user8943875's Advice

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user8943875 wrote:

Under what circumstances can I rent out a condo with a CFHA loan?
I am going to be buying a condo soon as a first time homebuyer. I am trying to decide between a CFHA loan (Connecticut FHA program) and a conventional mortgage. There is over a percent difference in the interest rate. My plan is to buy a condo, live in it for a few years, and then rent it out when I outgrow it and/or get married. I have been told that the CFHA loan is owner-occupied only and that I couldn't rent it out if I have this loan. I would have to refinance first. So, I have been considering getting the conventional mortgage now so I can rent it out without refinancing because who knows where interest rates will be then. But I have been doing some research online and some places say that the CFHA loan only requires owners to occupy the residence for a certain amount of time (i.e. 1 or 2 years). Is this true? In that case, I could get the CFHA loan now with the lower interest rate and rent it out in a year or two without a problem and without the need to refinance. I would definitely like the option of rental income without the expense of a refinance. Can I do the CFHA loan and then rent it out in a year or two? I hope my question is clear enough.P.S. I am putting 20% down so no PMI.
August 19 2013