Hello BP community, I am a new member and eager to learn more about REI. I have a question regarding the VA Loan. I am an active duty military member and used my VA Loan last summer to purchase a SFH. My wife is also in the military and has not yet used her VA Loan. I remember seeing a clause stating that the residence you purchase has to be your primary residence when you use the VA Loan. We have been discussing using her VA Loan to purchase a long term rental but is that illegal due to that home not being our primary residence?
Also, any recommendations regarding VA Loans is appreciated.
If you're buying a home "back home," or at a permanent duty station while deployed, a spouse can fulfill the occupancy requirement on the veteran's behalf.
VA loans are more flexible than any other Agency loan product out there in every which way except the condition of the home being lent on, as you already know from your home purchase.
Hey @Sean McDonnell , your understanding is correct, VA loans must be owner-occupied at the time of purchase. You can, however, purchase a property with a VA loan, and then move out of it and turn it into a rental some time later. You may have a unique benefit in that both you and your wife are VA-eligible, which *may* possibly mean that you could move out of your VA home, rent it out... then go on and buy another house VA, but this time with your wife's VA eligibility instead of your own, which is already being used for your prior home that's now a rental.
You'd need to talk to a particularly creative lender about that, I'm not sure if it would fly with VA. Typically when you move on to buy your next home with VA, they make you refi the old one in order to transfer your entitlement to the house you're buying, but since you're both eligible, there may be some room for creativity there.
Thank you and your missus very much for your service.
@Nick G. Thanks so much for your insight. Very helpful. Do you by chance know how long I have to live in the home as my primary residence before I use it as a rental?
You don't need to refinance the home when you move out of it. I have a house at my previous duty station and current duty station. Both are VA (my wife is not military). You just can't exceed the VA lending limit without having to come up with a down payment. As far as the amount of time that you live in it, I've heard a year. However, I don't remember that being written on any of the forms.
@Sean McDonnell What Jon says is true, all depends upon the VA loan limits for your area, and of course the price of what you're buying.
To answer your question Sean, you will sign an affidavit that says you intend to live in the property for at least one year. However, there are allowable cases for when someone needs to move out prior to those 12 months for specific life reasons.
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