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A dependent child may occupy the home while their parent or parents are deployed or on active duty away from the home. It’s important to note that just by having the dependent in the home does not satisfy the requirement. You must take additional action by having your attorney or dependent’s legal guardian make the occupancy certification.
Usually, you can apply for an occupancy delay lasting up to 12 months. Additionally, you can have a child or other dependent living in the home while you’re on active duty or away. To satisfy the VA occupancy rule you must have your attorney or the dependent’s legal guardian certify the occupancy requirement is met. Therefore, you nor your family has to worry about a residency being an issue while you’re on duty. Every occupancy scenario is different, and requirements and policies can differ among lenders. For example, a military dependent could fulfill the occupancy requirement in some cases.
Can I Work With a 100% Military Disability Rating?
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.
Visitors with questions regarding our licensing may visit the Nationwide Mortgage Licensing System & Directory for more information. Actual payments will vary based on your individual situation and current rates. The VA requires the borrower to certify their intent to occupy on two documents. For example, a veteran who buys a home with a VA loan and then gets transferred overseas can rent out the home and still refinance that existing mortgage based on prior occupancy.
Delayed occupancy
But the issue of occupancy is important, not to mention often confusing, especially for first-time home buyers. There must be no indication that the Veteran has established, intends to establish, or may be required to establish, a principal residence elsewhere. This two-month moving window is "reasonable time," according to the VA.
For this to happen, a careful evaluation of the veterans’ income will be necessary, as will a specific date of retirement within the next 12 months. Without exception, servicemembers who are deployed from their duty station are allowed to purchase a property in their place of permanent residence. This is because they are considered to be in temporary duty, and their place of permanent residence remains constant during this. If you’ve made arrangements with your lender to fix or improve a home in order to meet MPRs, the VA allows you to occupy the home after the repairs have been made.
VA Home Loan
Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits. You will have to meet the financial requirements to ensure you can afford both homes, even if you are receiving rental income from your previous property. There is no set required time for occupancy, but the paperwork will state that the borrower must live in the residence for at least 12 months.
Your loan officer should be able to answer all your questions about VA loans and guide you through the process. When VA occupancy rules refer to “reasonable time,” they mean within 60 days. A veteran’s distant non-military government employment prevents them from personally occupying their dwelling within a reasonable time, so their spouse moves in. Active duty orders prevent a veteran from personally occupying their dwelling within a reasonable time, so the veteran’s spouse or qualifying dependent child moves in. Here’s what you should know about occupancy requirements before you apply for a VA home loan.
If the house is awarded to the civilian, allowing the civilian to assume the loan, the Veteran can have their VA loan entitlement restored through this personal liability release. If you have lived at your existing home for at least 12 months or moved to a new duty station, you may rent your property to a tenant. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. If you’re experiencing financial hardship due to the COVID-19 emergency, you can request a temporary delay in mortgage payments.
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.
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.
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.
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.
This requirement is met regardless of whether or not your spouse will be occupying the property while you’re deployed. The key when it comes to occupancy is clear communication with your lender and your loan specialist. The VA and lenders share the same goal — helping veterans become homeowners.
A significant benefit of military service is the VA home loan, allowing you to purchase a home with no down payment or refinance a home. Even though it seems as if there are a lot of “if, then” rules to define occupancy, it’s really not as complicated as it appears. The VA works hard to help borrowers understand how to fit their situation into these guidelines, and help set you up for success. Understanding your rights and benefits is something that a qualified Home Loan Expert is more than willing to help you with. Remember to always work with a lender who is skilled and specialized in the nuances of VA loans. VA loan occupancy requires that the veteran move into the home within a “reasonable time.” But what does that mean?
You could sell the home, refinance the civilian spouse off the loan, have the civilian spouse assume the loan, or seek a release of personal liability on the VA loan. This guide can help you under the homebuying process and how to make the most of your VA loan benefit.Download the Buyer's Guide here. VALoans.com is not affiliated with or endorsed by the Department of Veterans Affairs or any government agency.
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