One of the most common situations lenders have to deal with regarding VA home loans is when a veteran is preparing to retire from the military. Vets are allowed something called “Permissive TDY” or temporary duty to go house hunting prior to retirement from the military.

This is generally because a military career often requires a veteran to be out of the country or far from home for much of that career. The military allows its members to take time away from work to prepare for retirement–house hunting is an important part of that preparation.

We’ve discussed VA requirements for occupancy elsewhere in this blog–the VA rules for occupancy state a veteran approved for a VA mortgage must move into the property within 60 days of closing the deal on the home. But what about those who find a home, purchase it, but can’t move in within 60 days because their military retirement date is several months away?

The VA agrees to examine special needs requests in such instances on a case-by-case basis, but there are several factors at work when this applies. If a VA loan applicant has a spouse that could move into the property within 60 days, there is no need for additional attention on the loan beyond what’s required to establish the spouse’s occupancy and get VA acknowledgment and/or approval for the arrangement.

Vets can also submit their situation in writing to explain why they must delay moving in past the 60 day mark. The VA may accept a later move-in date, but generally nothing longer than 12 months past the closing date of the VA loan. The VA is actually fairly strict about this, requiring veterans to submit proof of a retirement date and to submit in writing intent to take possession of the home in a specific date range.

What the VA will not accept is a statement that the retirement date is “soon” or “within a few years”. The VA may also require the borrower to show he or she can afford to maintain a separate residence along with the VA mortgage payments in the interim between closing the loan and moving into the new home.

The additional financial burden is a legitimate concern, but if the borrower can show the situation is financially manageable loan approval may not be affected. Every situation is different; the VA examines them individually.