When you first buy a house with a mortgage, can you rent the house to help make the monthly payments?
Answer:
Yes, obviously. You'd lose your homestead exemption if you don't live in the house. You could rent a room to someone (check zoning regs first) to help defray costs.
Sure, but where would you live?
Yes, but where will you live?
It's your house do do as you please..
You can rent it at any time after you sign the closing documents
That would depend on the wording of the sales agreement/mortgage. Some homes are for occupation by owner only - neighborhood/association rules and the like.
Read everything very carefully - and check out rules of the subdivision. Some of them have some strict/strange rules, everything from owner occupied only, to the fact that your shutters have to be painted red.
my daughter just bought the house I am living in. we signed a renters agreement so that if she and her husband find another house or decide to build in the future they will be able to even tho they are buying this on
yes, just be aware that it may take you a while to find a qualified tenant. Also, tenants never take as much care of a home as an owner, so be aware.
I currently have multiple rental properties, beides my primary residence. It just can be hard if you go 2-3 months inbetween leases if tenants move out, or god forbid you have to evict.
There can be alot of benefits, and you can make good money if you are very careful.
If you need assistacne to purchase the rental, or if you have some more questions avout the process, feel free to give me a call.
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My name is Jason Fry, i work for Providential Bacnorp, a nationwide mortgage lender.
Luckily you live in an area that i am very familiar with.
Alot of people want to move to this area. So, finding renters may not be as hard as in ohter locations throughout the US.
Feel free to call me at 312-264-6448, or email me at jasonf@providential.com
Good Luck!
Jason Fry
Licensed Mortgage Consultant
Providential Bancorp
312-264-6448
different mortgage solutions exists, I have outlined some below
(Note : I would also suggest you read : http://umgarticles.atspace.com/mortgage..
Pension Plan
Using a pension plan to accumulate the balance of your mortgage is a tax free saving scheme. The balance of your house will be saved over a period of time until you can pay your final balance. If you do intend to use a pension fund to save for the balance of your house, consideration should be taken into account to open another pension fund for retirement purposes too.
ISA Plan
With an ISA plan you invest in stocks and shares via an Individual Savings Account (ISA) - which is a tax-free method of saving. This method of saving may not be suitable for most borrowers. Before considering this option you should consult with an independent financial adviser.
Endowment
An endowment is still the most common type of interest only mortgage which also provides life assurance cover and a fixed payment for investment. The endowment policy along with the interest only mortgage should in effect end at the same time, leaving you with the ownership of your home and nothing to pay. Endowments have undergone much criticism; this is due to investors being promised high returns from their investments. However lately this has not been the case, borrowers have found their investments have been as good as expected and a shortfall in the end amount of invested cash will not match the amount owed on the current property.
Taking into account the recent problems that have arisen regarding endowment policies it is worth remembering that returns on endowment policies have been pretty good, however you do need to see the term out in full. Also endowments do provide life assurance as part of the actual policy, so in the unfortunate event of a death the mortgage balance is paid in full.
Advantages of an interest only mortgage
• Your investments and savings could accumulate more than the required amount to cover the final payment; this could leave you more cash for your own personal use.
• Some plans have good tax benefits and help reach the required amount it a quicker and cheaper rate.
Disadvantages of an interest only mortgage
• In the unfortunate event of your investments not acquiring the designated amount of cash to cover the loan repayment, the investor could face a shortfall which they will then need to pay. If you are worried about a shortfall on your investment, you should keep in touch with your investor and request regular updates on the situation of your endowment. If the worst comes to the worst, you can increase payments to compensate for the loss of investment.
• Cashing in your endowment, ISA or pension could have adverse effects on the amount of money you have saved over the past however many years. If you do decide to cash in any existing policies you may be subjected to a penalty, this could be a cash amount specified by the investment company/lender. Please seek professional advice if you are worried about the end results of your finances, don’t be too hasty as most policies accumulate more of the cash in the final year
for a complete informational package I suggest you visit one of the many mortgage informational sites the best free one in my opinion is :
also read http://umgarticles.atspace.com/mortgage..
Whenever you purchase a home, you are required to disclose how you intend to use the property to the lender.
Your choices are:
1. Primary Residence (Your Home)
2. Second Home (Vacation Home)
3. Investment Property (Rental/Flip)
This is one of the first few questions that is asked on the uniform residential loan application that all lenders use.
They may consider it fraud and find you in default if you do other than what you disclosed.
The good news is that they rarely find out. The only reason a lender would check is if they suspected something or if you were late on your payments.
The only time they even question whether it is truly a primary residence is if you have another property that you are on title to that is larger and in a more desirable area.
This sounds like your first property. If so, then you have nothing to worry about.
Please send me an email if there is any way I can help.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
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