Primary Residence — A Simple Definition

Primary Residence — A Simple Definition:

When getting a mortgage, one of the factors that will influence the rate and terms of your loan is whether or not you will occupy the property as a primary residence. Generally speaking, the best deals on mortgage terms are available to people who are going to occupy the property as their primary residence. Also, generally speaking you can only have one FHA insured loan at one time.

Primary Residence — An Expanded Definition:
When getting an FHA loan, it is generally not possible to have more than one FHA loan per borrower. Anyone who owns a home (either alone or with someone else) that is insured by FHA generally can’t get another FHA insured loan except under the following circumstances:
Relocation – if you are relocating to another area that is not within a reasonable commuting distance from your current home, you can get another FHA loan without being required to sell your existing home that currently has FHA financing.

Increase in Family Size – You can get another home with an FHA loan if you have an increase in the number of legal dependents where your present house no longer meets the family’s needs. If this is the case, you must pay your current FHA loan down to 75% LTV and a current appraisal must be used when determining the 75%.

Vacating a Jointly-Owned Property – If you are getting divorced and are moving out of your house that is currently financed with an FHA loan, you can get another FHA loan if you can qualify for it financially.
Non-occupying co-borrower — A non-occupying co-borrower on a property that is being purchased with an FHA-insured mortgage as a primary residence by other family members. This is often the case with what is known as “FHA kiddie condo loans”.

Primary residence.
It matters whether the property you are buying is going to be your primary residence or not. When getting a conventional loan, it matters for the rates and terms of the loan and when getting an FHA loan, it often matters whether or not you can get a loan at all.


Contact The Mortgage Mark with any questions!

http://www.themortgagemark.com mwilkins@capitalfmc.com