What Happens If You Move?
VA mortgages are designed for owner-occupants only. This means you must live in the property you’re buying. You can buy a duplex or a fourplex with a VA mortgage but you need to live in one of the units in order to qualify for the zero down VA loan. But what happens after you buy a primary residence and then later you decide to keep the property but move to a new primary residence?
This is not an uncommon occurrence. Homeowners can find that they’re suddenly “landlords” when they keep their current residence yet buy a new one in which to live. This can happen when a member of the family gets transferred to another city, a homeowner wants to downsize or for a variety of reasons. Yet you bought the property as your primary residence with your VA mortgage, do you have to contact the VA and tell them it’s no longer your primary residence but a rental. What does the VA do?
Nothing, actually. VA lenders approve your loan based upon the circumstances at the time of the application. The very same way a lender approves you with regards to your monthly income or your credit score. If for example you make $8,000 per month when you apply for a VA home loan then a couple of years later your income is reduced to $7,000 per month, you’re under no obligation to tell anyone about your reduction in income, much less your lender.
In the same manner, if your credit score when you were originally approved was 650 but is now 750 then the VA doesn’t care. Your loan is approved based upon your circumstances and intentions at the time of the initial loan application.
Just continue to pay your mortgage on time; no harm, no foul.