- home loan When purchasing a home using the VA home loan, does the property have to be the veterans primary residence?
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Question by sugadoot: When purchasing a home using the VA home loan, does the property have to be the veterans primary residence?
My husband and I purchased our first home last year using his VA home loan and now we may have to relocate to another state for work. We do not plan on selling the house but instead plan on renting it out. Will that forfeit the VA home loan and will we have to change our loan terms?
Best answer:
Answer by Meggerz
Yes, it does have to be a persons primary residence for a minimum of 2 years.
It’s a situation where unless the finance company finds out about it, they can force you pay in full the loan amount. People try to get around it, but once they find out, the VA *will* pull their backing of the loan. It happened to someone at my husband’s NOSC – they relocated due to PCS and it was less than 2 years and were forced to refinance.
You also wont be able to get another VA loan until this one is paid off.
Response: The VA loan backing is one aspect of it. Your mortgage company may have rules about how long you have to hold it as your primary residence. You signed those agreements. Read them, or have a lawyer look them over to make sure. Some companies are understanding of active duty military, some aren’t.
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The VA says you have to intend to use it as your primary residence. If you have only used it that way for a short time- they may investigate you to be sure you did not lie when you closed- but they do not intend to hurt an honest Vet that was forced to move against their will for work.
The VA require that you use this residence as a primary place of residence when purchasing the property for a minimum of 2 years. VA recognize that there might be job changes, increase in family members, parents and grandparents coming to reside in the veteran home when the veteran might need to change residences for a myriad of reasons and would allow such a move without penalty to the veteran.
If this is a job change requiring you to relocate to another state, you would not have to do anything with the mortgage company contrary to what others might say. You would be required to maintain the monthly mortgage payments since the insurance is collected with the monthly mortgage payment there would not be a change needed there.
You may also rent the property to whom you would want. There are inherent problems with absentee property managers, therefore you might need the services of a professional property management company.
You might hire them to interview and rent the property to potential tenants with all other related things sent to you in writing or email for your decision as to the solution. You might give then full authority to act on your behalf. The more they do the more they charge for their services.
You might would want to interview a couple of companies found in the yellow pages or you may google property managers followed by the city and state in which the property is located. Make sure your property manager is a local company with an office located there.
Property managers are a good source of information as to if you would need additional things according to your state in renting property.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”