A friend currently owns one home which he wont be selling and will rent. He wants to finance another home and move into it. Will this be counted as a primary occupancy or investor deal. Hes concerned investor deals are very dry currently.

His credit is 800+, income 120k, assets 200k, current mortgage 200k. HOme he plans on buying is 180k. Anyone see any issues? Thx.

Only his lender can say for sure, especially if he has a mortgage on the first property.

Here in Vermont, you specify whether the acquired property will be used as a Primary Residence (your Homestead, and where you'll Vote from).

Our Property Transfer Tax is preferential on a Primary Residence (only 0.5% VS 1.25% on a 2nd Home; Vacation Property, or Commercial/Investment), so many people are tempted to say it'll be a Primary, even when it won't.

Our Taxation Department has a Collection Goon Squad that follows up and comes out to visit Buyers and wrings the additional Transfer Tax out of the Purchaser if he/she has made a false statement . . . . or they put a Lien on the Property and get you later.

In these times of Budgetary Shortfalls, many States are looking for new revenue streams and other existing sources of taxation which haven't been fully exploited.

But I digress.

If he will move into the new home it would be a primary residence. It is that simple.

I will act as an underwriter and ask what his intentions are with the old home? Why would he be making this move?