If I have 2 house on a single parcel lot in Sheboy...
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xiongcheexyooj
New Member

If I have 2 house on a single parcel lot in Sheboygan can I rent the other one out

Or will I get fined becasue I took a fha laon on the property.. the mortgage includes 2 single family house on a single lot. Thank you
2 Replies
Anonymous
Not applicable

If I have 2 house on a single parcel lot in Sheboygan can I rent the other one out

nothing in the tax laws prevents you from doing what you intend.  we can't answer the FHA part. 

Carl
Level 15

If I have 2 house on a single parcel lot in Sheboygan can I rent the other one out

There are no tax consequences. But there could be issues with the lender. It just depends on your loan agreement.

Typically, a loan taken for the purpose of purchasing a primary residence and/or second home will commonly have provisions that the property be used within the constraints of the loan type. For example, taking out a residential loan for commercial property would be fraudulent.

Typically if you take out a residential loan for a primary residence or second home, the loan terms require the property to be used as such for at least the first 2 years of ownership. Then after that if you move out and convert it to a rental you're not violating the loan agreement.

So overall your question is not a valid tax question. But it is a valid question for the lender. Check your loan agreement documents.

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