VA home loan occupancy requirements

VA loans are a benefit provided to active-duty military personnel, veterans, and their spouses to help them afford a home.¹ To make sure VA loans are used for housing rather than for buying investment properties, the Department of Veterans Affairs requires borrowers to live in the home as their primary residence. If you're planning to buy a home with a VA loan, it's important to understand VA home loan residency requirements.

Residence occupancy requirements

VA loan residency requirements state that you must use your VA loan to buy a primary residence. The VA loan program was created to help military personnel and veterans afford a home, not to finance income or investment properties.

The VA’s lender handbook makes this clear:

• You must “personally move into the property and use it as (your) home within a reasonable time.”
• “Reasonable time” generally means within 60 days of closing.
• If you can’t move in within 60 days, you may still qualify if you can provide a specific move-in date. For example, after a deployment or completion of renovations.
• The VA notes that moving in more than 12 months after closing usually isn’t considered reasonable.

When applying, expect your lender to ask about your plans and timeline for occupancy.

Occupancy exceptions for families

Relocating can put extra pressure on military families, and the VA allows some flexibility in these cases. If a service member is on active duty and can’t personally move into the home within a reasonable time, the occupancy requirement still may be satisfied if a spouse or dependent child lives in the home.

Keep in mind that lender approval is required for these arrangements, and some lenders may not accept dependent occupancy to fulfill the rule.

Occupancy exceptions for deployed military personnel

Because deployment is considered a temporary duty status, the VA allows deployed borrowers to demonstrate a valid intent to occupy rather than immediate physical residence.

If a spouse or dependent will live in the home during deployment, that occupancy satisfies the requirement. For single service members, intent to occupy the property upon returning from deployment typically meets the VA standard. In both cases, the VA recognizes deployment as a temporary interruption, not a violation, of occupancy rules.

Occupancy requirements for a VA loan refinance

A VA loan refinance can reduce your mortgage rate or help you borrow your home equity. There are two main types of VA refinance loans, and the occupancy rules work differently for each.

VA cash-out refinance

• A VA cash-out refinance allows you to borrow the equity in your home by replacing your original loan with a new one based on your home's current value. You pay off the original loan and keep the difference in cash.
• You will need a new appraisal and a credit check.
• Borrowers are held to the VA home loan occupancy requirements, meaning you must certify that the property will continue to be your primary residence.

VA Streamline refinance

• A VA Streamline refinance also is called an Interest Rate Reduction Refinance Loan (IRRRL). ²
• The underwriting process on a VA Streamline loan means less paperwork. The VA doesn’t require a new appraisal, although some lenders may order one.
• Borrowers only need to certify that the home was their primary residence during the original VA mortgage. You don’t have to live there now.

You can use a VA Streamline loan to convert your current home into a rental and use your VA loan benefit to buy a new primary residence.

Timeline for renting out your home

VA mortgages are government-backed loans designed to help borrowers buy primary residences, but once you’ve met the occupancy requirement, you’ll usually have the flexibility to rent out your property.

• After 12 months: While the VA does not require you to live in the home for a specific length of time, many lenders interpret 1 year of occupancy as meeting the VA’s intent-to-occupy requirement.
• Before 12 months (PCS or deployment): The occupancy requirement can be met through a spouse or dependent if the service member is unable to occupy the home within a reasonable time. When a borrower receives Permanent Change of Station (PCS) or deployment orders, lenders may approve an earlier transition to rental status once documentation is provided.
• After 210 days (IRRRL refinance): An IRRRL cannot close until at least 210 days have passed since the first payment on the original VA loan, and the borrower has made six consecutive monthly payments. IRRRL borrowers need only certify they previously occupied the home as their primary residence.

Be sure to check with your lender before turning your home into a rental, since they’re responsible for ensuring you meet the VA’s standards.

FAQ

Here are answers to common questions about VA loan residency requirements.

Is there a required time of occupancy?

The VA requires you to move into your home within 60 days of closing. Extensions may be allowed if you provide a specific move-in date, such as after a deployment or when renovations are complete. Once you’ve lived in the property for 12 months, you can typically rent it out. Be sure to review your VA loan terms with your lender to confirm any additional occupancy rules that apply to your situation.

What are the occupancy requirements if I’m retiring from the military soon?

If you’re within 12 months of retirement, the VA may let you delay your move-in date more than for other borrowers. You’ll need to show your retirement paperwork at closing to verify your timeline and your ability to make payments.

Does the VA check occupancy?

The VA doesn’t perform inspections, but lenders are required to confirm occupancy. If your lender suspects you don’t intend to live in the home, they may ask for more documentation or deny your loan.

Are there other benefits that can help with housing?

Yes. In addition to the VA home loan program, qualifying veterans with service-connected disabilities also may be eligible for VA housing grants. These grants can help cover the cost of adapting a home to meet accessibility needs, providing another way the VA supports long-term housing stability.

The bottom line: VA home loans are designed for primary residences

The VA occupancy requirements help ensure these loans for veterans are used to support primary residences, not investment properties. By understanding the rules and exceptions, you can use your VA loan benefit with confidence. Whether you’re buying, refinancing, or preparing to rent out your home, staying aligned with VA guidelines will help you get the most from this program.

Ready to explore your options? Apply online with Rocket Mortgage today to see how a VA loan can work for you.

¹ Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

² The VA Streamline program may have stricter requirements in some states. In order to qualify for the VA Streamline program, you must have a VA loan. The VA Streamline is only available on primary residences. Cash-out transactions are not allowed. In order to qualify for a VA Streamline, a 0.5% minimum reduction in interest rate on the previous fixed-rate loan must occur if the new loan will be a fixed rate or a 2% minimum reduction in interest rate on previous adjustable rate mortgage loan must occur; a minimum of 6 months of consecutive mortgage payments must be paid on the current loan at the time of application. Some states may require an appraisal. Additional restrictions/conditions may apply.