“Owner-Occupied” is a big deal in the home loan globe for many reasons:
Interest levels tend to be more compared to a 1/2 % reduced it go into foreclosure than they are for investment properties b/c there is less risk lending to an owner-occupant who will take better care of the property and be much less likely to let.
Numerous loan programs like FHA funding are just designed for owner-occupied borrowers; and
Advance payment needs are much lower for owner-occupied properties.
PROOF OF OCCUPANCY
Lenders of course want proof that a residential property will actually be owner-occupied. Listed below are a few things they determine:
Other domiciles. If borrowers very very very own other, nicer or bigger houses, loan providers will likely be really suspicious in case a customer claims he desires to transfer to a smaller or home that is inferior. Lenders of course enable this however they will demand a strong page of description.
Proximity to work. This is actually the other factor that is major review however they are so much more versatile now in a post-COVID globe b/c so numerous workers are now able to work remotely. Several years ago, borrowers must be inside a commute that is“reasonable” of the manager (and so they nevertheless do if their tasks are hands-on of some kind, e.g. factory work). But nowadays, all workers want to do is obtain a page or even a verification from their company that states they’re permitted to work remotely as well as can more or less purchase in just about any location they want so long as they will have internet access 
. We in fact see this all the time now.
PRINCIPAL TAKEAWAY: Borrowers can buy “owner-occupied” very nearly any place in the U.S. now provided that they could obtain a page from their manager that states 100% remote work is kosher. Self-employed borrowers will have to show that their company will never be adversely influenced by a remote location. Læs mere Owner Occupancy Criteria In A Post-COVID World; 2nd Residence Rates Higher Now