Updates made to VA Handbook.
Chapter 2, veteran's eligibility and entitlement
Effective June 26, 2019, VA has updated Chapter 2, Veteran's Eligibility and Entitlement. It has been revised to reflect updates to VA systems and incorporate all appropriate Circulars. Please note that Circular 26-19-13 is not incorporated into this update (see Circular below).
Key changes include:
- Topic 1 describes conditions which could appear on a Certificate of Eligibility. The conditions must be met before the loan is guaranteed by VA.
- Topic 2, clarifies that a Veteran who has previously used some of his/her entitlement which has not been restored may make a downpayment in conjunction with using his/her remaining entitlement.
Chapter 5, How to process VA loans and submit them to va
Effective June 30, 2019, VA has updated Chapter 5, How to Process VA Loans and Submit them to VA. It is now titled Appraisal Process. This Chapter has been revised to reflect updates to VA systems, facilitate expeditious processing of VA-guaranteed loans and incorporate all appropriate Circulars.
Key changes include:
- Topic 3 has been updated to reflect the documents that must be submitted to VA for prior approval of loans.
- Topic 3 provides an updated list of the documents required to request a Loan Guaranty Certificate following the closing of a prior approval loan.
- Topic 4 lists the documents that must be submitted when a loan is selected for Full File Loan Review. Topic 27 provides information about appraisal processing in the event of a natural disaster.
chapter 12 minimum property requirements
Effective June 26, 2019, VA has updated Chapter 10, Minimum Property Requirements.
Key changes include:
- Topic 1 explains the differences between an appraisal and a home inspection.
- Topic 8 covers appraisal requirements for properties located in a Special Flood Hazard area.
- Topic 15 emphasizes the importance of safe drinking water.
- Topic 24 states that no value must be given to leased equipment including leased solar systems.
- Topic 44 covers the processing of requests from Veterans for waivers of repair requirements.
Circular 26-19-13, updated prior approval loan procedures
On June 11, 2019, VA released Circular 26-19-13, Updated Prior Approval Loan Procedures, which addresses joint loans. Effective immediately, lenders with automatic authority may underwrite and close loans for two or more unmarried Veterans who are each using the home loan entitlement.
Please reference the Product Profiles page for full details of the changes outlined in this announcement.