The VA recently issued revisions to its Lenders Handbook, VA Pamphlet 26-7. The changes include requirements regarding veteran eligibility and entitlement, processing VA loans, and minimum property standards.
On March 28, 2019, VA issued a Transmittal of Chapter Two of the Handbook. Key changes to this chapter concern conditions that may appear on a Certificate of Eligibility and must be met before a loan is guaranteed by VA. The updated chapter also “clarifies that a veteran who has previously used some of his/her entitlement which has not been restored may make a down payment in conjunction with using his/her remaining entitlement.” This change is effective 90 days from the date of approval.
Also, on March 28, 2019, VA issued a Transmittal of Chapter 12 of the Handbook. This chapter describes VA’s minimum property standards established to protect the interests of veterans, lenders, servicers and VA. The key changes include appraisal requirements for properties located in a Special Flood Hazard Area, safe drinking water, leased solar systems, and waivers of repair requirements. This change is effective 90 days from the date of approval.
On April 1, 2019, VA issued a Transmittal of Chapter Five of the Handbook. As part of the key changes, this chapter has been updated to reflect required documents that must be submitted to VA for prior approval of loans, an updated list of documents required to request a Loan Guaranty Certificate after closing a prior approval loan, and documents that must be submitted when a loan is selected for a Full File Loan Review. This change is effective 90 days from the date of approval.