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Loan restrictions to consider when renting your home in Sacramento!


When purchasing a home using a conventional loan, an FHA or a VA loan, what are some of the restrictions with regards to renting your home out after purchasing it?


When purchasing a home using a conventional loan, an FHA loan, or a VA loan, there are different restrictions with regards to renting your home out after purchasing it. Here are some of the restrictions for each type of loan:


Conventional loan:


If you purchase your home using a conventional loan, there are generally no restrictions on renting it out after you close on the property. However, if you plan to rent out the property immediately after closing, you will need to declare your intent to do so on the loan application.


FHA loan:


If you purchase your home using an FHA loan, you are required to live in the property as your primary residence for a minimum of one year before you can rent it out. This requirement is known as the FHA owner-occupancy rule. After one year, you may rent out the property, but you must notify your lender of your intent to do so.


VA loan:


If you purchase your home using a VA loan, you are required to live in the property as your primary residence for a minimum of one year before you can rent it out. After one year, you may rent out the property, but you must notify your lender of your intent to do so. Additionally, if you are a disabled veteran, you may be exempt from the occupancy requirement.


It is important to note that if you violate the occupancy requirements of your loan, you may be in default and your lender may have the right to call the loan due in full. In addition, if you plan to rent out your property, you may need to obtain a landlord insurance policy to protect your investment.


In conclusion, if you are considering renting out your home after purchasing it using a conventional loan, an FHA loan, or a VA loan, it is important to understand the restrictions that apply to your particular loan type. Make sure to review your loan documents carefully and consult with your lender before making any decisions.


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