Change Date

September 15, 2004, Change 4

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

a. General

Section 203(b)(2) of the National Housing Act permits a veteran to obtain slightly better terms than a non-veteran when obtaining Federal Housing Administration (FHA) mortgage financing.  Although this involves FHA loans, VA is charged with making the entitlement determination for benefits under this provision.  VA will issue a Certificate of Veteran Status, VA Form 26-8261, to any eligible veteran-applicant to use when obtaining an FHA loan.

b. How to Apply

The lender may assist the veteran in following these procedures:

Step

Action

1

Obtain VA Form 26-8261a, Request for Certificate of Veteran Status, from the nearest VA Eligibility Center.

Reference:  See Appendix A for a listing of VA offices.

2

Complete the form as thoroughly as possible.

Failure to complete necessary items may cause delays.

3

Attach proof of military service to the form.

Reference:  See section 4 of this chapter for further details on the required proof of military service.

4

Submit the form and attachments to the appropriate VA Eligibility Center.

c. Veteran Found Ineligible

Additionally, veterans who apply for VA benefits on VA Form 26-1880 and are found ineligible, may be found eligible for the FHA program.  If so, they will be issued an FHA Certificate of Veteran Status concurrent with VA’s notice of denial of eligibility for the VA program.