Start with occupancy, then pick a qualification path. A rental you will not live in is not a second home on paper. Snapshot as of 2026-08.
Occupancy is about how the applicant will use the property. It is not a statement about who should live in a neighborhood. Protected-class steering has no place on these pages.
| Question | Occupy one unit (house-hack) | Do not occupy (investment) |
|---|---|---|
| Occupancy | Primary. FHA and many conventional 2–4 unit purchases require you to live in one unit. | Investment. Second-home occupancy is exclusive personal use — not a rental business label. |
| Typical qualification | Borrower DTI plus a worksheet on the unit you will not occupy. FHA 3–4 units add self-sufficiency. | Full-doc borrower DTI, or DSCR on the property’s rent versus the payment. |
Educational snapshot. Not occupancy coaching.
Guides in this cluster
- First rental: occupancy if you still live there — stay-put rental is investment occupancy. Not a duplex house-hack.
- DSCR vs full-doc rental loan — property qualifies vs borrower qualifies. Calculator: DSCR illustration.
- Second home vs investment occupancy — three occupancy types. Commercial: second-home overview.
- Cash-out to buy a rental — two LTVs, two occupancies. Compare structure on HELOC vs cash-out.
- Delayed financing after a cash purchase — agency exception when you bought with cash, then want a mortgage later. Not HELOC seasoning.
- House-hacking a duplex with FHA — occupy one unit. Self-sufficiency is a 3–4 unit test.
- Schedule E rental income — history on properties you already own. Depreciation add-back: what agency files allow.
- Cross-collateral / using equity to buy another house — educational; not a published agency product you can assume.
- Reserves: months of PITIA — investment and 2–4 unit files commonly need more remaining assets after cash to close.
- Non-QM hub — bank-statement, DSCR, and asset-depletion as different stacks.
Common questions
Guides in this cluster
Occupancy is the first question
Bring how you will use the property, not a requested rate. Investment pricing is file-specific.
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