What is Owner-Occupied vs. Investment Property?
Owner-occupied means you live in the home as your primary residence, while an investment property is one you buy to rent out or resell rather than live in. The distinction affects loan terms, down payment, interest rate, and taxes — owner-occupied loans are usually cheaper and easier to get. Lenders verify how you intend to use the property.
Example: A buyer gets a lower rate and smaller down payment on an owner-occupied loan; when they later buy a rental, the investment-property loan requires more down and a higher rate.