Washington, D.C. 20420 - Veterans Benefits Administration
Veterans Benefits Administration Department of Veterans Affairs Washington, D.C. 20420
Circular 26-16-01 January 14, 2016
Policy Clarification for Non-borrowers on Title Documents
1. Purpose. The purpose of this Circular is to clarify questions that have arisen regarding the Department of Veterans Affairs (VA) policy on the use of the VA home loan guaranty. When a loan is originated that includes a Veteran borrower and a non-borrower spouse, the Veteran borrower must sign all documents including the mortgage note and the mortgage deed of trust (as required by state law). The non-borrower spouse must sign either the mortgage note or the mortgage deed. This does not apply to joint loans as outlined in Chapter 7 of the VA Lenders Handbook Pamphlet 26-7, as all borrowers must sign all documents including the mortgage note and/or the mortgage deed of trust (as required by state law).
2. Background. VA is aware lenders occasionally make loans to Veterans who wish to use their home loan benefit to purchase a home and include their spouse in ownership, but the spouse does not wish to be on the mortgage loan. Including the spouse on the deed, but not on the mortgage note can create a problem in the event the loan was to be foreclosed because the non-borrower's ownership in the property could defeat the foreclosure action. Delaying or preventing a foreclosure increases foreclosure claim cost to the government and Veteran.
3. Policy. This circular is not outlining a policy change; VA does not allow an individual to take title to a property if that individual is not on either the mortgage or a deed of trust. Accordingly, if a spouse or other owner does not want to sign a mortgage note and be obligated for a VA-guaranteed home loan that individual must sign a deed of trust.
4. Rescission: This Circular is rescinded January 1, 2018.
By Direction of the Under Secretary for Benefits
Michael J. Frueh, Director Loan Guaranty Service
Distribution: CO: RPC 2021 SS (26A1) FLD: VBAFS, 1 each (Reproduce and distribute based on RPC 2021)
(LOCAL REPRODUCTION AUTHORIZED)
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- education how to clear up the title on your real estate
- table of contents thrift savings plan home
- mortgage closing checklist
- about loans liens the ucc1 financing statement
- date of loan loan number telephone number hours of
- frequently asked questions regarding texas home equity
- closing title costs
- washington d c 20420 veterans benefits administration
- consumer alert what should you do if you learn that a
- section a loan closing policies overview
Related searches
- veterans benefits discount card
- veterans benefits administration
- veterans benefits medical
- veterans benefits advisor job description
- veterans benefits administration phone number
- veterans benefits advisor
- nys veterans benefits advisor
- veterans benefits advisor jobs
- veterans benefits advisor near me
- veterans benefits administration jobs
- d c for molar pregnancy cpt
- d c superior court rules