First property mortgage

[Thomas Bennett]

I came across this home for sale that I'd like to buy for my sons, they will be paying for the mortgage.. I was told there's different rates because its going to be considered a rental ? Will I get a better rate if my family will be occupying the home?

[Michael Dumler]

@Thomas Bennett, your sons will technically be your tenants. Yes, there is a difference in rates and fees for an investment loan vs. an owner-occupied loan. In your particular case, however, it does not matter that your family will be occupying the home, you would still need to qualify for an investment loan to purchase the property. Furthermore, I believe there are a handful of tax codes/rules when it comes to renting to family members so make sure you're aware of those. Feel free to reach out to me via cell, text, email, etc. and I can connect you with several local lenders to help out if interested (contact info listed in my bio).