Occupancy Requirements for IRRRL

[Renzo D.]

Hi All,

So my wife and I just closed on a refinance for our home, we went from a VA loan to a VA IRRRL, and from 4% to 2.875%. Everything has gone well so far, except for one thing that worries me. The refinance documents state there's an occupancy requirement for the home. I'll quote what the loan document states.

6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.

Is this just boilerplate? Or should I worry about this, as of today I have two days to cancel the refinance.

The loan documents have a form titled "interest rate reduction refinancing loan worksheet", VA Form 26-8923, as well as a form titled "STACKING ORDER FOR INTEREST RATE REDUCTION REFINANCING LOANS (IRRRLs)". But in the loan details section it just states the loan type as "VA".

Lastly, we didn't have to have an appraisal done for this refinance, and the loan officer assures us that it is a VA IRRRL loan.