The Department of Veterans Affairs (VA) established occupancy requirements to ensure that VA loan benefits are used primarily to help eligible veterans and service members purchase homes for personal residence rather than investment purposes. Under typical circumstances, you must occupy the home you’re financing with a VA loan as your primary residence within a reasonable time, usually 60 days of closing.
Intent to Occupy and VA Form 26-1820
At loan application, you’ll declare your intent to occupy the property by signing VA Form 26-1820, certifying you plan to make the home your primary residence. This declaration is a legal commitment, reinforcing the VA loan’s purpose.
Exceptions to the Occupancy Rule
The VA recognizes the unique challenges military life and other situations present, allowing for certain exceptions:
- Active-Duty Service Members: If deployment or Permanent Change of Station (PCS) orders prevent you from moving in promptly, your spouse can comply with occupancy requirements. Lenders may grant extensions if you demonstrate intent to occupy post-deployment.
- Retirement Plans: Veterans retiring within 12 months of purchase can obtain a VA loan by providing retirement documentation and proof of income post-retirement.
- Home Repairs: For homes needing significant repairs before move-in, lenders can allow extended occupancy timelines if you provide a repair plan.
- Intermittent Occupancy: Jobs requiring frequent travel (pilots, truck drivers) are accommodated as long as the home serves as your primary residence.
VA Loan Types and Occupancy
Occupancy obligations differ based on loan types:
| Loan Type | Occupancy Requirement |
|---|---|
| VA Purchase Loan | Must intend to occupy as primary residence within 60 days |
| VA Cash-Out Refinance | Must currently occupy the home being refinanced |
| VA IRRRL (Streamline) | Must certify previous occupancy; living in the home is not required |
For details on refinancing, see our VA IRRRL (Interest Rate Reduction Refinance Loan).
Multi-Unit Properties with VA Loans
You can purchase duplexes, triplexes, or four-plexes with VA loans, provided you occupy one unit as your primary residence. Rental income from other units may help qualify for the loan, making this a viable option for veterans interested in real estate investment. Learn more about Multi-Family Bridge Loans as a related concept.
Common Questions
How long must I live in the home?
The VA focuses on your intent at closing rather than a fixed occupancy period. Life changes like job relocations or military orders can justify moving later.
Can I rent out my VA home?
Not initially. You must occupy the home first, but after that, renting is generally allowed.
What if I misrepresent my occupancy?
Falsifying your occupancy intent is mortgage fraud and can result in loan calls, foreclosure, fines, or legal action.
For official guidance, refer to the VA Lender’s Handbook Chapter 3 and the Consumer Financial Protection Bureau’s VA loan occupancy requirements.
For further details, you may explore our linked articles on Occupancy Certification and Principal Residence Loan.
