Fannie Mae & Freddie Mac – Occupancy Rule: I have a married couple where one is relocating for work and the spouse will be renting in their current town where he is employed until he finds a job in their new hometown. Will this be an occupancy issue with a minimum 3% down file?
Answer: The short answer here is that you can do this loan either Fannie or Freddie and as long as the loan is done through DU or LPA and is not manually underwritten. Only one of the borrowers needs to occupy the property for it to be considered a Principal Residence. (The whole non-occupant co-borrower [...]