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Question on Leasing a home?

Hey guys, a few months ago i purchased a house in which i currently reside with my parents. The reason for this is that they were having problems paying for our previous house and their credit wasn't good enough to get a new one. I purchased the home, but now i want to move out of the house. I'm planning on going to the bank to try to get a loan to purchase an apartment. However, with this other house under my name i'm in the process of preparing a lease for my parents to sign so the bank sees that there will be someone paying for this property. Would this be the best thing to do in this situation, anything else i could do for the bank to approve another loan under my name with one already active on this other property? And would i have to take this signed lease to the bank to be able to ask for this other loan? Thanks for any info you can provide!

1 Answer

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  • ?
    Lv 7
    10 years ago
    Favorite Answer

    Not going to happen since you MUST live in the house for 3 year. You cannot turn it into a rental after a few months. Read your mortgage contract. You also got a low mortgage rate on the house since it was your primary residence. Turn it into a rental and the lender can up your interest rate to 8.5 or 9% as a Commercial Lease. Same with the homeowner's insurance.

    Research before you cause yourself legal problems

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