For how long does a conventional loan owner typically agree to occupy the property?

In the context of conventional loans, borrowers typically agree to occupy the property as their primary residence for a minimum of one year. This requirement helps lenders ensure that the loan is used for its intended purpose, which usually involves providing financing for a home that the borrower will live in rather than using it as an investment or rental property.

After this initial one-year period, homeowners may decide to use the property differently, but the one-year occupancy rule is a standard practice in many mortgage agreements. This requirement also serves to protect the lender's investment, as primary residences often present lower risks in terms of default compared to properties that are not owner-occupied.

The misconception might arise from other loan types or specific lender policies that may require different occupancy timelines, but for conventional loans, the one-year occupancy agreement stands as a crucial term in the borrowing process.