– Owner occupied vs non-owner occupied loan. When refinancing investment or rental property, what is the difference in rate for non-owner occupied vs. owner occupied financing? Conforming non-owner occupied rates are typically 3/8% higher than owner occupied interest rates. The equity requirement is usually higher for non-owner occupied mortgages as well, typically 20-30%+.
Non-Owner Occupied – as non-owner-occupied mortgages are more likely to default. Because of the higher interest rate, some unscrupulous borrowers will try to classify a non-owner-occupied mortgage as an owner-occupied.
FHA may ease rules for mortgages on condos – Under the agency’s regulations, individual condo units in a building cannot be sold to buyers using FHA insured mortgages unless the property. of the units in a project or building be.