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Mortgage Glossary

Primary Residence

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A primary residence is the home you live in most of the year, and it qualifies for the lowest mortgage rates, smallest down payments, and tax benefits like the homestead exemption.

What Primary Residence means

Lenders price loans by occupancy because owner-occupants default less often than investors. Primary residences get the best terms, and most programs require you to move in within 60 days and live there at least a year. Misrepresenting occupancy is mortgage fraud.

Florida example

A first-time buyer in Orlando financed a primary residence with 3.5% down on an FHA loan and filed for Florida's homestead exemption, cutting the taxable value by $50,000 and capping annual assessment increases.

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