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If you will be retiring within 12 months from the date of your loan application, you must include a copy of your application for retirement and proof of requirement stability. Although the VA requires moving in to the home within a “reasonable time,” retiring veterans may be able to negotiate a later move-in date. You have the option to apply for a delay in the occupancy requirements. Like the other government-backed loans, VA home loans have occupancy requirements that help keep the program’s focus on primary residences.
The VA requires that the borrower move into the home within 60 days after the VA loan closes. A VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Customers with questions regarding our loan officers and their licensing may visit the Nationwide Mortgage Licensing System & Directoryfor more information. Remember, the VA doesn’t expect borrowers to know the VA’s lender handbook inside and out.
You may also be determined eligible if:
The VA does not have a rule specifing how long you must occupy a rental before you can refinance — and potentially rent the property. For IRRRLs, the VA says that a homeowner must only prove that they have been living in the home. This makes occupancy for a VA refinance much less of an issue than for VA home loans. What is the VA lender instructed to do if there IS a reasonable doubt?
In many cases, assuming the existing VA loan is beneficial because VA loans often come with lower interest rates and lower fees than other loan types. After one year of occupying the home you can plan to rent your property and hold it now as an investment property. You cannot use VA financing for investment properties or second homes. However, after living in the property for the required amount of time, you can use the home as you see fit and rent it out or sell.
Eligibility Requirements
How to secure a VA loan and all of the benefits that go along with it in an easy, step by step guide for active duty... If you are deployed after purchasing your home, your occupancy status is not affected by the deployment. You are considered to be in a “temporary duty status” and are able to provide a valid intent to occupy certification.
There are no VA police going door to door verifying the occupancy rule was met, although rare a lender can order an occupancy check if they want to. We've created these handy tools to help guide you through the VA loan process. Get the best deal on a VA home loan comparing the Nation's most trusted lenders side-by-side.
Spouses and Occupancy
However, there are certain eligibility requirements to get either VA product. In these cases, veterans only have to certify that they previously occupied the home. While the VA offers these exceptions, lenders also have their own standards that might affect occupancy requirements. VA borrowers must either personally live in the property as their home or intend to move into the property and use it as their home within 60 days of the loan closing.
By using, you will be matched with participating members of the ICB Solutions network who may contact you with information related to home buying and financing. These members typically have paid to be included but are not endorsed by ICB Solutions, LLC or this site. Find out if you can get a VA-backed IRRRL to help reduce your monthly payments or make them more stable. If you’ve received an other than honorable, bad conduct, or dishonorable discharge, you may not be eligible for VA benefits. Rocket Mortgage® uses information about your income, assets and credit to show you which mortgage options make sense for you. Full Beaker, Inc. is not licensed to make residential mortgage loans in New York State.
Some websites and blogs about VA loans perpetuate myths about VA home loans whether by accident or ignorance of the rules. There must be “no indication that the veteran has established, intends to establish, or may be required to establish, a principal residence elsewhere”. We recommend speaking with your loan servicer before renting your VA loan home to someone else. But both single and married service members can provide what the VA considers “valid intent” to occupy when they’re deployed from their permanent duty station. This provides a degree of breathing room for homeowners who are still actively serving our nation both at home and abroad. Generally, the VA does not make exceptions if you want to set an occupancy date for more than 12 months after your loan closes.
Or you may be able to delay occupancy if you're purchasing a property that has renters finishing up an active lease. A VA Cash-Out refinance mortgage requires the borrower to certify occupancy on their new loan. VA occupancy rules apply for certain refinance loans but not for others. The veteran can not occupy the home until they retire from the military. Since we’ve had some questions related to VA home loan occupancy rules, it seemed like a good time to review the Department of Veterans Affairs requirements for primary occupancy.
Find out if you can get a VA-backed purchase loan and get better terms than with a private lender loan. You may be able to get a COE if you meet at least one of these requirements. Turn your home equity into cash and reduce your mortgage rate at the same time.
According to the VA official site, the lender must decide if “a reasonable basis exists for concluding that the veteran can and will occupy the property as certified. There are other reasons why a borrower may not be able to move into a home purchased with a VA mortgage right away. If the home is being repaired, renovated, or remodeled in conjunction with a VA mortgage loan, the home may not be habitable at closing time. If you plan on retiring within 12 months after applying for your VA loan, you might be able to negotiate for a later move-in date. A retiring veteran must include a copy of their application for retirement, and VA lenders will carefully consider if the retiree’s income is sufficient to maintain a home loan. For married active-duty service members, a spouse can fill the occupancy requirement.
The VA occupancy rules do apply for certain refinance loans, but not all. A VA cash-out refinance mortgage does require a new appraisal and a credit check. Also, it requires the borrower to certify occupancy for the new loan. VA loan rules also permit non-VA borrowers to apply with the veteran for a “joint loan”. The military member’s VA loan entitlement is charged for the veteran’s share of the mortgage only. Any non-VA borrower on such a joint loan is not required to meet the occupancy requirements because the non-VA borrower isn’t using the VA loan benefit and is therefore not subject to the same rules.
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