Non-Owner Occupied Homes
Many people like to buy second homes as investment properties and rent them out for extra income. If you can afford to do so, it’s a great way to have a long-term investment as part of your assets that will continue to bring in money. After all, there are always renters looking for a place to live.
Non-Owner Occupied Home Definition
This type of investment property is called a non-owner occupied home because you will not actually be living there even though you own it. If you’re going to look for a mortgage loan to buy a non-owner occupied home, there are a few things you should know first.
Non-Owner Occupied Mortgage Rates
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In fact, bankers and other lenders will often scrutinize mortgages in order to make sure that the borrower is honest when she or he says that the mortgage is for an owner-occupied home: experience has taught them that some people will try to hide the fact that they’re actually buying a second home so they can qualify for the lower non-owner occupied mortgage rates instead.
As with all real estate transactions, taking out a mortgage on a second home or non-owner occupied home comes with serious considerations you should think about before securing one. In order to be sure you understand all of the risks and regulations, speak to a mortgage specialist, such as the lending officer at your local bank.
