Primary Home - How soon does buyer have to move in after closing

[Weng L.]

Lease is expiring and I plan to sell the property, but tenant wants to renew the lease for another 7 months till 6/30/2022. If I put the property for sale now and if a buyer is willing to buy and take over remaining of the lease, will lender issue primary-home mortgage if the buyer will not move in until 7/1/2022?

The sale price will be $620-650k. The mortgage will most likely be either conventional or jumbo (depending on down payment amount). I found a place online mention about the rule of primary home loan - Buyer has to move in within 60 days after closing. However I can't find any official (Fannie/Freddie) document that mention about this. If it is a jumbo loan, each lender has their own guideline or flexibility on this and is not subject to Fannie/Freddie guideline, correct?

[Zack Karp]

@Weng L. it is a Fannie/Freddie/Jumbo/FHA/VA guideline for ANY primary residence mortgage, that the buyer must occupy the property within 60 days of closing. This does not vary from lender to lender. So if you want to be able to sell the property to a buyer using a primary residence mortgage, then you should not have a lease ending that far out. Obviously this wouldn't matter with a cash buyer.

Hope that helps and best of luck!