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Mortgage Glossary

Occupancy Requirement

Mike Starr·Reviewed August 2026

An occupancy requirement is a lender condition that the borrower move into and live in a property as their primary residence within a specified period — typically 60 days of closing. It applies to owner-occupied loan programs (which offer better rates and lower down payments). Violating the occupancy requirement by renting out the property immediately constitutes mortgage fraud.