Mortgage Navigator • Conventional • Occupancy
Occupancy misrepresentation
“Just say you're going to live there” is not a mortgage strategy. Occupancy is a material fact in underwriting and pricing.
Why lenders care
Occupancy affects default risk, LTV limits, reserve requirements, pricing and product eligibility. That makes the borrower's intended use material to the credit decision.
Legitimate strategy vs. misrepresentation
Legitimate planning means choosing the correct program for how the borrower will actually use the home. Misrepresentation means stating a false occupancy intent to obtain terms the transaction would not otherwise receive.
MortgageDadOf3 rule: use agency differences and guideline exceptions aggressively when they are legitimate. Never solve a file by changing facts that are not true.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Occupancy must reflect the borrower's actual intended use. Misrepresenting occupancy can constitute mortgage fraud.