How soon must a borrower occupy the home when obtaining a primary residence loan?

When a borrower obtains a primary residence loan, they are typically required to occupy the home within 60 days of the loan closing. This requirement is put in place to ensure that the borrower uses the property as their primary residence, which is a condition for securing certain mortgage benefits, such as lower interest rates and down payment options that are often available for owner-occupied properties.

Lenders establish this timeline to protect themselves against potential defaults and to ensure that the borrower is genuinely committed to making the property their primary residence. If the borrower fails to occupy the home within this specified period, it may lead to penalties or conditions that can affect the loan's terms or the borrower's eligibility for favorable financing.

Understanding these requirements is crucial for borrowers to align their plans with the occupancy expectations set by lenders.