va mortgage occupancy presentation
TRANSCRIPT
OccupancyIt’s the law
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.
Requirement
• Live in the property or• Intend to occupy within
a reasonable time
What is a “reasonable time”?
•Occupancy within 60 days is considered reasonable.*
*Of course, there are exceptions….
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.
Exception to 60-day guideline
Occupancy After Retirement
In the near future?
Sometime soon?
Only retirement on a specific date within 12 months qualifies!
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.
Occupancy projected more than 12 months after loan closing generally cannot be considered acceptable.
REMEMBER:
a. Veteranb. Spouse of the veteranc. Adult child of the
veterand. Rentere. Both A and Bf. A, B, and Cg. All of the above
Who can satisfy occupancy requirements?
Occupancy by Spouse• Spouse may satisfy occupancy if
– Veteran is on active duty and cannot occupy
– Veteran cannot occupy due to distant employment
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.
Intermittent OccupancyDue 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.
Unusual Circumstances
Call or e-mail your Regional Loan Center regarding unusual occupancy
issues.www.homeloans.va.gov/contact.htm
These things happen…
We’d be
to discuss them with you!
Occupancy Certification
Uniform Residential Loan Application; VA Form 26-1802a, Addendum to the Uniform Residential Loan Application (prior approval loans); andVA Form 26-1820, Report and Certification of Loan Disbursement (at the time of loan closing).
Reference• VA Lenders Handbook
VA Pamphlet 26-7– Chapter 3, section 5
Thank you for choosing to work with the VA Home Loan Program.
We appreciate your support!