Yea, I'm in the same boat as you Jeremy. I've been looking in to this and I'd say "occupy" it. For example, if you bought a 3 bed SFR with the VA loan but had absolutely no intention of living there, place a bed and a small wardrobe in one room, shut the door and rent it out as a 2 bed SFR. I'd also ensure that your mail is sent to that address. With that said you can kill 2 birds by picking up your rent check from the tenant and your mortgage.
If you lived in the property for one good solid year, then you should be fine if you decide to move out and rent it out. At least that's what I've been told.
you don't want to go down that road, occupancy fraud. I just got a call the other day from a friend who called me in a panic seeing if I could help his in-law and that a mortgage investigator showed up at the door they did a loan as owner occupied when there was a tennant in the property.
If you are active military and you have official orders changing your permanent duty station more than 50 miles away, you can leave a VA financed owner occupied house before the first year is completed.
Otherwise VA mortgages are only for owner occupied residence, though you may but an apartment with up to 4 units, as long as you owner occupy one of the units.
Yea, I'm in the same boat as you Jeremy. I've been looking in to this and I'd say "occupy" it. For example, if you bought a 3 bed SFR with the VA loan but had absolutely no intention of living there, place a bed and a small wardrobe in one room, shut the door and rent it out as a 2 bed SFR. I'd also ensure that your mail is sent to that address. With that said you can kill 2 birds by picking up your rent check from the tenant and your mortgage.
I'd seriously reconsider your idea @Chris Pasternak . While that sounds like it complies in that you're "occupying" by doing that and getting your mail there, your intentions are to not actually live there. And yes your intentions are what will get you for mortgage fraud.
It is different if you intend to live there and can show circumstances that prevented that like a PCS or some other unforseen situation. That is what they would look at is that it was previously unforseen and unintended for you to move prior to purchasing the property.
Jeremy Sebes we served our country to earn this benefit. You will only bring dishonor to your service to try to pull off that "2BR scheme" suggested above. Maintain your integrity and find another way to finance your deal if you aren't going to really occupy the property.
Hi Jeremy Sebes , I'm also a veteran. I used my VA loan to purchase my current rental property. I lived in the house for 3 years before using my wife's VA loan to buy my current home. So, yes if you first own and occupy your home the VA will allow you to buy another home and rent your other home.
My entire transaction was done with the blessing of the VA. I would suggest that you live in the home for a few years and then you can buy another and not get into any hot water. Hope this helps.
You must live in the home for one full year before you can fully rent it out and declare that home as rental income. After that year, you can use your VA home loan to purchase another home. Then repeat the process.
For example: Buy a 3 bed home and rent out the two rooms while you occupy the other room for a year. After that year, use your VA loan to purchase another home. Fully rent out the previous home while you occupy the second home and repeat the process.
@Zach Perez there is a limit based on your eligibility. Say your eligibility was for $500,000 and you used $230,000 of it on the first house you only have $270,000 left for second or third purchase until the first VA mortgage is either paid off or assumed by ANOTHER Vet using his or her eligibility.
@David Krulac You're correct. I forgot to mention the eligibility limit. To clear up more room for the eligibility, you can refinance the first home you purchased under a va and convert it to a conventional loan or save enough money to put down on future purchases after using up your va loan eligibility.
@Zach Perez I assumed a VA mortgage and I think I bought 8 houses with VA mortgages, and I bought 12 house from the VA, so I have some familarity with the program.