Occupancy Type
Occupancy type refers to how the borrower intends to use the property being financed — typically classified as primary residence, second home, or investment property.
Your occupancy type directly impacts loan pricing, down payment requirements, interest rates, and available loan programs. Primary residences receive the most favorable terms, while investment properties carry higher rates and stricter qualification standards.
Misrepresenting occupancy type on a mortgage application is considered fraud. If you intend to rent the property or use it seasonally, you must disclose that upfront. Loan programs are designed around how the property will actually be used.
Why This Matters: Occupancy type is one of the first questions your lender will ask — and it shapes the entire loan structure. Being upfront from the start ensures your loan is priced correctly and compliant with program guidelines.
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