Once a loan is closed, the borrower must occupy within:

The requirement for a borrower to occupy a property within a specified time frame after closing on a loan is often determined by the type of loan and the lender's policies. In many cases, especially for government-backed loans like FHA and VA loans, the regulation states that the borrower must occupy the property within 60 days of closing. This requirement helps ensure that the borrower is using the property as a primary residence, which is a condition for these types of financing options.

Occupying the property within this timeframe is crucial for the lender as it mitigates risk; if a borrower were to invest in a property but not occupy it, it could indicate they intend to use it as a rental or investment property, potentially violating the terms of the loan.

Understanding this requirement is important for mortgage loan officers, as it impacts how they guide borrowers through the closing process and what expectations they should manage regarding occupancy.