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Updated over 12 years ago, 06/26/2012
What is considered a "reasonable time?"
I purchased a few properties that are bringing in a decent amount of money. I'm not a RE guru. I'm just trying to get myself up for success after the military. I'm in the last 18 months of my military contract and found a 4 unit property in Chicago that would financially set me up just fine. (Chicago is where I will be living.) Unfortunately, I'm stationed overseas.
The bottom line is that I would be able to match my current income if I can close on this property. This is even while being a non-rent paying owner occupant, even factoring in the high taxes. I don't have enough funds free to purchase the property as an investment property. However, I have not used my VA loan.
What is considered a "reasonable" amount of time to use my VA loan? I absolutely plan to live in Chicago. I know that I would be able to move in permenantly as early as September 2013. I can have my stuff moved in and go "home" regularly until then. However, I'm not sure if this counts. Any thoughs?
Hi Marie Sanders,
I'm from the Chicagoland area. A property can still be your principal residence; however, not your tax home or where you live on a day to day business due to work.
Most of the occupancy clauses state it has to be your principal residence and that you have to move in within x amount of time.
Once you close on the property, you will want to be sure that you get the property taxes reassessed ASAP. 99% of the time they will agree with your HUD purchase price and go from there.
You may run into an issue due to it being a VA loan as they have more strict occupancy guidelines. You should definitely inquire with them via a phone call.
-Steven the Tax Guy
@ Steven Hamilton II I'm closing on the property now. I paid cash for the property.
I'm able to get a Certificate of Error for 2010 and 2011. Unfortunately, I purchased the house from a company that bought it as a forclosure. So, I have no record confiming that the property was unoccupied for those years. Is there any exemption for this?
