Understanding NonOwner Occupied Loans (Real Estate - Home Improvements)

Item ID 14450024 in Category: Real Estate - Home Improvements

Understanding NonOwner Occupied Loans

Real estate lenders need to accurately classify property to determine the interest rates they will charge to borrowers and ensure that they are compensated for the risk they take when lending money to purchase it. A mortgage on a property that is not owned by the owner might have a higher interest rate than one on an owner-occupied home. Because non-owner occupied property borrowers are more likely to default on mortgages.

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