How do we turn our current home into a rental property?

by sing me a song

Question by Jessica C: How do we turn our current home into a rental property?

We are in the process of purchasing another home and would like to turn our current home into a rental property (we have already been approved to carry both loans). Our current loan is an FHA loan, and we have lived in the house for almost 3 years. Is it legal to do this with an FHA loan?

Also, do we have to change our homeowner's insurance, and is it more expensive for rental properties?




Best answer:

Answer by Sharon T
You have been in the first house long enough to convert it to a rental without jeopardizing your financing.

You will change the homeowners' policy into a tenant's policy. Be sure to get special form coverage (the best you can buy). The premium will probably be less but so will the coverage. Be sure to require your tenants carry a tenant's policy as well.

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