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Does a conventional loan require it be owner occupied?

by lafferld629 from Livingston, Texas. Jul 31st 2017 Reply


Cody Velkovich (Cody_NRL)
#167 ranked lender in Texas - 89 contributions

No, a Conventional loan does not require owner occupancy, however, you would need to voice your intentions to your lender upfront. Other occupancy statuses, such as Second Home or Investment Property, have different down payment and other requirements than an owner-occupied Primary Residence purchase.

Jul 31st 2017
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,918 contributions

No.. you can purchase it as an owner occupied, 2nd home, or investment property.. all using conventional financing.. the guidelines do vary as does the loan to value, interest rates, reserves, etc.. but in general, you can use conventional for a multitude of different purchase options. . I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Aug 1st 2017
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Jason Vondrak (jvondrak)
#2 ranked lender in California - 1,714 contributions

There are three basic forms of occupancy allowed under a conventional loan. "Primary" occupancy means the mortgage holder/owner occupies the residence. For your home to have "Second Home" occupancy status, it can only be occupied by the mortgage holder/owner, usually part time. If anyone else besides the owner lives in the second home, even rent free, it is considered an investment property by Fannie Mae and Freddie Mac. "Investment" status allows non-owner occupants, with or without financial gain from those occupants, and often involves a higher interest rate.

Aug 1st 2017
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,519 contributions

Conventional, which simply means not a government loan like FHA or VA offers loans for your primary home, a second/vacation home, or rental property.

Aug 1st 2017
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