Mortgage  Question?
Is mortgage for relative second home or non owner occupied?

We are buying a home for our daughter to live in. Although we will not live in the property we are not going to rent it. From a mortgage standpoint, would the property be considered a second home or non-owner occupied property?

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

As long as the property is located in a different county than your primary residence then the mortgage should be classified as an owner-occupied mortgage on a second home. There are some lenders that may classify the mortgage as an owner-occupied loan even if the property is located in the same county as your primary residence; however, this is relatively uncommon. Because you are not buying the property with the intent to rent it out, the mortgage should not be considered a non-owner occupied loan (as long as the property is located in a different county than your primary residence), which means your mortgage rate should be slightly lower. Please note that because you are applying for the mortgage as a second home, your ability to qualify for the loan depends solely on your credit score, debt-to-income ratio and other borrower qualification guidelines as opposed to any rental income generated by the property. Lenders require you to demonstrate that you can afford the mortgage on both your primary residence as well as your second home.

Regardless of how your mortgage is classified, we always recommend that you contact multiple lenders to understand how they would handle your unique situation. You can compare lenders in your area by clicking INTEREST RATES We advise you to contact at least four lenders as qualification guidelines vary. Plus, comparing multiple lenders is the best way to save money on your mortgage.

« Return to Q&A Home
Current Mortgage Rates as of July 23, 2019
  • Lender
  • APR
  • Loan Type
  • Rate
  • Payment
  • Fees
  • Contact
View All Lenders


Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click for more information on rates and product details.

About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR. More about Harry

Harry Jensen LinkedInLinkedIn | Email Harry JensenEmail