First Time Buyer Loan Question

[Brian Jasinski]

My 22 year old relative is putting in an offer on a condo.  Asking is $200K, my relative (buyer) looking to put 20% down.

He is pre-approved for the amount, lender has prepared both a conventional loan and a mass housing loan option for first time buyers.

Would be purchasing as an owner occupied "primary residence", rates are decent under both options.

Condo is currently rented, tenant lease expires the end of August - roughly 4 months.

Lender says both loan programs require buyer to occupy the unit within 60 days, to qualify for first time buyer deals.

Is there a way to get them to extend this to 120 days (4 months) until the tenant lease is up?

The only other option is to buy it as an investment property, but the rates are 1.5% more with 20% down, or 1% more with 25% down and 1 point.

Was wondering if maybe anyone had any experience with this?  Are local credit unions more flexible on these criteria?

Any suggestions here would be appreciated,  Thank you