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If you are thinking of selling your property and allowing your VA loan to continue on the property, before you sign a sales contract, you should write or call the VA office that guaranteed your loan and ask for the necessary forms and instructions on how to obtain a substitution of entitlement or release of liability.
Effective March 19, 2021, lenders no longer have to submit a VA Form 26-8937 if income and/or prior approval information is already provided on the COE. In the limited instances where VA Form 26-8937 is necessary, lenders will have to submit the form to VA through a COE application.
Application for Assumption Approval and/or Release from Personal Liability to the Government on a Home Loan.
It is possible for your spouse to maintain their benefits through the veteran home loan after getting divorced. To do so, the military member must agree to stay on the mortgage and agrees to make payments on the home until the loan is repaid or the house sells.
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