Guidelines

Guidelines. Guidelines to consider for a Veteran customer that obtains a divorce from his or her Veteran spouse with both parties jointly obligated to a loan financed with the VHPB. and the Veteran whose VA Eligibility was used retains the house. A. Action to be taken when the house is retained by the Veteran spouse whose VA Eligibility was used for the loan. B. Action to be taken when the house is retained by the Veteran spouse whose VA Eligibility was not used for the loan. C. Action to be taken when the house is retained by the Veteran spouse whose VA Eligibility was used for the loan and the remaining spouse is released by the VA of liability and choses to reapply with the VHPB for another loan. (also see VA manual) 1. (A) (B) Applicant must submit a copy of the Divorce Decree. The VHPB will proceed with the next step unless the terms of the divorce render the VHPB unable to do so or make it unwise to proceed. 2. (A) Applicant must submit a copy of the Quit Claim Deed on the property currently secured by the VHPB that shows the applicant has relinquished his/her right to the property. 3. (A) The Veteran homeowner whose VA eligibility was used and who retains the house must contact the VA and request that his/her spouse be released from liability by the VA. 4. (C) If the VA releases the Veteran loan applicant from liability, the applicant may apply for a VHPB loan using his/her VA eligibility. 5. (C)The Veteran applicant’s original VHPB debt must be used as a liability when evaluating the loan request unless he/she applies for a release of liability from the VHPB and the release is granted. 6. (A) Before the VHPB will consider the release of the Veteran applicant from the current VHPB loan, the Veteran homeowner who retains the property and whose eligibility was used must submit credit and income data in a manner prescribed by the VHPB and qualify for the existing loan on his/her own merits. 7. (A) If the veteran whose eligibility was used and who retains the property cannot qualify for the existing loan on his/her own merits, the veteran applicant whose eligibility was not used may apply to the VHPB for the release of his/her liability if the current homeowner has made at least twelve consecutive, timely monthly payments.