When the lender identifies the rental income of the property, the loan is eligible as a second home as long as the income is not used for qualification purposes and all other requirements relating to second homes are met (including the occupancy requirement mentioned above). Owners are buyers who occupy the property as the principal residence within 60 days of closing and who retain their occupancy for at least 1 year. Owner-occupier buyers are required to sign an owner-resident certification as the driver of the contract to purchase and sell residential real estate. If there are multiple borrowers, only a borrower must occupy the house to meet the individual occupancy requirement, but a co-applicant, co-signer or guarantor whose income is included in the credit authorization process is also subject to the owner occupancy rules when the combined ratio between credit and value exceeds 90%. Some borrowers may meet the occupancy requirement, even if they do not reside there. If the property has been in possession for at least one year but there are less than 365 days of fair rental on Schedule E, an up-to-date signed lease agreement can be used to supplement the federal income tax return; Or in order for the lender to determine eligible rental income, the lender must determine whether or not the rental property has been in service throughout the fiscal year or for part of the year. In some cases, the lender`s analysis may establish that the use of alternative rental income calculations or the use of leases to calculate income are more appropriate methods for calculating qualifying income for rental properties. This directive may apply to the refinancing of a rental property or other rental properties of the borrower. Fannie Mae imposes a variety of occupancy requirements on homeowners to put real estate in the hands of families and residents, unlike investors. Depending on the type of property, occupancy rules can vary considerably. Most owner occupancy contracts require you to move in within 60 days and live there for at least one year. In your situation, 3-5 years should not be the problem for most of the contracts I`ve seen. Moving to Spokane/Heart of Alene? We can help.

Fannie Mae offers its first look function as part of the HomePath program. Designed to promote residential property and neighbourhood stabilization, First Look allows owner-occupier buyers to offer closed real estate before these offers are available to non-owner residents and investors. The First Look window is 15 days from the day a home is designated as HomePath property, although the Nevada window is 30 days.