Occupancy

Occupancy is the classification of how a borrower will use a property: primary residence, second home, or investment.

What Occupancy means

Occupancy drives rate, down payment, and program eligibility, since primary residences carry the least risk. Misstating occupancy is fraud.

Florida example

A Florida buyer's owner-occupied loan offers better terms than a second-home or investment loan. The lender may verify occupancy after closing, so the stated intent must be genuine.

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