c. When Can a Spouse Satisfy the Occupancy Requirement?

Occupancy (or intention to occupy) by the spouse satisfies the occupancy requirement for a veteran who is on active duty and cannot personally occupy the dwelling within a reasonable time. [ ]

Occupancy by the spouse may satisfy the requirement if the veteran cannot personally occupy the dwelling within a reasonable time due to distant employment other than military service. In these specific cases, consult your RLC to determine if this type of occupancy meets VA requirements.

Note:  The cost of maintaining separate living arrangements should be considered in underwriting the loan.

For an IRRRL, a certification that the spouse previously occupied the dwelling as a home will satisfy the requirement.

No family member or person other than the veteran’s spouse can satisfy the occupancy requirement for the veteran.

d. Occupancy Requirements for Deployed Active Duty Service Members

Single or married servicemembers, while deployed from their permanent duty station, are considered to be in a temporary duty status and able to provide a valid intent to occupy certification.  This is true without regard to whether or not a spouse will be available to occupy the property prior to the veteran’s return from deployment.

e. Occupancy After Retirement

If the veteran states that he or she will retire within 12 months and wants a loan to purchase a home in the retirement location

·   verify the veteran’s eligibility for retirement on the specified date, and

- Include a copy of the veteran’s application for retirement submitted to his or her employer.

·   carefully consider the applicant’s income after retirement.

- If retirement income alone is insufficient, obtain firm commitments from an employer that meet the usual stability of income requirements.

Note:  Only retirement on a specific date within 12 months qualifies.  Retirement “within the next few years” or “in the near future” is not sufficient.