Tips & Special Topics
Using VA Form 26-6382 for Loan Assumption
Added January 6, 2012
VA Form 26-6382, Statement of Purchaser or Owner Assuming Seller’s Loan, is used during VA loan assumption. The form, to be completed by the buyer, assists the VA in gathering information for releasing liability to the government on the home loan held by the seller.
If the buyer plans to substitute his or her own entitlement in place of the seller’s for the VA loan assumption, the VA Form 26-8106 will need to be submitted along with VA Form 26-6382. Also necessary for VA loan assumption is VA Form 26-6807, Financial Statement.
Form 26-6382 provides the VA with information about the person assuming the loan as well as facts about the existing government-backed loan. The basic information requested on the form includes:
• Section I – Loan Number, Name of Seller, Property Address
• Section II – Name of Purchaser(s), Military Verification, Service and Social Security Numbers, Sales Price of Property, Balance of Existing Mortgage, Means of Payment and Financing, Terms of Repayment of Loan Assumed, and Five-year Address History of the Purchaser(s).
The Assumer/Purchaser must sign the form and return to the nearest VA Regional Office where a Loan Guaranty Officer will review for approval. A VA loan professional can help provide the right address.
By signing VA-Form 26-6382, the Purchaser certifies that the attached Financial Statement is for VA use only and the lender who holds the mortgage on the property being purchased from the seller. The Purchaser understands that the VA will not examine the title of the property. Responsibility of determining clear title is on the Purchaser. The Purchaser assumes all liabilities and obligations once release of seller’s liability and/or substitution of entitlement occurs.
If all the forms are reviewed and approved by the VA, and in some cases the mortgage servicer, the loan assumption can go forward. There are benefits to VA loan assumption, which can include getting a lower interest rate than what’s available in certain markets. The Assumer/Purchaser must qualify for the VA loan he or she assumes.
For additional information about whether VA loan assumption is right for you or for questions about completing VA Form 26-6382, contact a VA loan professional.
