Freddie Mac Home Possible "Primary Residence" requirement

[Account Closed]

Hello All,

I'm very interested in taking advantage of Freddie Mac's Home Possible program in order to purchase a multifamily 2-4 unit property. One of the requirements was that it would have to be my primary residence. Now does this mean permanent primary residence or can it be I make it primary residence for 6-12 months and then I can purchase another property and make the second property my primary. If anyone can give me insight that would be great. I'd love to utilize Home Possible because of the 5% down payment for a conventional loan, vs 3.5 FHA.

[Zack Karp]

@Account Closed when you close on a primary residence in IL, regardless if it's Fannie, Freddie, FHA, VA, or USDA, you are signing a MORTGAGE Form 3014 that says you will be occupying the property within 60 days and for 1 year. Here is the actual wording:

Occupancy. Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.

After that, you are free to house hack to the next property.  Hope that helps!  I'm local here in case you have any other questions.  Best of luck!