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Comment by jmvoodoo | Hacker News Reader

Lenders in the US offer loans for investors that are still not commercial loans. They have a higher interest rate than a loan against your primary residence. There is regulation preventing you from using a primary residence loan for an investment property, and lenders will enforce it.

Commercial loans are not typically used for things with 4 units or less, however they are required for non-residential builds and for multifamily >4 units.

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I thought in the US if you lived in a home for several years you could move out and start renting it out without refinancing for some reason. Do you have a resource for more info about this?

You can't get a primary mortgage for a rental. There is a time term in the note, like you have to occupy for at least two years.

You can use a cash -out refi on your primary and use those proceeds for a rental (but you'll need lots of equity).

One can also get non-commercial loans to buy rentals but the terms (eg LTV, rate) are steeper than for primary.

You can turn a primary residence conventional mortgage property into a rental after 1 year of owner occupancy. FHA and VA are the same.

An FHA loan requires you to live in the property as a primary residence for 12 months. After that, you can move out and use it as an investment property.

https://www.lendingtree.com/home/fha/

Interesting. Did not know that. Thanks!

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