Completing the final steps in closing on your new home comes with great relief and excitement.  At this point, it is likely you’ve prepared for your move and are all packed and ready to go. Yet there are times when an immediate move-in is not possible.

Remember the VA home loan can only be used for a primary residence and you must occupy the residence within 60 days of closing. Sometimes that’s not possible and the VA does make some exceptions for overseas deployment.

When must you occupy?

If you don’t occupy the property within that required time frame and the lender determines you have no intention of moving into the home, the VA can, in fact, call in the loan. Calling a loan means you must have the entire loan in full.

This 60-day timetable can also give the previous owners time to move out. If the sellers need another 30 days you can negotiate a temporary lease for them to pay you while they’re moving.

For those that are deployed or will be deployed during closing, the VA allows for a spouse to act as the occupant and fulfill the owner occupancy requirement. To prepare for a closing while a spouse is deployed overseas, a Power of Attorney must be drawn that allows the remaining spouse to sign on behalf of the deployed member. Such POAs must be approved by the individual lender.

Closing on a home while deployed will mean a bit more paperwork in addition to more planning.

While shopping for a mortgage, it’s critical you let us know in advance if there is a possibility you will be deployed. Given fair warning, the lender can walk you through the necessary steps needed to make sure your closing goes as smoothly as possible.