VA Mortgage Occupancy Presentation


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VA Mortgage Occupancy Presentation

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VA Mortgage Occupancy Presentation

  1. 1. Occupancy It’s the law
  2. 2. The Law* *The occupancy law applies to all VA loan types except for Interest Rate Reduction Refinancing Loans (IRRRL) A veteran obtaining a VA-guaranteed loan must certify that they intend to occupy the property as their primary residence.
  3. 3. Requirement • Live in the property or • Intend to occupy within a reasonable time
  4. 4. What is a “reasonable time”? • Occupancy within 60 days is considered reasonable.* *Of course, there are exceptions….
  5. 5. Exceptions to 60-day guideline • A particular future event (i.e. job transfer, military discharge, etc.) that will make it possible for the veteran to occupy the home on a specific date after loan closing. Borrower must provide official documentation to support claim of future event.
  6. 6. Exception to 60-day guideline Occupancy After Retirement In the near future? Sometime soon? Only retirement on a specific date within 12 months qualifies!
  7. 7. Exception to 60-day guideline Extensive property repairs or improvements that will prevent the veteran from occupying the property while work is being completed. The veteran must certify their intention to occupy or reoccupy the property upon completion of repairs/improvements.
  8. 8. Occupancy projected more than 12 months after loan closing generally cannot be considered acceptable. REMEMBER:
  9. 9. a. Veteran b. Spouse of the veteran c. Adult child of the veteran d. Renter e. Both A and B f. A, B, and C g. All of the above Who can satisfy occupancy requirements?
  10. 10. Occupancy by Spouse • Spouse may satisfy occupancy if – Veteran is on active duty and cannot occupy – Veteran cannot occupy due to distant employment
  11. 11. What if the veteran doesn’t have a spouse to occupy? • Only active duty service members deployed from their permanent duty station are considered to be in temporary duty status and able to provide a valid intent to occupy certification with or without a spouse.
  12. 12. Intermittent Occupancy Due to Employment • Acceptable if the following two conditions are met: – History of continuous residence in the community and – There is no indication of a principal residence established elsewhere.
  13. 13. Unusual Circumstances Call or e-mail your Regional Loan Center regarding unusual occupancy issues. These things happen… We’d be to discuss them with you!
  14. 14. Occupancy Certification Uniform Residential Loan Application; VA Form 26-1802a, Addendum to the Uniform Residential Loan Application (prior approval loans); and VA Form 26-1820, Report and Certification of Loan Disbursement (at the time of loan closing).
  15. 15. Reference • VA Lenders Handbook VA Pamphlet 26-7 – Chapter 3, section 5
  16. 16. Thank you for choosing to work with the VA Home Loan Program. We appreciate your support!