Most investors starting out in real estate start small, by purchasing single-home or small multi-unit buildings. As a result, the criteria for non owner occupied mortgages is different. When you enter the world of real estate investment, that all changes with the introduction of non owner occupied mortgages.Īs you begin searching for the first property in your portfolio, you might find the mortgage process rather bumpier for one simple reason: you won’t be living in the property you’re buying. The interest rates are low, the lenders are friendly(ish), and the whole process tends to be somewhat gentle. When a first-time homebuyer applies for a mortgage, the process is relatively simple…or, as simple as the mortgage process gets, at least. How Much Higher Are Non-Owner Occupied Mortgage Down Payments? With Scott Dillingham.Discover How To Apply For An Investment Property Mortgages With This Step By Step Guide.What Does “Non Owner Occupied” Mortgage Mean?.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.

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