There are many factors at work to make a VA home loan successful. One issue that currently serving military members can face with a VA home loan is how their current duty status affect the borrower’s ability to move into the new home within the required time frame established by VA loan rules. Do you know how long you have from the time you close the deal until you are required to live in the home? Believe it or not, there is a VA regulation that governs this very topic.
Some borrowers have no trouble at all at closing time--they are ready to move into the home right away. But not all house hunters have that luxury. Military members stationed at overseas bases who are about to transition back to civilian life, or accept a new military assignment back in the USA are often allowed to use leave or go on temporary duty known as “permissive TDY” in order to find a new home.
When this permissive TDY is over (it can last up to two weeks in some cases) the military member would return to his or her duty station. Some can and do find homes to buy while on leave or permissive TDY, but what does the VA say about their ability to come back to sign papers and move into the home?
In general, the VA official site states, “The law requires a veteran obtaining a VA-guaranteed loan to certify that he or she intends to personally occupy the property as his or her home. As of the date of certification, the veteran must either
· personally live in the property as his or her home,
· intend, upon completion of the loan and acquisition of the dwelling, to personally move into the property and use it as his or her home within a reasonable time.”
“Reasonable” is defined as 60 days or less. The VA does allow a borrower more time, if the following conditions apply:
“·The veteran certifies that he or she will personally occupy the property as his or her home at a specific date after loan closing,
· there is a particular future event that will make it possible for the veteran to personally occupy the property as his or her home on a specific future date.”
VA loan rules also include the following warning; “Occupancy at a date beyond 12 months after loan closing generally cannot be considered reasonable by VA.”
If you need assistance with an extended move-in date based on the information above, contact your lender and the Department of Veterans Affairs for assistance.