Do You Know The VA’s Stance On Occupancy Law

Posted on June 28, 2009
Filed Under Loans |

There are a number of very specific requirements that the borrower must meet in order to get the benefits of VA loan financing. Among those requirements, there are those that have to do with occupancy, meaning the borrower’s living arrangements.

In fact, the law states that those veterans who have gotten a VA-guaranteed home loan must verify that they have every intention of personally dwelling on the premises, and maintain the property as their primary residence. Once this has been certified in writing, the veteran is obligated to move in and take up residence immediately or must intend to do so within sixty days after the closing.

These general requirements are applicable and enforceable for most types of loans that have been guaranteed by the Veterans Administration. The only exception is in the case of IRRLs or Interest Rate Reduction Refinancing Loans. With IRRRLs, the veteran is only required to certify that he or she previously occupied the property as a normal residence.