VA loan waiver exceptions

[Randall George]

Hello, I recently made an offer on a duplex that I intended to owner-occupy as I would be using a VA loan. I later found out during the middle of the deal that the owner signed a 1 year lease agreement for each of the two units. The question I have is can I still use the VA loan using a waiver saying I will occupy the property within a year. The VA requires occupancy within 60, which is considered to be a reasonable amount of time, but I would be moving in long after this, but within a year. Is this possible under an occupancy waiver?

[Bill Gulley]

No, it must be owner occupied. When did that owner lease it, after or before the sale contract. Either way, without disclosure he is in violation of the title rights to be conveyed, breach of contract. You can not encumber title after agreeing to sell, you can't have a leased property and guarantee all rights in title, the right of possession without disclosing what rights are to be conveyed. 

The seller needs to kick someone out, and ASAP! Check reasons to terminate a lease in your state, a sale with the expectation of owner occupancy is generally a reason. I'd have the seller empty a unit before closing! Good luck :)