Owner Occupied?

[Lobo Fan]

I am working on one that is owned by Mom. A college son lives in the house with other room mates. Owner or tenant occupied? I know if I mark it tenant I am going to get some heat.

 

[Pamela Crowley (Florida)]

NON-owner occupied - unless the son is on the title.

It is ONLY owner occupied if the/a person that is on the title actually lives on the subject property.

 

[Rufus]

I know if I mark it tenant I am going to get some heat.

Do you realise the alternative is fraud?

I've not had a problem with this. Mark it tenant occupied and disclose the relationship of the occupant and the lack of rent. (Assuming there is no rent.)

 

[Mike Boyd]

FHA considers it owner occupied if son or daughter lives in it. All in the immediate family.

 

[Lobo Fan]

Not an FHA. Son pays no rent. I am leaning towards marking it tenant, with a comment about who is living there. Don't know what the room mates pay or to whom.

 

[Rufus]

FHA considers it owner occupied if son or daughter lives in it. All in the immediate family.

I did not know that. The only thing I could find at HUD's site was:

"Owner-Occupied" means a one-to-four unit property owned by a borrower whose principal residence is a dwelling unit in that property.

(My bold.)

But it is from a document dated 8/13/86.

Do you have a link to more recent information?

 

[Pamela Crowley (Florida)]

FHA can make whatever decisions they want, but the appraisal must state the facts as known.
Fact: if someone that IS ON THE DEED does not occupy the subject property, as in: lives there, the property is not owner occupied. Period.

 

[Lobo Fan]

That is very clear. Tenant occupied it shall be.

 

[PropertyEconomics]

Not an FHA. Son pays no rent. I am leaning towards marking it tenant, with a comment about who is living there. Don't know what the room mates pay or to whom.

Exactly how could you mark it anything else?

These are the exact things that get an appraiser involved in mortgage fraud ... and in this instance, you may be the only one committing fraud if you mark it owner occupied. Honestly Lobo the mere question boggles the mind .....

Ask your self this question ... Does the borrower live there?
Answer: No
Box Checked: Tenant ....

Who cares who gives you heat. Is the truth too hard to understand for all involved?

 

[RSW]

I would mark it tenant occupied and state that the son lives there rent free if he is not paying any rent. Who pays the utilities?