Primary residence
The home a borrower lives in as their main residence. Lenders apply the most favorable terms to primary residences: lowest rates, lowest down payments, and the broadest program availability. Second homes and investment properties have stricter requirements and higher rates. Misrepresenting an investment property as a primary residence is mortgage fraud.
How does this affect your loan? Estimate self-employed qualifying income with the
DTI calculator, or read the
self-employed mortgage guide.
Related terms
- PITI — Principal, Interest, Taxes, and Insurance — the four components of the full monthly housing payment. Principal…
- Appraisal — An independent assessment of a property’s market value performed by a licensed appraiser hired by the lender.…
- Escrow — An account managed by your loan servicer that collects a portion of your monthly payment to cover property tax…
- Title insurance — Insurance protecting the lender (and optionally the buyer) against claims against the property’s ownership his…
- Earnest money — A good-faith deposit made when your offer is accepted, demonstrating serious purchase intent. Typically 1–3% o…
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Sources
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.