VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 7 — Misuse of Veteran's Entitlement
VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 7 — Misuse of Veteran's Entitlement.
Verbatim regulatory text
Verbatim provisions from VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 7 — Misuse of Veteran's Entitlement — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
VA Lenders Handbook (VA Pamphlet 26-7), Chapter 2, Topic 7 — Misuse of Veteran's Entitlement
7. Misuse of Veteran’s Entitlement a. What Constitutes Misuse? A basic requirement of the law governing the VA home loan program is that the Veteran has a bona fide intention of occupying his or her property as a home. Home loan entitlement is not being used properly if the Veteran arranges to sell or convey the property to a third party prior to closing the loan. b. What to Do? Contact the VA RLC with jurisdiction over the property for advice regarding any case in which there may be a question regarding the legality of entitlement use.