VA Loan Occupancy Requirements
VA loan occupancy requirements set clear guidelines about how and when borrowers must live in homes purchased with VA financing. Understanding these requirements is crucial for military members and veterans planning to use their VA loan benefits, as they differ from conventional mortgage occupancy rules for primary homes.
Obtaining a VA loan is a way for active duty service members, veterans, and their spouses to take advantage of numerous benefits unavailable through any other loan program. A VA loan provides the borrower with a loan without requiring a traditional down payment or private mortgage insurance. Additionally, there are few closing costs that come with a VA loan.
At the same time, the VA loan program has very specific requirements for borrowers when it comes to qualifications and occupancy. For those who are interested in getting a VA loan, learning about the VA loan occupancy requirements is essential to ensure that a VA home loan is the right fit for your needs.
So, what are the occupancy requirements for a VA loan? Keep reading to learn more.
KEY TAKEAWAYS
- Service members and veterans must meet VA loan occupancy requirements in order to remain eligible for their VA loan.
- VA loan borrowers must use their VA-backed home as their primary residence and occupy the property within a reasonable time after finalizing their loan.
- VA loans are not intended to be used to purchase vacation homes or investment properties.
- Several exceptions to VA occupancy requirements exist to accommodate spouses, dependents, active duty service members, impending retirees, and more.
VA Loan Residency Requirements
Before applying for a VA loan, it’s a good idea to familiarize yourself with VA home loan occupancy requirements. Currently, the VA requires that any qualifying veteran who applies for a VA loan must intend to occupy the property they are purchasing themselves. This means veterans who intend to purchase a property that is not their primary residence cannot do so with a VA loan.
VA loan occupancy requirements include:
- Property must be the borrower’s primary residence: The home purchased with a VA loan must be where you primarily live, not a vacation home or investment property. This means you’ll receive mail at this address, have your driver’s license registered here, and spend the majority of your time at this location.
- Borrower must occupy the home: The person who takes out the VA loan must be the one living on the property. You cannot use a VA loan to purchase a home for someone else to live in, even if they are a family member. The occupancy requirement is tied directly to the veteran or service member who earned the benefit.
- Occupancy must occur within 60 days of loan closing: While immediate occupancy is preferred, lenders and the VA understand that it’s not always possible and allow borrowers a “reasonable time” to occupy the property, which is typically up to 60 days after closing. This timeline should give you reasonable flexibility to handle moving logistics, especially if you’re relocating from another area.
- Intent to occupy must be genuine and documented: You must sign an occupancy certification as part of your VA loan paperwork confirming your plans to live in the home. This is a legally binding document, and providing false information about your occupancy intentions could constitute fraud. The VA and lenders may verify your occupancy through various means, including address verification and periodic checks.
Keep in mind that there are also other VA loan requirements you must meet in order to qualify; occupancy is just one of many requirements. If you have any questions, you can contact us to walk you through the process.
What is the minimum VA loan occupancy time?
When applying for VA loans, it is important to account for any VA loan occupancy time requirements. In some respects, getting a VA loan is a major commitment, as the borrower is expected to occupy the residence for a certain amount of time after closing. This is one of the notable differences between VA loans and other more conventional loan types.
Although there is no legally required time for occupancy under the law, borrowers typically must intend to reside at the residence for at least 12 months after the closing date. Since this is a somewhat flexible requirement, you can speak with your lender to work out a different arrangement if you’d like.
At Griffin Funding, we have plenty of experience in dealing with VA loans, and we can help customize your loan terms to arrange financing that works for you. Wondering how much a VA loan will cost you? Use our VA loan calculator to estimate your payments and compare your options.
Can I buy a second home with a VA loan?
While a VA loan can be used as an investment property loan in some cases, it’s intended for primary residences. They are not intended to be used for investment properties or vacation homes. However, it is possible to use a VA loan for a second home provided you meet certain requirements.
If you have already paid off your first VA loan and you want to keep your home with its secured backing, you may be eligible for a one-time restoration of your individual VA entitlement. This may allow you to move forward with applying for a second VA loan without jeopardizing the security of your first VA loan and home.
If you choose to sell your first VA-backed property, keep in mind that the VA loan you acquired is assumable. This means that a borrower can potentially take on the same loan terms as the seller when they purchase the home, even if the borrower doesn’t qualify for a VA loan themselves.
