---
title: "Occupancy type — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/occupancy/
---

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- Occupancy type
Investing[All terms starting with O](/glossary/#letter-O)

# Occupancy type

Also called: primary residence, second home, investment property

How you will use a property (primary residence, second home, or investment), which drives pricing and program eligibility.

Occupancy is a core underwriting factor. Primary residences generally receive the best pricing and lowest down payments; second homes sit in between; investment properties carry the highest requirements.

Occupancy is certified at closing, and misrepresenting it on a loan application is a serious matter, not a technicality.

## Related terms

- [House hackingLiving in one unit of a property while renting the others, using owner-occupied financing to buy an income property.](/glossary/house-hacking/)
- [UnderwritingThe lender’s review of your credit, income, assets, and the property to decide whether the loan can be made.](/glossary/underwriting/)
- [DSCR loanAn investment-property loan qualified on the property’s rental income rather than the borrower’s personal income.](/glossary/dscr-loan/)
- [VA loanA mortgage guaranteed by the Department of Veterans Affairs for eligible service members, veterans, and some surviving spouses.](/glossary/va-loan/)

## Go deeper

- [Second home vs investment occupancy](/blog/second-home-vs-investment-occupancy/)

## More in Investing

- [1% rule](/glossary/one-percent-rule/)
- [1031 exchange](/glossary/1031-exchange/)
- [50% rule](/glossary/fifty-percent-rule/)
- [Appreciation](/glossary/appreciation/)
- [CAGR (Compound Annual Growth Rate)](/glossary/cagr/)
- [Cap rate (Capitalization rate)](/glossary/cap-rate/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)