Changed Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering.

a. Policy

VA will allow a veteran to use an attorney-in-fact to execute any documents necessary to obtain a VA guaranteed loan.  This enables active duty servicepersons stationed overseas, and other veterans who cannot be present to execute loan documents, to obtain VA loans.

b. Requirements

The veteran must execute a general or specific power of attorney which is valid and legally adequate.  The veteran’s attorney-in-fact may use this power of attorney to apply for a Certificate of Eligibility and initiate processing of a loan on behalf of the veteran.

To complete the loan transaction using an attorney-in-fact, ensure that the general or specific power of attorney complies with state law to the extent that

·   the mortgage can be legally enforced in that jurisdiction, and

·   clear title can be conveyed in the event of foreclosure.

To complete the loan transaction using an attorney-in-fact VA also requires the veteran’s written consent to the specifics of the transaction.  This requirement can be satisfied by either

·   the veteran’s signature on both the sales contract and the URLA, as long as the veteran’s intention to obtain a VA loan on the particular property is expressed somewhere in those documents, or

·   a specific power of attorney or other document(s) signed by the veteran, which encompasses the following elements:

-   Entitlement—A clear intention to use all or a specified amount of entitlement.

-   Purpose—A clear intention to obtain a loan for purchase, construction, repair, alteration, improvement, or refinancing.

-   Property Identification—Identification of the specific property.

-   Price and Terms—The sales price, if applicable, and other relevant terms of the transaction.

-   Occupancy—The veteran’s intention to use the property as a home to be occupied by the veteran (or other applicable VA occupancy requirement).