For Owner Occupied purchases, within how many days after closing must the borrower occupy the property per FNMA/FHLMC guidelines?

For Owner Occupied purchases, within how many days after closing must the borrower occupy the property per FNMA/FHLMC guidelines?

• A. 60 Days
• B. 30 Days
• C. 90 Days
• D. 120 Days

Answer: (A)

Owner-occupied purchases must have the borrower establish residence within 60 days after closing. This timeframe from Fannie Mae and Freddie Mac ensures the loan is used for a primary residence and not for investment or rental purposes. If occupancy isn’t established within 60 days, the loan could be reclassified as non-owner-occupied, which can affect pricing, underwriting, and eligibility. The other intervals (30 days, 90 days, 120 days) do not align with these standard guidelines, making 60 days the correct timeframe.

Owner-occupied purchases must have the borrower establish residence within 60 days after closing. This timeframe from Fannie Mae and Freddie Mac ensures the loan is used for a primary residence and not for investment or rental purposes. If occupancy isn’t established within 60 days, the loan could be reclassified as non-owner-occupied, which can affect pricing, underwriting, and eligibility. The other intervals (30 days, 90 days, 120 days) do not align with these standard guidelines, making 60 days the correct timeframe.