There are steep penalties for borrowers who file false certifications lenders can call the loan and foreclose if the borrower cannot pay. The real estate agent also signs the form and files it with the sales contract. The borrower must occupy the home as their primary residence for 12 months.īuyers sign a HUD-9548D, which is an Owner-Occupant Certification form.The borrower will move into the home within 60 days of closing.Lenders expect two things when they make loans on owner-occupied homes:

There are usually lower down payment requirements and lower interest rates when a borrower is financing a primary residence. When it comes to conventional loans, owner-occupied properties usually get more favorable terms than loans for investment properties. VA and USDA loan programs are also reserved for owner-occupied properties. The Federal Housing Administration (FHA), for example, will only insure owner-occupied homes. Generally, for a property to be owner-occupied, the owner must move into the residence within 60 days of closing and live there for at least one year.Owner-occupied status is an important consideration when financing a property. The application will usually state, “The borrower intends to occupy the property as his/her primary residence,” or some variation thereof when the borrower will be an owner-occupant. Some types of loans may be available only to owner-occupants and not to investors. When applying for a mortgage or refinancing, the lender will need to know if the borrower is going to be an owner-occupant or an absentee owner. Department of Housing and Urban Development (HUD) offers special programs for those who plan to be owner-occupants, such as the Good Neighbor Next Door Program, which offers a discount to first responders who live in a property for at least three years.

To be considered owner-occupied, residents usually must move into the home within 60 days of closing and live there for at least a year.

Some loans are only available to owner-occupants and not absentee owners or investors.

Owner-occupants are residents who own the property where they live.

What does occupied mean