What a Primary Residence does for you
Primary residences qualify for the lowest mortgage rates. In order for a home to qualify as your primary residence, these are some of the characteristics that must be met:
- You must live there a majority of the year.
- It must be a convenient distance from your place of employment.
- You need documentation to prove your residence. You can use your voter registration, your tax return, etc.
If you plan on turning the property into an investment property within six months of closing, it must be classified this way. This could happen if you plan on having a tenant rent the property.
In addition to these criteria, the property must be occupied by the buyer within 60 days following closing. If the loan in question is originated through the VA and you’re on active duty, your spouse can satisfy the occupancy requirement.
Mortgage interest on your primary residence is deductible. If you took out your mortgage after 2006, you can also claim your mortgage insurance payments as part of the interest and deduct them.
That’s all, folks! Hopefully this has helped you understand a little bit more about property classification and home mortgages.
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More Information about owning a home and a home mortgage
Consumer Financial Protection Bureau
Owning a Home