Owner-Occupancy Financing

The easiest, safest, and lowest-cost way to borrow nearly all of the money you need to buy a home involves owner-occupied mortgage financing. Many high-LTV owner-occupied loan programs are readily available on single-family homes, condos, townhouses, duplexes, etc that offer 95-100 percent financing.

Owner-occupants pay lower interest rates than investors. To qualify, you must tell the lender that you intend to live in the home for at least one year. For investors, the strategy would involve living in the home for one year, then renting it out, and repeating the process. You could also move into a new property and find a good tenant for your current home.

^McLean, Andrew, & Eldred, Gary W. Investing in Real Estate. 5th ed. New Jersey: John Wiley & Sons, Inc, 2006