Exceptions To VA Loan Occupancy Requirements
You may find that you need more than 60 days to begin occupying your new home after you’ve closed on the loan. If your circumstances qualify, the VA may allow for an exception to its occupancy requirements.
However, the VA generally doesn’t allow a specific date of occupancy beyond 12 months. So if you, a spouse or a dependent can’t move into your home within 1 year, you’ll probably need to wait to apply for a VA loan or use another type of mortgage.
Spouse Occupancy
If you’re actively deployed – or temporarily assigned to a military post or non-military job far away from your permanent location – you can still meet the VA loan occupancy requirements if your spouse is able to occupy the home within 60 days.
Dependent Child Occupancy
You can also have your child or other dependent live in your VA loan–backed primary residence if you’re unable to occupy the home within 60 days.
However, to satisfy the occupancy requirement, the dependent’s legal guardian – or your attorney – will need to certify in writing that the dependent will be residing in your home.
Intermittent Occupancy
As a military service member, your home occupancy will likely be interrupted by active-duty deployment or temporary assignments. While you may not be able to reside in your home on a daily basis, intermittent occupancy is allowed so long as you:
- Can show you use the property as your primary address
- Have lived there continuously in the past
- Aren’t using the property as a second home or seasonal vacation property
- Haven’t moved – nor intend to move – to another primary residence elsewhere
Delayed Occupancy
Some qualifying circumstances and living situations may make it difficult – if not impossible – for you to occupy your home before the 60-day mark.
If you can let your lender know the event that’s preventing you from moving into your home during the reasonable time frame and provide a specific date for when you can assume occupancy, you may qualify for one of the following exceptions:
- Active duty: If you’re on temporary duty, you can purchase a home in your permanent location so long as you intend to occupy the home as your primary residence at the completion of your deployment or assignment.
- Home improvements or property repairs: If extensive repairs will prevent you from moving in earlier, you may be able to occupy the home – or reoccupy the home if you’re refinancing – after the 60-day requirement.
Once repairs and improvements are completed, you’ll be required to use the home as your primary residence – you can’t sell, rent or use the property as a second home or vacation home. If you’re taking out a VA cash-out refinance, you’ll need to continue using the home as your primary residence.
Retirement Occupancy
You can qualify for an occupancy delay on a home you plan to move into after you retire so long as you:
- Are retiring in the next 12 months
- Give your lender a copy of your application for retirement
- Provide proof to your lender that your retirement income can cover your monthly mortgage payments, living expenses and other debts you may have
Rental Occupancy
You can rent out your VA loan–financed property if you’ve resided in the home for 12 months or received a new assignment before the year mark in a location that’s too far from your primary residence to commute.
The tenant doesn’t have to be a service member nor do they need to be employed by the military.
Read More: A Guide To VA Loan Occupancy Requirements