If you are like thousands of Veteran’s the moment you decide it’s time to retire, and settle into Civil life, is an exciting one. As a Lender, we often get questions about that temporary period between Base Housing and finding their Dream Home.
Veterans are allowed something called “Permissive TDY” or temporary duty to go house hunting prior to retirement from the military.
As a preparation for their “post” military career, the military allows members time to get settled, interview for jobs, and look for housing that will work for them once they leave active duty. We’ve worked with several soldiers stationed in Japan and Germany who wanted to live in North Carolina after leaving their military career.
The VA rules for occupancy state a veteran approved for a VA mortgage must move into the property within 60 days of closing on their new home. But what about those who find a home, purchase it, but can’t move in within 60 days because their military retirement date is several months away?
The VA agrees to examine special needs requests in such instances on a case-by-case basis, but there are several factors at work when this applies. If a VA loan applicant has a spouse that could move into the property within 60 days, there is no need for additional attention on the loan beyond what’s required to establish the spouse’s occupancy. Our underwriters are very familiar with this situation, and we can easily accommodate this type of closing.
The VA may also require the borrower to show he or she can afford to maintain a separate residence along with the VA mortgage payments in the interim between closing the loan and moving into the new home. It’s important to remember, in these circumstances, that the Veteran’s Administration does NOT allow for income to be used for qualifying purposes unless: the co-borrower is a SPOUSE (can’t just be engaged) or the co-borrower ALSO has full Military benefits.
Veterans who want to purchase a “post military” residence beyond the 60 day period of leaving the Service have a more difficult road. Vets can also submit their situation in writing to explain why they must delay moving in past the 60 day mark. The VA may accept a later move-in date, but generally nothing longer than 12 months past the closing date of the VA loan. The VA is actually fairly strict about this, requiring veterans to submit proof of a retirement date and to submit in writing intent to take possession of the home in a specific date range.
If you have questions about qualifying for a VA Home Loan, or you want to know what payments would be on a certain property in North Carolina, please call Steve Thorne, 919 649 5058. We love helping active duty and retired military families locate to our area, and we genuinely appreciate your service!
on 12 August 2016 I submitted my voluntary retirement paperwork from active duty service, and simultaneously signed a contract to purchase a house in the same location where I am currently serving. Property Closing date is 24 October 2016, and I am using a VA loan with the property occupation as my primary residence occurring on 24 October 2016. My retirement date is 31 August 2017, 30 years of Active military service. My mortgage lender is very concerned that the VA will refuse the loan or there will be difficulties since I have submitted my retirement paperwork prior to closing on the property. Currently I completed all loan paperwork, VA approved and will lock in my rate on 29 August 2016. Should I be concerned or just cross my fingers, shut my mouth and pray all will be well? Thank you, Paul
Paul, if you are already in the middle of this, all you can do is cross your fingers… Best of luck!
Mrs. Thorne,
Amazing that this is not mentioned in the myriad of retirement briefings I have received. I understand the lending institutions concerned, however there should be a clear statement by the VA in regards to this benefit referencing the issue with purchasing a property during the retirement process. Hope is not a course of action, but that is where I am it today.
Thank you again,
Paul