Can conventional mortgages have a clause to prevent reting of property

Yes they can. If you are obtaining a conventional mortgage on a second home (sometimes called vacation homes), there is usually a provision that prevents you from converting the home to a rental. This is intended to prevent people from applying for a second home mortgage which has more favorable terms and then renting it out, instead of applying for an investment property mortgage. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Some can stipulate this ....most do not

For conventional mortgages, if you purchase as your primary residence, you must move into the home within 90 days, and it must be your residence for at least 1 year, after that you can rent it out.. If you purchase the home as a 2nd home, then you have to wait 1 to 3 years.. I have never seen a 2nd Home Ryder state you can NEVER rent out your vacation home.. I'm not saying it does not exist, it's just that most will say you cannot for the first 1 to 3 years.. (the rules are different if you live there but also have boarders, which can be allowed) That being said, one area of loan fraud was investors purchasing homes as a 2nd home but with the intent to rent it out.. for this reason, lenders will be cautious and will scrutinize every aspect of your file to be sure. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

A Conventional mortgage can have all sorts of clauses. Yes one of them can be this. It could be a on a 2nd home or primary residence.

Absolutely and this happens quite a bit on Second homes.

You will sign a disclosure stating you will occupy the home. If you rent it the lender can call the note due.

Yes. Rental homes have higher default risk.

Yes, they find out when you Insure the property. Sometime there is a clause that indicates if they find out it is a rental property, they can raise you rate

Yes they can

Hello - as noted by others, there very well could be such a clause ( on many primary residential mortgages, they may prohibit such for a certain period of time - like one year) to make sure you actually use the home as primary residence. On second homes, there may be a similar restriction, just to make sure you aren't "gaming" the system (as others mentioned). This might not apply ifyou only rent it out for one to two weeks a year -- beyond which there may also be tax consequences.Your best solution is to talk to a local, licensed mortgage professional, and explain your situation, and what you are trying to do - so they can provideyou with the best information possible for your conditions (I believe my associates at Bay Equity there in California could help you.)