Short answer
For a loan on a home you'll live in, the standard Fannie Mae and Freddie Mac mortgage says you'll move in within 60 days of signing and live there for at least one year, unless the lender agrees otherwise in writing or circumstances beyond your control come up. After that year, you can generally rent it out.
Where does the one-year rule come from?
It's in the occupancy section of the mortgage (the security instrument) you sign at closing. The uniform version used for Fannie Mae and Freddie Mac loans asks you to move in within 60 days and keep the home as your principal residence for at least a year. Your own documents have the exact wording, so read that section before you sign.
What if my plans change?
The covenant allows for the lender agreeing otherwise in writing and for circumstances beyond your control. A sudden job transfer, for example, is a different situation from planning to rent the home from the start. If something changes, talk with your loan servicer.
Do FHA and VA loans have the same rule?
FHA and VA loans have their own occupancy rules. Ask Tom how they apply to the loan you're considering.
Why does occupancy matter so much?
Loans on homes you live in are priced and approved differently from loans on rentals. Saying you'll live in a home when you plan to rent it out is mortgage fraud. If you want a rental, there are loans built for that.
How can I plan for a future rental?
- Buy a 2 to 4 unit building, live in one unit and rent the others (multi-family guide)
- Keep your current home as a rental when you move (buying before you sell)
- Buy the rental with an investment property loan (conventional vs DSCR)
Sources
Checked October 27, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.