USDA

I don't believe there is any specific clause that states you can't eventually rent it out. I just closed a USDA loan and don't recall ever seeing anything like that in the closing package. But you would have signed a document stating you intended to occupy the property for at least 1 year after closing on your USDA loan. There may be some confusion, as the scenario you're suggesting DOES apply to Utah Housing loans at any time you carry the loan.

Read your note.. it should detail your occupancy requirements, and my guess is that so long as you have lived there for at least a year, and your move is necessary, you should be ok to rent it out... so long as the payments are being made on time, you should be ok.. if you want ot know for sure, you should contact a real estate attorney. 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

I've never seen a note that prevents you from renting out the property after you've lived there at least one year. The "don't allow" is at the time of purchase. USDA does not offer investment loans.

As long as the bank is getting their money on time I wouldn't think it would be an issue but I would look through your loan docs to be sure. All the best!!

I would be very careful, i have working for numerous lenders, and yes, they do go and knock on doors ,and if they get a whiff of something not right, they can call the note.. I worked with the private investigators at certain banks.. the best advice I c an give you, if NOT TO CHANGE your bank, or bank address ... that is a dead give away...

Hi Roy,There may be a different answer if you have USDA Direct Loan versus a USDA Guaranteed Loan. On the USDA Direct, you would need to contact your local USDA office. If you have a USDA Guaranteed loan, USDA is not going to penalize you if you have to "move" out or relocate and rent out your property. USDA is a make sense loan, but they also don't want you to intentially have multiple rental properties.

What state are you relocating to ? Give me a call and we can help expedite the process of financing your new home.Mark 800-485-1387 Extension 107