At Mortgage Solutions Financial, we’re committed to helping veterans navigate the complexities of VA loans. One aspect of VA loan requirements that often raises questions is the occupancy requirement. Let’s break down what this means and how you can stay compliant.
Staying Compliant with VA Loan Occupancy Requirements
VA requirements stipulate that borrowers must intend to occupy the property as their primary residence. This rule exists to ensure that the VA loan program is helping to carry out its primary purpose of helping military members achieve homeownership status. But what exactly counts as compliance with this requirement?
The 60-Day Rule
Typically, in order to meet VA loan requirements, borrowers must move into the property within 60 days of closing. This timeframe is designed to accommodate the practicalities of moving, especially for active-duty service members who might be in the process of relocating.
Exceptions to the 60-Day Rule
The VA knows that military life can be unpredictable. That’s why, in special cases, exceptions can be made regarding the occupancy requirement. For instance, if you’re on active duty or have an upcoming deployment, you may be granted additional time to satisfy the occupancy requirement.
Spouse Occupancy
Additionally, in some cases, it may be possible for a spouse to satisfy the occupancy rule if the service member is unable to do so due to deployment or other service obligations. This flexibility can be a game-changer for many military families.
Intermittent Occupancy
What if your job requires frequent travel or causes you to temporarily relocate? The good news is that the VA takes matters like this into consideration. As long as you maintain the property as your primary residence and return to it between assignments, you’re generally considered to be in compliance.
Future Occupancy
In some cases, VA loans may also allow for future occupancy. For example, if you’re buying a home you plan to retire in or if you’re purchasing a property that’s under construction, you may be able to move in and occupy the property at a later date. However, you’ll need to clearly communicate your intent to do this and provide specifics about your timeline for moving in.
What Doesn’t Count as Occupancy?
It’s also important to understand what doesn’t meet VA loan requirements for occupancy. Renting out the entire property immediately after purchase, buying a home for a child to live in during college, or purchasing a vacation home all fail to meet the occupancy requirement.
Consequences of Non-Compliance
Failing to comply with VA requirements for occupancy can have serious consequences. It could be considered fraud, potentially resulting in the loan being called due in full or even legal action.
Reach Out for More Information
We’re committed to helping you make the most of your VA loan benefits while staying within the guidelines. If you have questions about VA loan requirements or any aspect of the VA loan process, don’t hesitate to reach out. At Mortgage Solutions Financial, we’re here to serve those who’ve served our country.
