How fast must I move into my new home per mortgage rules

Leasebacks and Buying New Home

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A leaseback (renting your home back right after selling) is a great way to make some real estate transactions work. Be careful though! The leaseback length may be subject to 2 quick flips of your wall calendar as your buyer (aka – new landlord) may be on a clock set by their lender.    

How Fast Must You Move Into a New Home

Often, buyers cannot move into their new primary residence right after buying it and/or seller’s cannot move right out after selling. In fact there are lots of valid reasons for this.  For example:

  • buyer is making across country move
  • seller or buyer are on a sunny vacation on the closing day
  • seller’s new home is still under construction

Regardless of reason, sellers staying and renting the home they just sold from the new buyer is called “leaseback“.  Typical leaseback timeframes are tidy and short. In fact, leasebacks cannot stretch on and on as primary residence buyers have 60 days to occupy the home (exceptions exist for VA loans).

60 Days To Move Into Your Primary Home

Loan products allow buyers 60 days to occupy a home purchased as a primary residence. In other words, buyers don’t need to occupy their new home day 1 after closing. However, within 60 days of closing, buyers must sleep in the new property.

Occupancy Move In – If Not Now Then When?

Requiring buyers to move in the day of closing is impractical.  However, lenders limit buyers to occupying a primary home 60 days after closing.  

While VA home loans offer exceptions, the 60 day occupancy rule is the norm for most home loans.

By Jeremy House


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