Is it legal for a mortgage company to prevent you from renting out your home?
I’m thinking of buying a home. The companies I’ve seen with the best rates all say that the property must be owner-occupied for the life of the loan. Mortgagees are allowed to have a tenant, as long as they also occupy the premises. No absentee landlords.
Are these provisions really enforceable? When you’re a homeowner, can’t you do what you want with your own property? They claim their motivation for this is that owner-occupants stabilize neighborhoods & I agree with that. However, it’s a scary thought that if I need to move, I won’t have the option of renting out the home instead of trying to sell it. Who knows what the market will be like in a few years. Sometimes renting a property out seems necessary, you know? It’s scary not to have that option.
So can these “rules” be enforced? Once you sign a mortgage, aren’t you able to decide these things for yourself, as need dictates?
I’m an honest person & wasn’t intending to commit mortgage fraud. It’s unfair to say that…it should be clear that I just don’t understand the rules, that’s all.
When you buy a house, you’re considered the homeowner, right? You don’t have to have your mortgage company’s permission to get a pet, but you would need your landlord’s permission if you were renting. And yet homeowners can be legally prohibited from renting out their home if unforeseen circumstances arose? I fully intend to inhabit the property but I didn’t like having my options restricted in case of an emergency or something. I mean, what if someone needs to move out of state in the future but for whatever reason the house won’t sell? It’s wrong to prevent them from renting it out since they’re the HOMEOWNER.
The companies offered low interest rates but had this clause in the contract. Just wanted to know if it was legal/enforceable & I still really don’t know.