Owner Occupied Loans

[Felix Piper]

Whether FHA or conventional, what type of proof do you have to give that you will occupy a property to qualify for owner-occupied loans? If someone were to purchase a multi-family property (2 - 4 units) with the intention of living in one of the units, would that qualify for owner-occupied loans? What happens if they don't end up living there?

[Scott E.]

What type of proof do you have to give that you will occupy: Your word. There isn't much you can do to prove you will live there other than tell your lender that you will be living there. They will do a full underwrite on you, your credit, your income, etc and internally they will determine if there are any red flags.

If someone where to purchase a 2-4 unit with the intention of living in one of the units would that qualify for owner-occupied loan?: Yes

What happens if they don't end up living there?: I'm reading between the lines here, but what you're really asking is "what happens if I commit mortgage fraud?" The answer - Up to 10+ years in prison.