Posted by Jake on December 17, 2004 at 15:24:31:
Does anyone have any experience with this, I’m sure that there are many people in this same situation.
First buying a home as owner occupied and then renting it out, what are the implications that go along with changing over the insurance to protect an investment property.
Changing Property Insurance over to Investment - Posted by Jake
Posted by Jake on December 15, 2004 at 14:38:24:
I bought a house a year ago as owner occupied, I am looking to rent it out, but want to know what implications go along with me switching the insurance to a Landlord Policy. Will my mortgage company make me refinance it as an investment property if they find out my insurance has changed to a Landlord Policy?
Re: Changing Property Insurance over to Investment - Posted by River City
Posted by River City on December 20, 2004 at 09:06:46:
Read your Security Deed document. It should state the occupancy requirements. Most indicate that the borrower should occupy the property for one year, unless the funding was a special first time buyer funding program, which could possibly require a longer residency. But, again, read the security instrument.
Re: Changing Property Insurance over to Investment - Posted by Dave T
Posted by Dave T on December 18, 2004 at 22:54:25:
I did exactly what you are asking four times in four years, quite a few years ago. I had purchased with an owner occupied loan program, occupied for about a year, then moved into my next owner-occupied financed house.
Not once, did the lender even object to converting to a rental. Once the one year occupancy requirement was satisfied, the lender did not seem to care how I used the property. The only concern from the lender was that the limit of coverage was sufficient to pay off the mortgage in the event of a total loss.