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Topic 5: Assumptions: Holder/Servicer Processed
Change Date: March 2, 2026
· Topic 5, section b, table 7 has been updated to include VA Form 26-10291, Assumption Entitlement Acknowledgement, announced in Circular 26-24-9, as item 21. All subsequent items have been renumbered.
· Topic 5, section b, table 7, item 13 has been updated to include lender’s provision of invoices for itemized fees under Circular 26-24-19. · Topic 5, section b, table 7, item 17 has been updated to remove the credit report invoice as the credit report invoice is now included in item 13.
· Topic 5, section b, table 7, item 25 (formerly item 24) has been updated to include Verification of Rent or Mortgage, Child Care Statement, and documentation of secondary borrowing as outlined in Circular 26-24-17.
· The “Alive and Well” statement, included in table 7 item 25 under Other Necessary Documents, has been updated to “Alive and not Missing in Action” statement for consistency with VA Lenders Handbook 26-7 Chapter 9 Topic 8. a. Background
Loan holders or servicers with automatic authority must:
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· Remit the funding fee to VA, or if the assumer is eligible for a fee waiver enter an exempt assumption record in VA’s Funding Fee Payment System (FFPS) within 15 calendar days of loan closing ; and
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· Complete all necessary VALERI reporting as described in VA Servicer Handbook 26-4 Chapter 3.04; and
· Submit the credit package and a copy of the executed deed and/or assumption agreement to VA within 45 calendar days of loan closing. A stacking order is provided in section b. The file should be uploaded as a PDF into the VA Loan Electronic Reporting Interface (VALERI) under Documents, as Document Type: ‘Release of Liability’.
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Additional information is available in Chapter 5 of VA Lenders Handbook M26-7.
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38 U.S.C. § 3729(c)
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38 C.F.R. § 36.4313(e)(2)
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38 C.F.R. § 36.4303(l)(1)(A)
b. Assumption Stacking Order:
Holder/Servicer Processed Assumptions Table 7: Holder/Servicer Processed Assumptions
Order Document
1 Servicer or holder cover letter with specific point of contact, email address and phone number.
2 VA Funding Fee Receipt (screenshot from FFPS is acceptable)
3 VA Form 26-8937, Verification of VA Benefits (if applicable)
4 [If Substitution of Entitlement] VA Form 26-8106
5 [If Substitution of Entitlement] VA Form 26-1880 or Certificate of Eligibility for seller and purchasing Veteran
6 Evidence the assumed loan was current at the time of transfer
7 Quit Claim Deed or other recorded document with transfer of ownership with VA clause, or if not included, signed assumption agreement by all parties (seller, assumer, servicer/holder)
8 Original note and all riders.
9 Agreement creating liability to holder and VA (fully executed), if not executed as part of the quit claim deed or recorded transfer of ownership document in item 7
10 Assignment of Escrow (if applicable)
11 Purchase/Assumption Contract or Divorce Decree
12 URLA
The initial and final application to be provided in the loan file. The final should be fully executed by the borrower(s) at final terms of the loan. 13 Closing Disclosure Statement or American Land Title Association (ALTA) statement if an investment transaction only, and invoices for itemized fees under Circular 26-24-19.
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14 All Loan Estimates
15 VA Form 26-8497, Request for Verification of Employment, and/or all other verifications of income such as pay stubs and tax returns. Any income documentation obtained during processing should be provided in the loan file.
16 CAIVRS: assumer and all co-assumers
17 All credit reports obtained in connection with the loan and any related documentation, such as explanations for adverse credit if required.
18 VA Form 26-8497a, Request for Verification of Deposit, and/or other related asset documents such as gift letters (Alternative documentation: Original or certified true copies of last two bank statements). Any asset documentation obtained during processing should be provided in the loan file.
19 For Automated Underwriting cases: Feedback Certificate and underwriter’s certification
20 VA Form 26-6393, Loan Analysis, including any necessary explanations regarding the underwriter’s determination of creditworthiness.
21 VA Form 26-10291, Assumption Entitlement Acknowledgement
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22 VA Form 26-0592, Counseling Checklist for Military Homebuyers , if the assumer is on active duty.
23 VA Form 26-6381 (Sellers Document)
24 VA Form 26-6382 (Buyers Document)
25 Other necessary documents (for example – but not limited to, Verification of Rent or Mortgage, Child Care Statement, Adjustable Rate Mortgage/Hybrid Adjustable Rate Mortgage disclosure, Power of Attorney, Alive and not Missing in Action statement if used, lenders loan quality certification, and secondary borrowing documentation as outlined in Circular 26-24-17)
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12 C.F.R. § 1026.38
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38 C.F.R. 36.4340(f)(2)(iii)
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Chapter 9 Topic 8