1. I heard about the 60 day move-in rule for VA mortgages. How soft/hard is this rule and how is it enforced? IE would one be foreclosed if it took more than 60 days to renovate and move in?
2. Is there a minimum period of ownership? IE can a VA loaner sell a month after buying?
3. What is the role of the VA appraiser and what is the criteria for appraisal?
I can't tell you how hard or soft the rule is. I can tell you that if you are planning on using the VA loan to acquire a house in order to flip it you are going to have a rough time of it. Most housees that are for sale below market value won't meet HUD or VA's standards. If VA were to audit the loan and they see that fraudulent activity has offurred then what they will do is notify the lender by denying insurance on it. If that happens then you have a problem.
There is no minimum time period for ownership of the property. However, if your intent is to sell the property then be aware that there are minimum time periods of ownership for sellers should the buyer be getting a mortgage to finance the property. This goes for all conventional and government insured loans.
The VA appraiser is going to do 2 things. He will give a value to the property and inspect it enough to ensure it meets the VA guidelines for loan insurance. Basically, as long as the house is in move in ready condition with no repairs or defered maintenance then it's good to go.
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This message has been edited. Last edited by: Mrsjvb,
