How to Determine Primary Residence for a VA Loan

By Lynn Lauren

A borrower's primary residence is important in determining interest rate and fees for a loan. If a property is not a borrower's primary residence, it is subject to higher fees and interest rates than his or her primary residence. If a borrower has more than one property, the lender must do some basic research to determine the primary residence.

Check the borrower's federal income tax returns for the past two years. The address claimed as the borrower's address on the tax returns is considered his or her official residence.

Request a copy of the borrower's driver's license. The primary residence should be listed on the license. However, this may be inaccurate if the borrower has not updated his or her address with the department of motor vehicles.

Request a copy of the tax bill associated with the property. In most cases where an investment property is in question, the tax bill is still mailed to the borrower's primary address.

Some borrowers use post office boxes as their mailing addresses. If this is the case, the borrower will need to provide full income tax statements to show how he or she claims mortgage interest expense, and to see if rental income is generated from any property. The property without rental income is the borrower's primary residence. In the case of properties in different cities, a lender can assume the property closest to the borrower's work address is his or her primary residence.

Some borrowers switch primary residences multiple times for tax purposes. In such a case, the borrower may or may not be able to get VA financing. The VA has final say in such situations.

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