Principal Residence Properties
A principal residence is a property that the borrower occupies as his or her primary residence. The following table describes conditions under which Fannie Mae considers a residence to be a principal residence even though the borrower will not be occupying the property.
|Borrower Types||Requirements for Owner-Occupancy|
|Multiple borrowers||Only one borrower needs to occupy and take title to the property, except as otherwise required for mortgages that have guarantors or co-signers. (See B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction.)|
|Parents or legal guardian wanting to provide housing for their handicapped or disabled adult child||If the child is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the parent or legal guardian is considered the owner/occupant.|
|Children wanting to provide housing for parents||If the parent is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the child is considered the owner/occupant.|
For additional information, see B2-1.1-01, Occupancy Types. For the maximum allowable LTV/CLTV/HCLTV ratios and representative credit score requirements for principal residence properties, see the Eligibility Matrix.