Can I rent out a home I bought with a VA loan?
It is possible to get an investment property with a VA loan while still following the occupancy requirements. You can rent out a home purchased with a VA loan, but the VA loan occupancy requirements still apply. Using a VA loan, you can purchase a home with up to four units, so you could stay in compliance with occupancy requirements by living in one unit and renting out the others. Note, however, that you can’t use a residence purchased with a VA loan as a short-term or vacation rental property.
Additionally, in many cases, if you have occupied the home you obtained with an existing VA loan for at least 12 months and are in need of a transfer where you are stationed, you can rent your home out as you seek a new residence. This is possible even if the renter is not an active military member or a veteran.
Exceptions to VA Occupancy Requirements
When researching VA occupancy requirements, it’s important to keep in mind that there are exceptions to some requirements in place. Below are some of the main exceptions to the VA occupancy requirements.
Spouse occupancy
When it comes to spouses and VA loans, it is essential to remember that spouses typically satisfy the occupancy requirements for a VA loan. This is true if the active military member is currently stationed away on duty, is unable to occupy the residence themselves due to employment requirements, or is otherwise unable to occupy the home for a valid reason. In cases like these, a service member’s spouse is allowed to essentially stand in place of the service member and fulfill the VA’s occupancy requirements.
Dependent child occupancy
If you are an active military member or a veteran and you have a dependent child, that child can occupy the home if you’re unable to move in within a reasonable timeframe following the closing of the VA loan. In order for this exception to apply, the dependent’s legal guardian or your attorney must provide written verification to the VA that the dependent will be occupying the property.
Intermittent occupancy
Intermittent occupancy is permitted for veterans and/or active military members who need to leave the home for employment or due to service-related activities. It is not required that those who qualify for a VA loan live on their property 24/7. However, it is assumed that those who receive a VA-backed loan for a home residence have the following qualities:
- Is a member of the local community and has ties to those in the area from being a full-time resident.
- Has the intention of living on their property full-time
- When leaving their main place of residence, they return within a reasonable time, even when tending to their employment
It is important to note that using a VA-backed property as a seasonal residence is not permitted under the current occupancy guidelines and requirements in place.
Retirement occupancy
Active military members and/or veterans who intend to retire can do so while attempting to apply for a VA loan. However, there are a few qualifications to keep in mind, such as:
- Those who intend to retire while applying for a VA loan for a primary residence must be retiring within 12 months of obtaining a VA loan.
- Borrowers must provide their lender with a copy of their application for retirement.
- Borrowers must prove to lenders that they will generate sufficient income in retirement to keep up with mortgage payments as needed.
Delayed occupancy
In some cases, a home may be able to pass a VA home inspection but, at the same time, you may want to undertake significant repairs before moving in. The process of making renovations or repairs can prevent borrowers from moving into the home within a reasonable timeframe.
So, if you purchase a home with a VA loan but you intend to make significant changes and/or updates to the property, you may qualify for a delayed occupancy exception. This means that you can coordinate with the VA to move into the home at some point beyond the typical 60 day move-in requirement.
Apply for a VA Loan Today
Meeting the VA loan residency requirements is key in maintaining your eligibility for a VA home loan. While VA loans do have more requirements that the borrower must meet when compared to other types of loans, this is balanced out by all of the benefits provided by the VA home loan program. The prospect of no down payment, low interest rates, no PMI requirements, and beneficial loan terms make VA loans an attractive option for qualifying borrowers.
If you are thinking of investing in a primary residence or if you are interested in a potential second VA loan, contact Griffing Funding to see if you qualify for a VA loan. At Griffin Funding, we’re happy to help assist you through the process of applying for and obtaining a VA loan. Check out current VA loan rates, download the Griffin Gold app, and apply for a VA loan that is right for you at Griffin Funding today.
Find the best loan for you. Reach out today!
Get StartedFrequently Asked Questions
How does the VA verify occupancy? 
Do VA loan occupancy requirements apply when refinancing? 
What happens if you don’t meet VA loan occupancy requirements? 
If you’ve already been approved for the loan and don’t follow occupancy requirements, the VA may demand immediate repayment of the loan, and you could face fraud charges if you intentionally misrepresented your intentions. Make sure to continue communicating with your lender if circumstances change that may affect your ability to occupy the property.
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