A veteran buying a home from a for sale by owner and financing it with a VA loan can do all of the following except:

• A. Immediately rent the home after closing to make the monthly payments
• B. Use the VA loan to purchase the home
• C. Live in the home as a primary residence
• D. Refinance the loan within the first year

Answer: (A)

The key rule here is the VA loan occupancy requirement: the borrower must intend to use the home as their primary residence and occupy it as their home after closing. That means you can buy a home from a private seller with a VA loan and live in it as your primary residence, and you can refinance the loan later if needed. Renting the home immediately after closing would violate that occupancy requirement, so it’s not permitted. The other options fit: you can use the VA loan to purchase from a private seller, you can live there as your primary residence, and you can refinance the loan within the first year if you qualify for the VA refinancing programs.