Occupancy

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Occupancy
Its the law
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The Law
A veteran obtaining a VA-guaranteed loan must
certify that they intend to occupy the property
as their primary residence.
The occupancy law applies to all VA loan types
except for Interest Rate Reduction Refinancing
Loans (IRRRL)
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Requirement

• Live in the property or
• Intend to occupy within a reasonable time

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What is a reasonable time?

• Occupancy within 60 days is considered
  reasonable.

Of course, there are exceptions.
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Exceptions to 60-day guideline

• A particular future event (i.e. job transfer,
  military discharge, etc.) that will make it
  possible for the veteran to occupy the home on a
  specific date after loan closing.

Borrower must provide official documentation to
support claim of future event.
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Exception to 60-day guideline
Occupancy After Retirement
In the near future?
Sometime soon?
Only retirement on a specific date within 12
months qualifies!
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Exception to 60-day guideline
Extensive property repairs or improvements that
will prevent the veteran from occupying the
property while work is being completed.
The veteran must certify their intention to
occupy or reoccupy the property upon completion
of repairs/improvements.
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REMEMBER
Occupancy projected more than 12 months after
loan closing generally cannot be considered
acceptable.
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Who can satisfy occupancy requirements?

• Veteran
• Spouse of the veteran
• Adult child of the veteran
• Renter
• Both A and B
• A, B, and C
• All of the above

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Occupancy by Spouse

• Spouse may satisfy occupancy if
• Veteran is on active duty and cannot occupy
• Veteran cannot occupy due to distant employment

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What if the veteran doesnt have a spouse to
occupy?

• Only active duty service members deployed from
  their permanent duty station are considered to be
  in temporary duty status and able to provide a
  valid intent to occupy certification with or
  without a spouse.

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Intermittent OccupancyDue to Employment

• Acceptable if the following two conditions are
  met
• History of continuous residence in the community
  and
• There is no indication of a principal residence
  established elsewhere.

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Unusual Circumstances
These things happen
Call or e-mail your Regional Loan Center
regarding unusual occupancy issues. www.homeloans
.va.gov/contact.htm
HappY
Wed be
to discuss them with you!
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Occupancy Certification

• Uniform Residential Loan Application
• VA Form 26-1802a, Addendum to the Uniform
  Residential Loan Application (prior approval
  loans) and
• VA Form 26-1820, Report and Certification of Loan
  Disbursement (at the time of loan closing).

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Reference

• VA Lenders Handbook VA Pamphlet 26-7
• Chapter 3, section 5

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Thank you for choosing to work with the VA Home
Loan Program.
We appreciate your support!