You just signed your closing papers and took advantage of your VA home loan benefit to buy your next home. Your funds are wired and your buyers have signed their documents as well. You can’t wait to move into your new home. You hand over your keys to the buyers and the agent on the other end tells you there’s a slight problem—the sellers can’t move out just yet because the home they’re buying isn’t finished and needs a couple of more weeks. What to do?
VA guidelines require buyers to move into the property within 60 days. There are of course exceptions for those deployed or otherwise working overseas, but the 60 day requirement is the rule. If you find you have no place to stay, your first option is to simply find a short term rental or an extended stay hotel. But there’s another issue. You own the new home because you signed your closing papers saying so. It’s the sellers that need to find a temporary place to stay, right?
Whoever makes the move, VA guidelines do make allowances for a lease-back. If the sellers of the home can’t move right away for whatever reason, a lease agreement can be put together charging the occupants rent for the time they need before their next move. If the lease agreement is put together before the closing takes place, your lender will want to review the lease to make sure it’s only for a short term. This is probably the easiest way. Take care of the issue before the closing takes place, and not wait until the day of closing to find out you can’t move into the home right away. Temporary lease-back agreements aren’t all that common but they can be used when needed.