VA issued Circular 26-19-13, updating approval loan procedures for unmarried veterans. Per the Circular, lenders with automatic authority are no longer required to obtain VA’s approval prior to underwriting and closing a loan if 2 or more unmarried veterans are each using the home loan entitlement.
However, lenders must still obtain VA’s prior approval in the following situations:
- A joint loan to a veteran and a non-veteran (not spouse);
- A joint loan to a veteran and another veteran (not spouse) who will not be using entitlement;
- Interest Rate Reduction Refinance Loans made to refinance delinquent VA loans; and
- Loans secured by less than a first lien.
The updates went into effect June 11, 2019.
