Best interest rate when mom's financing the purchase + I will be on the deed

[Yasmin Mughal]

I'm starting a  househacking journey and my mom will be financing the home.  I am currently living off a small amount of self employment income, savings and 401k due to health issues so I don't go on the financing per my lender. I will be on the deed and an owner of the home. Originally, my lender said there wouldn't be an issue financing the home as a primary residence because I am on the deed and will be living there. Now he is saying that it's a "second home" mortgage (higher interest rate) because she won't be living there (but if I buy in MD, we still have to pay the state transfer tax because I have owned in MD before.) Come on now, it can't be cherry picked in both directions!

Any way around this?  My mother owns in another state but her home is paid for. Aside from the higher interest rate (I will pay the mortgage), one of the areas I'm looking in charges higher property taxes if it's not a primary residence. She is not going to change her residence "on paper" because she lives in PA where her retirement income isn't taxed by the state. 

[Jeff Chisum]

You would need to be on the mortgage as the main borrower.  She would be the non-occupant co-borrower.