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Buying or Selling a Home/CHFA Loan (Connecticut FHA Loan)

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Expert: - 11/6/2007


Question
Hi Diann,
  I have a condo unit that's mortgaged with a CHFA loan.  Under this loan the unit has to be owner occupied.  I'm interested in now renting the unit so as to turn it into a business.  How can I go about this?  Thanks in Advance!

Answer
Hi, Alan.

Sorry to take so long to answer, but I actually went on my first vacation in over a year the past two weeks! :)

Anyway, in order to rent out this unit, you will need to refinance the loan. If you  don't refinance and if
FHA finds out that you are renting it out, you can be considered in breach of your contract and they can call the loan due and payable.

Perhaps you can contact your existing lender and find out from them about doing a refinance to an investor loan. They may give you a bit of a break on the fees since you already have a loan with them. The rates are higher for investors, and they do like to see a larger equity position, though hopefully you have had some appreciation since you bought the condo.

Hope this information helps and good luck! Many great real estate fortunes were started by turning a former primary residence into a rental property!  :)  

Buying or Selling a Home

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Diann Tonnesen

Expertise

I have over 25 years of experience in real estate in Las Vegas. I can answer almost any specific question about buying or selling homes, condos, high rise properties or land in the State of Nevada as well as general real estate questions that pertain to the industry as a whole. I can also answer questions related to financing on FHA and VA loans, conventional loans, interest only loans, stated income loans, and hard money lending. You can also go to my site at http://www.greatlasvegashomes.com which has lots of information on it as well.

Experience

With my husband I have been helping families call Las Vegas home for over 23 years and I still love it! We developed a strong niche in the Internet industry and had to start a team of agents to respond to the large volume of calls we were getting. Currently we have 18 full time agents, a sales manager, two leads managers and two transaction coordinators assisting us. Last year we helped over 280 families and investors find property in Las Vegas.

Organizations
Las Vegas Board of Realtors and the National Association of Realtors

Publications
PR Web, Las Vegas Review Journal, and interviewed for numerous magazines as well as a broadcast interview for television by CNN.

Education/Credentials
college journalism major

Awards and Honors
Top agent in the state of Nevada for sales multiple years when working for Century 21 and last year one of the top 10 agents in the country with Prudential.

Past/Present Clients
Just too many great clients to mention here, but I can certainly provide a long list of references on request. Or check out our web sites at:

Las Vegas Real Estate
Las Vegas Condos
Henderson Real Estate
Las Vegas Golf Course Homes

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