VA Mortgage Occupancy Presentation

1. Occupancy
It’s the law

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. Requirement
• Live in the property or
• Intend to occupy within
a reasonable time

4. What is a “reasonable time”?
• Occupancy within 60 days is
considered reasonable.*
*Of course, there are exceptions….

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. 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. 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. Occupancy projected more than 12
months after loan closing generally
cannot be considered acceptable.
REMEMBER:

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. Occupancy by Spouse
• Spouse may satisfy occupancy if
– Veteran is on active duty and cannot
occupy
– Veteran cannot occupy due to
distant employment

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. 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. 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!

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. Reference
• VA Lenders Handbook
VA Pamphlet 26-7
– Chapter 3, section 5

16. Thank you for choosing to work with
the VA Home Loan Program.
We appreciate your support!