Can anyone tell me where I can possibly find a clarification on the length of time I have to live in my new apartment building as my primary residency, before I can move out and rent it for profit? The VA is not clear on the length of time. It just states: I have to move in within a reasonable time from closing.
Please help me !! I'm a 1st time home buyer.

Thank You,
Edited by MortgageGuru

This message has been edited. Last edited by: MortgageGuru,

Your likely not going to find anything on how long you have to occupy a property as a primary residence before renting it out. Bear in mind this. If the lender or VA has reason to believe that you bought the property for a rental and not your residence and you can not provide evidence otherwise then the lender will have the option of calling your note. Basically, you'll be given roughly 30 days to pay your loan off in full or have the property foreclosed on. Your regular monthly payment would not be accepted during that period. It is a rare that it happens and I have only heard of it happening and have yet to meet anyone with first hand knowledge of it. However, with guidelines tightening you can bet that fraud prevention is increasing behind the scenes.

Paul
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I agree with Paul. YOu are attempting to defraud the US Government. The FBI has jurisdiction over such matters and have really cracked down this year. You also only get one VA loan at a time. If you are caught, you may find yourself not only owing the amount in full on demand, but could be arrested and charged.

I wouldn't go so far to accuse them of attempting to defraud the government. There are a lot of situations that can easily occur were someone has to move shortly after closing.

Also, you can have more than one VA loan at a time and even if your eligibility is used up on another loan or from a loan assumption then you still have the FHA Veterans loan that can be done as well.

Paul
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I understand, but given the tone of the question, it seems as if they where buying to rent and not live. Many people due to circumstances have to move and rent versus sell.

How can you have 2 VA loans?

As long as you have enough entitlement left over from your current VA loan combined with any down payment amount to equal 25% of the loan amount, you can have multiple VA loans.

Paul
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Thanks. Just curious. Never used my VA - house came with wife. We always had way to much equity on refinancing to use VA.