Vacant or Owner Occupied?

[Kraftweit4]

Completed a refinance on a borrower's second home, which I marked as owner occupied. No one is currently living in the property but property is still fully furnished with personal items in each room and even a car in the garage. I'm getting a lot of pushback to mark property vacant. I clarified that property is currently unoccupied but not vacant. Am I missing something here? Would you honor this request?

 

[Terrel L. Shields]

It's not occupied for sure. Let me expand on that. Yesterday I inspected a house on the lake that is fully furnished with food in the refrigerator probably (no, I did not look.) Wine in the wine rack. the indoor pool is fully operational. It's a VRBO. No one was there. No one lives there permanently. The last occupants left Sunday evening. It is vacant.

 

[jay trotta]

Completed a refinance on a borrower's second home, which I marked as owner occupied. No one is currently living in the property but property is still fully furnished with personal items in each room and even a car in the garage. I'm getting a lot of pushback to mark property vacant. I clarified that property is currently unoccupied but not vacant. Am I missing something here? Would you honor this request?

More than likely, someone feels it is just stagged. Who does the field card show as the Owner? Deed?

 

[Red Flint]

I would have clarified that the property is occupied if I marked it occupied. Stand your Ground.

 

[Terrel L. Shields]

FHA

For a property to be considered owner-occupied, at least one borrower must live in the property as their primary residence and sign the mortgage note and security instrument. The borrower must establish bona fide occupancy within 60 days, and then live in the property for at least one year from the closing date.​

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FNMA

FNMA considers a property to be a principal residence if the borrower lives there as their primary residence.​

B2-1.1-01, Occupancy Types (10/05/2022)

This topic contains information on occupancy type requirements, including:

selling-guide.fanniemae.com

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[Larry Phillips]

It is a matter of perspective. You may wish to mark it 'vacant' then explain in the comment section discrepancy between photos and 'vacant' status.

 

[Kraftweit4]

It's not occupied for sure. Let me expand on that. Yesterday I inspected a house on the lake that is fully furnished with food in the refrigerator probably (no, I did not look.) Wine in the wine rack. the indoor pool is fully operational. It's a VRBO. No one was there. No one lives there permanently. The last occupants left Sunday evening. It is vacant.

Not sure if I follow this reasoning. If you inspected during a week long VRBO rental would you have marked it tenant occupied?

 

[Terrel L. Shields]

Not sure if I follow this reasoning. If you inspected during a week long VRBO rental would you have marked it tenant occupied?

NO. Read your FNMA and/or FHA. If the OWNER or one of the OWNERS is not living there as a permanent resident, then it is to be checked "vacant". Now since you've made up your mind and blinded by your cognitive dissonance, go ahead. Joust the windmills. But the underwriters are right. It is vacant.

 

[Kraftweit4]

NO. Read your FNMA and/or FHA. If the OWNER or one of the OWNERS is not living there as a permanent resident, then it is to be checked "vacant". Now since you've made up your mind and blinded by your cognitive dissonance, go ahead. Joust the windmills. But the underwriters are right. It is vacant.

No need to get upset, I'm just asking questions. FHA doesn't apply. Your quote from the selling guide doesn't clarify either, as this is a second residence for the borrower, which I stated in the original post.

 

[Fernando]

If client says it's owner occupied, then it's owner occupied.
I went to one house one time in which it was totally vacant except for the bedroom. Someone was living there with clothes in closet.
Fernando is not judgmental on people's lifestyle.