Change Date

September15, 2004, Change 4

69.                This section has been changed to create subsection lettering.

a. What Constitutes Misuse?

A basic requirement of the law governing the VA home loan program is that the veteran has a bona fide intention of occupying his or her property as a home.  Home loan entitlement is not being used properly if the veteran arranges to sell or convey the property to a third party prior to closing the loan.

b. What to Do

Contact the VA Regional Loan Center with jurisdiction over the loan for advice regarding any case in which there may be a question regarding the legality of entitlement use.