Mortgage lenders commonly offer more favorable lending terms, such as lower interest rates and larger seller credits, for properties designated as owner-occupied or second homes than for properties classified as investment properties.
October 24, 2025
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This describes a general lending practice used in mortgage underwriting and pricing.
Loan terms and underwriting availability can differ based on whether a property is represented as a primary/second residence versus an investment property, with some favorable loan terms typically unavailable for investment properties.
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Residential mortgage lending differentiates between owner-occupied and investment properties for pricing and eligibility