What is a Primary Residence?

When buying a home one of the first questions a lender will ask you is the home you are purchasing or refinancing going to be your primary residence. A primary residence is the place you will be living in and occupying every day. The reason for the question is multi-fold. First, it will help determine what your interest rate and costs will be. It will also provide you with possible tax benefits for your tax returns in the form of a deduction.

The IRS does provide guidance on what constitutes a primary residence. It must be the place you spend the most time. It also will be your legal address for your tax returns along with your voter registration card.

Other types of uses or designations for a home are a second home or what is known as a vacation home or a home you plan to rent or what is known as an investment property. You can have only one primary residence, but you can have as many second homes or investment properties.

As always, consult with a trusted mortgage professional to learn more and be an educated and informed consumer.