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An owner-occupant is a resident of a property who also holds the title to that property. A home is a persons permanent primary residence to which they return, or intend to return. A Federal Housing Administration (FHA) loan is a mortgage that is insured by the FHA and issued by a bank or other approved lender.
Because of the bigger risk than the borrowers, financial lenders will generally require a larger down payment (20% 30%) from investment property borrowers wishing to apply for a non-owner-occupied mortgage loan.
Non-owner-occupied is a property classification in real estate for properties that are not occupied by their owners. Generally, the classification is only used in residential real estate. The term is commonly used for single-family homes and condominiums that are owned but rented to tenants.
What Is Considered owner occupied property ? A property is owner-occupied if the owner lives in the property. For example, if an individual buys a house and lives in the house while renting out the basement, the property is considered owner-occupied because the landlord lives in the property.
A non-occupant borrower is anyone, such as a parent, who is willing and financially able to be a borrower on the mortgage, but who will not live in the home. Sample Scenario: Loan Underwritten in Desktop Underwriter (DU)

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**Real Estate Investment Trusts (REITs)**: REITs are companies that own, operate, or finance income-generating real estate. The properties owned by these trusts are considered non-owner occupied because they are primarily used for business or investment purposes, not residential use.

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