3% down conventional loan able to be rented?
I have a conventional loan with just 3% down does that automatically put me in the 97 program? And would I ever be able to rent the home at any point?
- curtisports2Lv 73 months ago
The mortgage documents will address your ability to use the property as a rental. In the vast majority of conventional residential mortgages, it is explicitly stated that the property must be owner occupied, and if it is used as a rental without lender approval, the note can be immediately called due and payable.
- STEVEN FLv 73 months ago
A CONVENTIONAL loan requires more then 3% down.
99% of home mortgages include a provision for the property to be owner occupied. If you intend to rent the property, you MUST get the lender to agree to remove that clause. There are ZERO lenders in the US that will approve a mortgage for investment property with ONLY 3% equity.