1. Purpose and Eligibility: A primary home mortgage is a loan used to purchase a primary residence, where the borrower lives most of the time. These mortgages typically offer more favorable terms and interest rates compared to loans for secondary homes or investment properties.
2. Mortgage Interest Deduction: In many countries, including the United States, homeowners can deduct mortgage interest on their primary residence from their taxable income, which can provide significant
tax savings.
3. Occupancy Requirements: Lenders often have occupancy requirements for primary home mortgages. Borrowers must occupy the property as their primary residence within a certain period after closing, typically within 60 days, and maintain it as their primary residence for a set period of time.
4. Loan Options: Primary home mortgages offer various loan options to suit different borrowers’ needs, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), and government-backed loans such as
FHA and VA loans. Each type has its own benefits and eligibility criteria.
5. Lower Down Payments and Costs: Borrowers purchasing a primary home often have access to lower down payment options and reduced closing costs compared to investment properties. Programs such as
first-time homebuyer assistance may also be available to help with down payment and closing costs.