The VA loan is restricted (in most cases) to active duty service members, veterans, national guardsmen and the surviving spouses of military personnel. An honorable discharge, as well as a service time of 90 continual wartime days or 181 days during peacetime, is required to take out a loan.
Beyond the aforementioned guidelines, the VA has in place specific occupancy requirements that must be maintained by the borrower. Veterans and active-duty military members are required to prove that they will occupy the home purchased and that it will be a primary residence. A service member or veteran has 60 days after closing to move into a home, however in certain circumstances the VA may allow for an extension of this time.
In the event that the borrower is active-duty, deployed, or works in another area (such as a contractor) the spouse can typically fulfill the occupancy requirements.
The occupancy requirements mean a borrower cannot use a VA loan to purchase a vacation home or second home, although a second VA loan can be used if the borrower is experiencing a drastic change in circumstances, such as a PCS or divorce.
If you’re unsure of whether or not the property meets the criteria for a VA loan, contact one of our Home Buyer Experts for immediate assistance at 888-259-2257 or start your secure online application now. Our Mortgage Experts can guide you through the process and help you determine which properties are eligible for purchase, helping you save time by expediting the process.