Hi,
I want to know do each state have different laws on this.
Ex. I am a current homeowner (lived here many years) with mortgage or refinancing…I want to buy another house and move there, but want to rent out the current home (single family).
Is there different state laws on this?
thanks
No law against renting a property you own.
May not be ok with your current mortgage holder. Some have a due on … clause that if you are not occupying the home the mortgage is immediately due and payable.
Plus, you may be too attached to the home and its condition to rent it out. What happens when they trash it. It is when not if.
Will it make a good return. Cheap houses make better return, you might be better off to sell it and buy three cheap houses to rent out.
@Arlanj, thanks for the response!
So there is no law about this?
I mean if I am paying the mortgage on the current house, that shouldn’t really make them put a due-on…
I am not worried about the attachment.
I am working out scenarios right now. I am not a homeowner yet. I am still doing my research and asking questions 
Not about the law. Its about a loan contract.
If you get a loan for a house that you intend to occupy and then move out and let someone else live there, it is possible that the loan may be called. If the bank finds out. They are lending to a homeowner intent on living in the home, not a tennant.
There is a difference between a home owner loan and a commercial loan. Just as there is a difference between homeowners insurance and commercial insurance on rental property.
Almost like in my rental agreements I have a clause that says “NO SUBLETTING”. I dont want the tennant bringing in other people or moving out and letting the friend stay there.
So there is no law about this?
No, there is no law that keeps you from turning your primary residence into a rental.
As a general rule, if you used an owner-occupied loan to finance the purchase of your house, you signed a statement certifying your intent to occupy the property as your primary residence at least one year. After that year is up, you are usually free to convert the property to a rental without affecting your mortgage loan.
If you used a low interest rate loan program that was funded by state bonds, you may have an owner occupant obligation up to 15 years. If you bought a home under the federal tax credit program that gave you up to $8000 back as a tax credit on your tax return, then you have a three year occupancy requirement owtherwise you have to pay back the full amount of the tax credit.
How long you have to maintain owner occupancy after your loan closes is a contract issue. If you breach the contract (your loan agreement), the lender’s typical recourse is to call the loan due and then foreclose if you don’t pay up. No one is going to put you in jail for putting a renter in your home before you pay off your owner-occupied loan.
thank you for the answers!
Dave T -
Thanks for an a great response.
Jim
Dave T -
Thanks for a great response.
Simonsayz - Looks like you have your first rental so congrats.
Jim