Assuming VA Loan from my brother

[Elsie Q.]

Good day BP, I am interested in assuming my brother's VA loan as he purchased a townhome 2 years ago because he PCS to another state and was unable to sell at the time. My brother agrees that I assume his loan (without substituting my entitlement), with an agreement to refinance in about a year. Meanwhile, he is aware it will tie up his VA entitlement. He currently has renters on a one year lease until Feb 2018 paying 2900/mo. We are doing this to help him as he cannot sell the home without breaking even on a sale and he doesn't have the extra funds to fork out for his loss. This is also a great opportunity for us to invest in a 2nd property in Southern CA as he is giving it to us for balance of loan only. I am currently using a VA loan occupying my primary home for 8 years now. Questions...Do I have to occupy the home for a year when assuming VA loan per the lender? The VA stated under "loan assumptions"-there is no policy in place for owner occupancy as it has been satisfied by my brother already under VA terms, BUT lender might have a different policy. I was thinking maybe I can write a letter to let them know there are renters in place when I submit my packet for approval to see if it helps:) Has anyone been through a similar situation? We will move if we have to since it's in my same city. But if at all possible I'd really like to stay in my home. Details: Est value: 525K VA loan mortgage balance: 470K PITI: 2600/mo HOA: 140/mo Rent: 2900/mo Built in 2013/3bd/2ba Thank you for your time!