For the select few who are entitled to use a VA home loan, it is a great opportunity. Veterans Affairs allows veterans of the armed forces to obtain a home loan at 100% financing, meaning no downpayment is needed. For military families, this is very important because many families accross the country don’t have the funds for a downpayment to purchase a new home. For those families, it is more practical to take time to save up the downpayment money before they move. However, with a military family, many times notice of a relocation can be as little at 3 weeks.
Occupany Requirements For VA Loans
As with many loan programs, the VA home loan package has requirements. The main difference for this type of loan, is that the home owner will need to occupy the home. “Veterans and active duty personnel who secure a VA loan have to certify that they intend to personally occupy the property as a primary residence.” says Veterans United. Very common in military families, I will see the home buyer is not able to move in right away, this is normal and the VA understands that. The rule is the family typically has 60 days to move in after closing on the home. I have seen this waived if PCS orders are provided to support special circumstances. Typically, occupancy one year after closing is deemed unreasonable.
This loan is not allowed to be used to purchase investment properties, vacation homes, etc…
Sometimes, if one spouse is deployed while the other spouse is trying to get the home situated before deployment is over, the VA does allow for the spouse to occupy the home and fulfill this occupancy requirement.
Renting Out Your VA Home
You are allowed to rent out your home if you have a VA loan. You are also allowed to refinance your home if you have a renter living in the home because you can claim prior occupancy. If you choose to rent out your home, your VA entitlement will be tied up with the home until you sell it. Your current home may not take up your entire entitlement, and you may be able to purchase another home that you intend to occupy using up the remaining balance on your VA entitlement. You would need to see what your max entitlement is.
If you have more questions on this topic, I have a wonderful mortgage lender that can help you out with ANY home loan. Many times having the home buyer bring little to nothing to the closing table. Call me today for his info and to get started on home ownership today! Crystal at 910-545-2689 or email to CampLejeuneRealtor@gmail.com
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