Want to rent temporarily, keep as primary residence (tenants, renter, lender)

[hippotomas]

[FONT=Tms Rmn]We just closed on our townhome as primary residency under an FHA loan. Unfortunately, at the time of our contract, few months before closing, my husband got a job out of state. We decided to close on it to keep our earnest money and to keep the house since he plans to move back. I plan to stay in the meantime with my parents close by. In this span of 2 yrs we want to rent it out. Will there be any problems if I change the homeowners insurance policy to rental policy since the loan stipulation is like 6 months to live there and the lender may find out from the change in the insurance policy?
[/FONT]

[ShaneSA]

the lender should have a copy of the initail homeowners insurance. If and when you cancel it and or change it to a renter's policy, the insurance company may send a copy to the mortgage company. Especially if the insurance and taxes are in escrow with the mortgage. Ask the insurance agent if that is the process. The mortagage company may or may not make it an issue.

[MrRational]

Originally Posted by hippotomas

We just closed on our townhome as primary residency under an FHA loan.
...my husband got a job out of state.

This is considered a hardship.
Try to use this to get out of the mortgage and the house.
Any alternatives will (almost always) cost more.

he plans to move back.
I plan to stay ... with my parents close by.
In this span of 2 yrs we want to rent it out.

Oy vey.
Be very, very, very.... careful.

homeowners insurance policy to rental policy...
the loan stipulation is like 6 months to live...
Six months? that's rather generous of them.

Will there be any problems if...

Oh yeah there will; and the property tax will be more too.
About the only way you do this is to "sneak" it.

hth

[bentlebee]

If you also claim "homestead" than it is fraud if it isn't your primary residence. In all other cases you are committing fraud if you don't disclose it to the ins./mortgage company.

Honesty is always the best thing to have a good night sleep without worrying about what will come in the mail the next day or who will on your doorstep...JMO.

[Kim in FL]

Yes, there will be problems. You will be found out by your lender. As stated above, if you are claiming 'homestead' on your property taxes and not living in the home, you are commiting fraud.

How will you be found out you say? Well......you insurance company for one thing will rat you out so fast your head will spin. And when you forward your mail to your parents home, they will find that out too.

No need to try and 'get out' of your mortage...there's no hardship in this situation...just a couple who made a major purchase without thinking in thru.

[Enkiktd]

Maybe consider living there and keeping it as your primary residence but rent out a room or two to tenants in the meantime to make up some of the monthly payment?