Loan as owner occupied but want to rent out my property?

It is your intent at the time you got the loan. If later you want to rent it out, that is fine, so long as you lived there at some point.

Occupancy fraud: Usually this is seen where the borrower wishes to obtain a mortgage to acquire an investment property, but instead the borrower claims on the loan application that they will occupy the property. If undetected, the borrower typically obtains a lower interest rate than was warranted, and the lender receives insufficient return on investment to cover the risk, because loans non-owner-occupied properties tend to have higher rates of delinquency and foreclosure.

Now read this link: http://www.fbi.gov/pressrel/pressrel05/quickflip12...

All that being said, I do know people that have done this very thing and they're not in prison, I dont' really see how the lender would ever find out.

You should make sure to check and or update your insurance, as I believe that most policies will have clauses that specify owner occupied v. rentals

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Owner occupied loans require you to live in them for at least a set period before you rent them out. Typically this period is 12 months.

If you do this, because you are deceiving the lender in order to get financing they would not otherwise offer, you are committing fraud and throwing away all of your consumer protections under law. If they detect it (and due to your question they have likely tagged your file) they have the right to call the note, giving you only a very short period to pay it or lose the property, usually 7 days. They can also potentially recast the loan under worst case pricing. Due to the fraudulent nature of the activity, you will be liable for any shortfall as well, even if the loan was theoretically non-recourse financing.

Yes, I know of people that have gotten away with it. I also know of people that have been busted. It's not worth the risk, and lenders are getting wiser and wiser to it. For instance, coordinating with insurance companies. You have to have valid insurance to have a loan. If you change your insurance to non-owner occupied, watch out.

It should not be a problem so long as you did not get a special loan that requires you to occupy for a certain length of time. Check with the mortgage company to be sure. They might want to have you change your insurance policy to cover liability or damage from a renter.

I know someone that does it and gets away with it--every 2 years he purchases another "owner occupied" property. He's never lived in ONE of them but O/O mortgage usually only requires you to live there for 2 years then do whatev you want.

I am a mortgage broker and I can tell you that it doesn't matter if you rent out the property at this point. the lender will never know and couldn't really do anything if they did. If you eventually, buy a new home and keep that as a rental, you can buy a new primary residence (with a lower rate than investment property) as long as you have a rental agreement on the property you already own.

examine your loan contract and verify the loan could be void and reported as in case you hire out the homestead. Your contemporary loan is for a generally used place of living with low activity fee and not a commercial loan. your assets proprietor's coverage might additionally be void. In NJ you like a consistent certificates of Occupany once you hire it out.

There are no legal reprocussions, however it is true that you will have to change your homeowners insurance policy, since you should have renter's insurance to cover you in case something happens to one of your tennants. You should also look into starting up an LLC, so that if something bad does happen to a tennant while renting the home you are not personally responsible if they seek monetary resolution.

if you want to go by the book in IL- you have to live in your house 12 mts, before you can rent out, but law is a law and people do what they do. lenders can always check if you don't lie to them, but if mortgage payment is on time- i don't thing they will came to your house. it's your decision what you will do, but remember that you breaking the law.