Ace the IREM Certified Property Manager Challenge 2025 – Unlock Your Property Potential!

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What type of documentation do banks often require regarding owner occupancy?

Proof of personal income

Evidence of owner/occupancy

Banks typically require evidence of owner occupancy as a safeguard against risks associated with loans, particularly in residential properties. This documentation helps verify that the borrower is living in the property they are financing, which can influence loan terms and interest rates. Owner-occupied properties are often viewed as less risky investments for lending institutions, as the homeowners have a vested interest in maintaining the property.

In cases where the property is an investment or rental property, lenders may impose stricter criteria, including higher down payment requirements or different interest rates, because these properties do not have the same level of commitment by the owner. Therefore, providing evidence of owner occupancy assures the bank that the mortgage will likely be paid as the homeowner is directly invested in their residence.

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Lease agreements from tenants

Marketing materials for the property

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