d. Occupancy

Any person who uses entitlement on a joint loan must certify intent to personally occupy the property as his or her home. 

Any borrower on a joint loan who does not use entitlement for the loan (such as a nonveteran), does not have to intend to occupy the property.

e. How Many Units Can the Property Have?

If a property is to be owned by two or more eligible veterans, it may consist of four family units and one business unit, plus one additional unit for each veteran participating in the ownership.

Thus, two veterans may purchase or construct residential property consisting of up to six family units (the basic four units plus one unit for each of the two veterans), and one business unit. 

If the property contains more units than four family units plus one family unit for each veteran participating in the ownership and/or more than one business unit, the loan is not eligible for guaranty.

f. Which Joint Loans Require Prior Approval?

Any joint loan for which the veteran will hold title to the property and any person other than the veteran’s spouse must be submitted for prior approval.

Any loan for which the veteran and the veteran’s spouse will hold title to the property, whether or not the spouse also uses entitlement, may be closed automatically by a lender with automatic authority.