The VA offers a Counseling Checklist for veterans who are planning to participate in the VA Home Loan Guarantee Program. All VA approved lenders are required to review this checklist with you so that you have a full understanding of the VA’s liability in the Home Loan Guarantee Program. You must sign this form agreeing that you fully understand your responsibilities and understand the program specifications.

The Counseling Checklist informs veterans about the following issues:

• The VA is not responsible for the condition of the home that the veteran is purchasing through the VA Home Loan Guarantee Program. The VA only guarantees a percentage of the mortgage loan, they are not responsible for the condition of the home.
• The VA is not responsible for the value of your home depreciating or appreciating. This all depends on the Real Estate market in the area you live and has nothing to do with the VA.
• Veterans who knowingly purchase a home when they are aware that they have to go into active duty or leave the area within twelve months of buying the home committed an act of bad faith. Since active duty or moving can affect a veteran’s income, the VA considers not disclosing this information an act of bad faith because the veteran will be less likely to have the ability to make their mortgage payment in these circumstances. In this case the VA may require you to pay back any money that this action cost them.
• If at any time you have to move or are let off of duty you are still responsible to make your mortgage payment.
• If at anytime you consider not making your mortgage payments, and want to just give up the house, this is not acceptable. You must contact your lender and the VA and consider all other possible options first. When circumstances like this arise it is best to keep your lender up-to-date because they may have deferment or forbearance options available so that you can avoid foreclosure.
• If you plan to allow a buyer to assume your VA Home Loan Guaranteed mortgage, you must first contact the VA for approval.
• You can make energy efficient repairs to your new home with no out of pocket expenses. The VA allows veterans to finance up to $6,000 into their VA loan for such improvements.
• The VA urges veterans to maintain their home properly in order for the home to retain it’s value and the veteran to protect their investment.

All if these items are contained on the VA Counseling Checklist in order for veterans who are participating in the VA Home Loan Guarantee Program to know what is expected of them. For more information on the VA Home Loan Guarantee Program contact your local VA Regional Service Center. To connect with VA Loan Specialist who can answer all of your questions, fill out our short prequalification form.