A letter of explanation of occupancy is required in the following situations ¹:

• If you plan to relocate to another owner-occupied residence without selling your initial home.
• If you intend to retain the property as an investment rental.

An Occupancy Affidavit may also be referred to as a “Statement of Occupancy,” “Occupancy Statement,” “Occupancy Certification,” “Owner Occupancy Letter,” “Residency Affidavit,” or by other names as well ².

The servicer may also send a letter to the borrower’s home, which the homeowner must sign and return to confirm they’re living at the property ³.