VA loans require occupancy within about 60 days of closing, but PCS orders and spouse occupancy are recognized exceptions. The funding fee ranges from 1.25% to 3.30% depending on down payment and prior use, and VA appraisals check that a home is safe, structurally sound, and sanitary — not cosmetic condition.
If you’re using your VA loan benefit to buy near Fort Hood, you’ve probably already heard a dozen different versions of “how it works” from a dozen different people. Here’s the straight version — the questions I get asked most, answered plainly.
A quick note before we start: I’m a REALTOR®, not a licensed lender, so think of this as your orientation to the process. Your VA-approved lender will confirm the exact numbers and documentation for your specific file.
Occupancy Rules
Do I have to move in right away?
The VA generally expects you to occupy the home as your primary residence within about 60 days of closing, with an intention to stay at least 12 months. That’s the baseline — but military life rarely fits neatly into a baseline, which is why the VA has built in real exceptions.
What if I get PCS orders before my 12 months are up?
This is one of the most common situations I see, and it’s specifically accounted for. If PCS orders move you before that year is complete, that’s a recognized exception — not a violation. Document the orders, keep your lender in the loop, and you’re covered.
Can my spouse satisfy the occupancy requirement if I’m still stationed elsewhere?
Yes. If military orders prevent you from occupying the home right away, your spouse’s physical presence can satisfy the requirement in the interim — as long as you certify a specific, reasonable date when you’ll personally move in, and your spouse can document it (utility bills, updated driver’s license, etc.). The key is that everything has to line up: consistent dates, consistent documentation, no hint that the “temporary” situation is really a plan to rent from day one.
Can I rent the house out later?
Yes — this is one of the biggest advantages VA loan buyers have over conventional buyers. Once your genuine occupancy period has passed (commonly treated as around 12 months, though the VA doesn’t set an exact number), converting the home to a rental is generally fine. A future PCS, deployment, or job relocation is exactly the kind of “change in circumstances” that supports an earlier conversion too. The thing to avoid is renting it out immediately after closing without ever having occupied it — that can look like the original occupancy intent wasn’t genuine, which creates real risk for you.
Funding Fees
How much is the VA funding fee?
It depends on your down payment and whether this is your first or a subsequent use of your VA benefit.
| Down Payment | First-Time Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
On a $300,000 home with nothing down, that’s roughly $6,450 for a first-time user or $9,900 for a subsequent user — but it can be rolled into your loan rather than paid in cash at closing.
Is anyone exempt from the funding fee?
Yes. Veterans with a service-connected disability rating of 10% or higher, Purple Heart recipients, and surviving spouses receiving DIC benefits pay no funding fee at all. If you think you might qualify, this is worth confirming with your lender before you assume the fee applies to you.
Property Requirements (MPRs)
What is a VA appraisal actually checking?
Two separate things: the home’s fair market value, and whether it meets the VA’s Minimum Property Requirements — meaning the property is safe, structurally sound, and sanitary. It is not a home inspection, and I always recommend getting a separate, full home inspection regardless of what the appraisal shows.
What usually trips up a Fort Hood home during a VA appraisal?
In my experience locally, it’s almost always one of these: roofing with insufficient remaining life, drainage or grading issues near the foundation, pest or wood-rot damage, and heating systems that can’t maintain 50°F in areas with plumbing. None of these are dealbreakers — they’re just items that need repair (by you, the seller, or through a renegotiation) before the loan can close.
Does the VA care about cosmetic stuff, like old carpet or paint color?
No. Worn carpet, outdated finishes, and normal wear and tear don’t violate MPRs. The one exception: peeling exterior paint on homes built before 1978, which can trigger a lead-based paint requirement.
Ready to Talk Through Your Situation?
Every PCS timeline and every VA file looks a little different, and the fastest way to get real answers is to talk it through with someone who knows both the Fort Hood market and how military buyers actually move through this process.
📞 Sujin Park Henson | (737) 203-0360 | sujinparkhenson.com
