Resources > Glossary > Owner's Occupancy Agreement

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Owner's Occupancy Agreement

Function: noun

The Owner's Occupancy Agreement is similar to an Occupancy Affidavit. The Occupancy Affidavit is for the borrower to swear that they will be living in the property they are borrowing for rather than leasing the property to a third party. It is common for individuals who are investing in a second or third property to misrepresent themselves on this document by claiming to intend to reside in a particular property, as it could reduce their interest rate by roughly half a percent. Another option on the occupancy affidavit is to claim that the property is going to be a second residence which also might result in a decreased interest rate. Another possibility, is that the borrower lives in the property for one year, and then rents the property out, which might be acceptable to the lender. Lying on the occupancy affidavit is commonplace and could have consequences in the long run if the lender ever researches who is actually living in the property.