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lwpat, Attorney
Category: Real Estate Law
Satisfied Customers: 25387
Experience:  Practicing attorney with expertise in easements
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Hi, My co-workers daughter signed to build a primary home and

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Hi, My co-workers daughter signed to build a primary home and was approved of a VA loan. Now that it is time for settlement, she realized she cannot live in the home because of her job. What options does she have now to deal with the situation.
Thanks for using JA. I will do my best to answer your questions. DON’T FORGET the your deposit is not used to compensate me until you rate my service.

Unfortunately she is bound by the contract with the builder. If she does not complete the contract, the builder can sue her for specific performance plus damages.

Specific performance grants the plaintiff what he actually bargained for in the contract rather than damages (pecuniary compensation for loss or injury incurred through the unlawful conduct of another) for not receiving it; thus specific performance is an equitable rather than legal remedy. By compelling the parties to perform exactly what they had agreed to perform, more complete and perfect justice is achieved than by awarding damages for a breach of contract.

Specific performance is used to enforce a contract for the purchase of land.

At this point all that she can do is to negotiate with the builder to see if she can get out of the contract with a minimal payment, place the home on the market for sale or possibly rent out the property. The problem with renting is that she would not be able to obtain another mortgage.

I know that this is not what you wanted to hear but please do not shoot the messenger and please continue if I have not fully answered your question.
Customer: replied 4 years ago.

She has been told that she cannot rent becuase she signed it as a primary residence. She has to live in the house no matter what ,for at least a that so?. So she cannot rent it now that she bought it as primary home ?and will not be able to live in it immediately?


With a VA loan she is required to use it as her primary residence. She had to certify that it was going to be her primary residence in the application. If she cannot live in it immediately she may be able to obtain a waiver if she has a good reason and the VA finds that the amount of time before she will occupy is "reasonable". The longest she could probably obtain a waiver is 12 months.
Customer: replied 4 years ago.

What if she changes the VA loan to regular loan. are the rules same for primary residence? thanks

No, the rules are not the same. However, if she indicates that it is going to be a rental then it will be harder to obtain a loan and the interest rate will be higher.
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