate of 4%. So my payments went up quite a bit.