Does the property need to be owner occupied?
The HEFI Agreement is primarily intended for owner-occupied residences; other occupancy types are permitted under other circumstances where prescribed or permitted by certain federal or state laws, such as military transfers or employment transfers. The HEFI Owner may choose, at its discretion, to waive the Owner Occupancy requirement and allow a vacation/second home or investment/rental property to be underwritten against the issuance of the HEFI. Should the property in question currently be or become an investment/rental property, the HEFI Owner would not have any claim on rental income received by the borrower.
