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What is an occupancy classification on a mortgage application?

General Mortgage Knowledge · 20% of the SAFE exameasy

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Correct answer: The designation of how the borrower will use the property: primary residence, second home, or investment

Occupancy classification determines how the borrower will occupy the property: primary residence (owner-occupied), second home (vacation/part-time), or investment property (rental). Guidelines, rates, and requirements differ by occupancy type. Misrepresenting occupancy is fraud.

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