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Topic 6: Assumptions: Appeals and Prior Approva
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Change Date: March 2, 2026
· Topic 6, section b, table 8, item 10 has been updated to remove the credit report invoice as the credit report invoice is now included in Topic 6, section c, table 9, item 3.
· Topic 6, section b, table 8 has been updated to include Verification of Rent or Mortgage as item 11. Subsequent items have been renumbered. This would have previously been included in other necessary documents but has been given its own item. · Topic 6, section b, table 8 has been updated to include VA Form 26-10291, Assumption Entitlement Acknowledgement, announced in Circular 26-24-9, as item 15. All subsequent items have been renumbered.
· Topic 6, section b, table 8, item 22 Other Necessary Documents, 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.
· Topic 6, section c, table 9, item 3 has been updated to include the lender’s provision of invoices for itemized fees under Circular 26-24-19.
· Topic 6, section c, table 9, item 6 “Other necessary documents” was added.
· The “Alive and Well” statement, included in tables 8 and 9 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 without automatic authority must submit assumption applications to VA for prior approval within 35 calendar days of receipt of a complete assumption package. A stacking order for submission is provided in section b.
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Additionally, if holder assumption an disapproves agent, servicing authorized its or , application, the seller or buyer may appeal the decision to VA within 30 calendar days of the holder or servicer’s decision. If an appeal is requested, the holder or servicer should upload the documents listed on the stacking order in section b within 7 calendar days of receipt of a request from the seller, buyer, or VA.
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If VA approves the prior approval or appealed assumption, the holder, or its authorized servicing agent must: report the closing by uploading the documentation listed in section c.
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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 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 closing 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 c.
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In all cases, the file should be uploaded as a PDF into VALERI under Documents, as Document Type: ‘Release of Liability’.
Additional information is available in Chapter 5 of VA Lenders Handbook M26-7.
38 C.F.R. § 36.4303(l)(1)(ii)(D)
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38 U.S.C. § 3714(a)(4)
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b. Assumption Stacking Order: Appeals and Prior Approval Requests
This stacking order is used for appeals and for requesting prior approval for an assumption.
Table 8: Assumption Appeals and Prior Approval Requests
Order Document
1 Cover letter with holder and servicer names and VA identification (ID) numbers, a specific point of contact, email address, and phone number 2 Evidence the loan is current or will be brought current through the assumption
3 Original note and all riders
4 Purchase/Assumption Contract or Divorce Decree
5 VA Form 26-8937, Verification of VA Benefits (if applicable)
6 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. 7 All Loan Estimates
8 VA Form 26-8497, Request for Verification of Employment, and/or all other verifications of income such as pay stubs and tax returns. Include explanations of employment gaps greater than 30 days. Any income documentation obtained during processing should be provided in the loan file.
9 CAIVRS: assumer and all co-assumers
10 All credit reports obtained in connection with the loan and any related documentation, such as explanations for adverse credit if required.
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11 Verification of Rent or Mortgage . The borrower’s most recent 24-month rental history and any outstanding, assumed, or recently retired mortgages must be verified and rated.
12 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. 13 For Automated Underwriting cases: Feedback Certificate and underwriter’s certification
14 VA Form 26-6393, Loan Analysis, including any necessary explanations regarding the underwriter’s determination of creditworthiness. 15 VA Form 26-10291, Assumption Entitlement Acknowledgement
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16 VA Form 26-0592, Counseling Checklist for Military Homebuyers , if the assumer is on active duty.
17 VA Form 26-6381 (Sellers Document)
18 VA Form 26-6382 (Buyers Document)
19 [If Substitution of Entitlement] VA Form 26-8106
20 [If Substitution of Entitlement] VA Form 26-1880 or Certificates of Eligibility for
selling and purchasing Veterans
21 [Appeals only] Notice of Adverse Action for disapproval, including evidence that the assumer and seller were provided with the required disapproval notifications
22 Other necessary documents (for example – but not limited to, 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)
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)
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38 C.F.R. § 36.4340(g)(10)
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38 C.F.R. 36.4340(f)(2)(iii)
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Assumption Stacking Order: Appeals and Prior Approval Closing Package
This stacking order is used to report the closing of an assumption after an appeal or prior approval. Table 9: Assumption Appeals and Prior Approval Closing Package
Order Document
1 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)
2 VA Funding Fee Receipt (screenshot from FFPS is acceptable)
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3 Closing Disclosure Statement or ALTA statement if an investment transaction,
and invoices for itemized fees under Circular 26-24-19.
4 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
5 Assignment of Escrow (if applicable)
6 Other necessary documents (for example – Power of Attorney and Alive and not
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Missing in Action statement if used)
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12 C.F.R. § 1026.38
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Chapter 9 Topic 8