In search of VA loan with delayed occupancy

[Benjamin Hazlett]

Hello folks!

My wife and I are looking for a VA lender that will allow us to occupy the property once we return from overseas assignment. We have a property in mind and are looking to make an offer however, all the lenders we have spoken too say we must occupy within 60 days of closing. I will be retiring from the Army next year and will be able to occupy in March 2023. Please dm if you know a lender that can assist.

[Joe Facenda]

Unfortunately, you can not buy now and move in next year using a VA loan. It is not the lender but VA loan guidelines. In fact, all owner occupied loans that follow VA, FHA, Freddie Mac or Fannie Mae guidelines require that the owners move in within 60 days of settlement.

You can only buy now and move in next year if you get an investor loan.

Yes they run about 1/2 point higher than owner occupied loans and maybe even higher than that compared to a VA loan.

But where do you see rates a year from now?  

If you get a VA loan a year from now, is your best guess that it will be higher or lower than an investor loan today?

And where will that property be priced a year from now?

In the end you may be better off buying as investor today than an owner occupant a year from now. 

Of course, VA loans are no downpayment and investors loans require downpayments so if cash on hand is of concern, then you will need to wait but otherwise, maybe buying today is the better move.