Change Date

September 15, 2004, Change 4

·  This section has been changed to create subsection lettering.

·  Subsection f has been changed to delete a reference to “CRV.”

a. Estate of the Veteran in the Property

VA regulations at 38 CFR 36.4350 provide the parameters for the required estate of a veteran in real property securing a VA guaranteed loan.  The lender is responsible for ensuring the loan conforms to these parameters.

Generally, title to the estate shall be that which is acceptable to informed buyers, title companies, and attorneys in the community in which the property is situated.

b. Title Insurance

VA does not require a lender making a VA loan or the veteran-borrower to obtain title insurance.  The lender may apply its own title insurance requirements to VA loan transactions.  VA requires only that title to the property meet the standards described above in “Estate of the Veteran in the Property.”

c. Restrictions on the Purchase or Resale of Properties

Restrictions on the purchase or resale of the property are unacceptable to VA, with certain exceptions.  The lender must

·   ensure any restrictions fall within the exceptions provided by VA regulations at 38 CFR 36.4308 and 38 CFR 36.4350

·   consult VA where doubt exists

·   obtain VA approval where appropriate, and

fully inform the veteran and obtain his or her consent to the restrictions in writing at the time of loan application.