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60 Day Leaseback Workaround?

We are under contract to purchase a home. The offer was accepted 4 weeks ago, with terms including finalizing sale on May 5 and taking occupancy August 7.

Our lender is now telling us that they cannot issue the loan with those terms since the leaseback is more than 60 days, and since the rate lock expires in 2 weeks, any change of terms our closing date would mean an extra 0.5% extra in interest rates.

We are a bit upset that both our realtor and mortgage lender were aware of the terms of this contract, and no one mentioned any issue with the leaseback period. Is this a common issue, and is there any workaround that would prevent us from having to move closing?

submitted by /u/Actuarial
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source https://www.reddit.com/r/RealEstate/comments/12xkzqp/60_day_leaseback_workaround/
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