Change Date

September 15, 2004, Change 4

·   This section has been changed to create subsection lettering.

·   Subsection c has been changed to remove the reference to a remote duty station. 

a. The Law on Occupancy

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, or

·   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.

The above requirement applies to all types of VA guaranteed loans except Interest Rate Reduction Refinancing Loans (IRRRLs).  For IRRRLs, the veteran need only certify that he or she previously occupied the property as his or her home.

Example:  A veteran living in a home purchased with a VA loan is transferred to a duty station overseas.  The veteran rents out the home.  He/she may refinance the VA loan with an IRRRL based on previous occupancy of the home.

b. What is a “reasonable time”?

Occupancy within a “reasonable time" means within 60 days after the loan closing.  More than 60 days may be considered reasonable if both of the following conditions are met:

·   the veteran certifies that he or she will personally occupy the property as his or her home at a specific date after loan closing, and

·   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.

Occupancy at a date beyond 12 months after loan closing generally cannot be considered reasonable by VA.