Reply to no-renting clause on mortgage?

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Reply to "no-renting clause on mortgage?"

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[quote=Anonymous]Another potential, is if this is in a condo building, coop, or other association that has a minimum required number of owner-occupants.  I know on one local community that includes SFH that is a coop and has certain government, tax, and liability restrictions that require a certain percentage of owner-occupants.  If the level of renters is high enough, they put that clause in the mortgage agreements (you have to use one of the coop's approved mortgage lenders) in order to ensure that they don't lose some of the liability coverage and tax status.  You should talk with the mortgage lender to find out why the clause it there and if it can be removed.  I have also heard this frequently with certain condo associations.  You really don't want to buy, rent out your unit against your mortgage documents and find out you are the reason why your HOA or Condo association loses its liability insurance or that suddenly taxes for the whole community goes up because you were in some sort of affordable rate housing development that had tax guarantees based on owner-occupency.[/quote]

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