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When getting ready to buy or refinance a home, you’ll often deal with a number of moving pieces. There are many situations in which ownership status for homes or businesses may come up as part of your mortgage transaction. Some of them are in ways you might expect, and others might be just a little more obscure. But it helps to understand the concepts, so you can prepare for any questions that might get thrown your way during the application process.

The remainder of this post will go over the ways in which owning property or a business can impact your mortgage transaction.

Being on the Title to a Home

When it comes to mortgage programs for first-time homebuyers, it does actually matter whether you’ve had ownership in a home before.

As many mortgage investors and grant providers define it, being a first-time homebuyer means not having owned any residential property in the last 3 years prior to the closing date on your new home. You also must be purchasing a primary residence. There are very limited exceptions to this rule.

Whether you own 1% or 100% of a property, if you’ve owned it in the last 3 years, you’re not eligible for first-time home buyer programs through the major mortgage investors. You have an interest if you own 1% or 100% of the property.

One thing to note is that if others are on the title, they may have to sign mortgage documentation regardless of whether they’re on the loan itself.

Owning Your Own Business

Another aspect where ownership interest might come into play is if you own your own business. In fact, if you own more than 25% interest in any business,…