It is not unusual for a military home buyer to be deployed before the entire VA home purchase process has been completed. However, this does not have to mean the end of the purchase and homeownership. For some, using a power of attorney to make a VA home purchase is possible as long as the rules set forth by the Veteran’s Administration are followed and requirements are met.
VA does, in fact, allow veterans to use a power of attorney, or attorney-in-fact, to execute the documents that are necessary for a VA loan. This allows active duty service persons and other veterans to obtain a loan even if they cannot be present themselves at the closing to sign the documents. According to the VA handbook, the veteran’s attorney-in-fact may use their power to apply for a Certificate of Eligibility, as well as, start the process of a VA loan on behalf of a veteran.
As with other VA guidelines, the rules for using a power of attorney for a VA loan can be lengthy and confusing to the average person reading it. Active duty military and Veterans need a POA for any VA loan if not signing both initial and final docs. A general POA can be used for the final/closing docs if the active duty/veteran signs the initial loan disclosures and documents. A specific POA must be used when the active duty/veteran does not sign the initial loan docs/disclosures and will not be signing the final loan documents. This is where the VA really wants to be sure the terms are known . The title company generally prepares the document and the VA underwriter approves it.
In some cases, the borrower may already have a POA. Since there are different types of power of attorneys, lenders usually have their legal departments approve the submitted POA that is going to be used for the VA loan transaction. Some states and/or lenders require that the power of attorney be specific to the transaction which means a regular POA will not be sufficient and accepted. The VA lender will make sure that the power of attorney is in compliance with state law to the extent that the mortgage can be legally enforced in that particular jurisdiction and clear title can be transferred if there is a foreclosure. At the time of the VA loan closing, the lender must also verify that the veteran is alive and well before finalizing the transaction.
The VA understands that active military and veterans may not be available to be at a particular place for a VA loan closing. By putting these rules and requirements in place for using a power of attorney, it is possible for a spouse or other person to make a VA home purchase on behalf of the VA borrower.
Need assistance filling out a VA loan application? Feel free at any time to contact me for more information about a VA loan and how you can achieve a 100% VA home purchase.
My loan process was very easy and quick. Not to mention a great loan rate. I couldn't be happier!
Capt Sam T. - US Army
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