On January 6, 2022, the Department of Veterans Affairs (“VA”) published Circular 26-22-02 announcing an update to VA Form 26-0592, Counseling Checklist for Military Homebuyers (Form ID: 260592.VA). Per the Circular, VA Form 26-0592, which must be provided to all active-duty service members applying for a VA-guaranteed home loan, has been updated to include information regarding recent VA home loan policy changes.
The checklist now explains how a Veteran with a pre-discharge claim pending can pursue exemption form the VA funding fee and advises that the Veteran must obtain a proposed or memorandum rating from VA prior to the loan closing date. It also includes directions for active-duty Service members awarded the Purple Heart to provide documentation of the award prior to loan closing to be considered for VA funding fee exemption.
Additional verbiage has been added regarding foreclosure. New language states that a decision to “walk away” from the house and mortgage without seeking assistance from the loan servicer may be considered “bad faith” and the subsequent foreclosure will result in a loss of VA entitlement.
The form also adds language recommending that the Veteran should hire a qualified home inspector to carefully inspect the home before a purchase, and that the VA appraisal is not the same as a home inspection.
Circular 26-22-02 states that the revised form is available for immediate use. Accordingly, DocMagic has updated the Counseling Checklist for Military Homebuyers (Form ID: 260592.VA) with the new model language.
If you have any questions regarding this article, please contact DocMagic’s Compliance Department.
