Occupancy

Occupancy refers to the current use and habitation status of a property, indicating whether it is owner-occupied, tenant-occupied or vacant at the time of appraisal or transaction. It is a basic but consequential data point in both valuation and lending.

In appraisal practice, occupancy status influences comparable selection, condition assessment and the applicable scope of work. For lenders, occupancy type directly affects loan program eligibility, interest rates and required down payment — with owner-occupied properties typically receiving more favorable terms than investment or vacant properties.

Misrepresentation of occupancy is one of the more common forms of mortgage fraud, making accurate verification a standard part of the underwriting process.