Posted on: 29th Apr, 2010 09:15 am
I think I know the answer but I will ask anyways. Would it be considered fraud if I were to re-finance my current home to a 3/1 ARM and then turn around and rent it to my parents starting in September of this year? We are looking to buy a newer homne and are going to let my parents live in our current home for a few years before selling it. Our rate right now is pretty high, I can re-finance to a 3/1 ARM and save about $400 a month. One mortgage broker told me it would be no problem but my realtor told me it might be considered fraud since technically I might not meet the residency requirements spelled out in most mortgages.
Thanks,
Doug
Thanks,
Doug
Welcome blazers,
You need to check out the residency requirement mentioned in your mortgage docs. If the doc mentions that the it's mandatory for you to stay in the property, then it will be considered as a fraud if you rent out the property to your parents after refinancing. If no such clause is mentioned, then you will be able to rent out the property.
You need to check out the residency requirement mentioned in your mortgage docs. If the doc mentions that the it's mandatory for you to stay in the property, then it will be considered as a fraud if you rent out the property to your parents after refinancing. If no such clause is mentioned, then you will be able to rent out the property.