Occupancy Exceptions for Conventional Loans

Did you know Conventional loans allow for occupancy exceptions in certain circumstances? Occupancy exceptions can be made for borrowers buying a home for a child or parent to qualify with owner-occupied terms. Lower down-payment requirements and preferred pricing are just a few benefits of owner-occupied financing.

According to Lumen Mortgage, there has been a spike in the number of borrowers wanting to help provide housing for their family members: Children wanting to provide housing for aging parents, parents wanting to provide housing for adult children, and even extended family or friends wanting to help someone they know to buy a home.

Non-occupant co-borrowers can help occupant borrowers qualify for financing when the occupant’s income is not enough.

Mortgage Market

The average 30-year fixed mortgage rate increased by a quarter percent over the past month. The next Fed meeting begins on the 19th when another rate hike may occur.  

Average Rates (as of September 1st, 2023)

Residential 30-Year @ 7.18%

Multifamily 5/30 @ 6.72%

Agricultural 25-Year @ 6.95% 

Lumen Mortgage has a full spectrum of financing for Residential, Multifamily, and Agricultural properties.