The Veterans Administration (VA) announced that, effective immediately, lenders “may accept a Veteran’s assertion of spousal status when a Veteran is applying for home loan benefits,” in Circular Letter 26-15-29, dated November 5, 2015.
In light of the recent Supreme Court decision in Obergefell v. Hodges, the VA will now recognize a marriage between two people of the same-sex when their marriage was lawfully licensed and performed Out-of-State.
In short, the VA may now recognize all same-sex marriages without regard to a Veteran’s state of residence. This policy should assist lenders by eliminating any uncertainty when taking VA loan applications involving same-sex couples.
When processing and underwriting a VA loan transaction, lenders are advised that the VA will now accept an assertion on VA Form 26-1802a, HUD/VA Addendum to Uniform Residential Loan Application, to establish spousal status for the purpose of determining home loan benefits.
It should be noted that this is all the documentation deemed necessary by the VA to establish an applicant’s assertion that he or she is married. Additional information, documentation or analysis is not required and lenders are instructed to process loan applications involving same-sex marriage in the same manner as loan applications based on opposite-sex marriage.
In light of these instructions, I would caution any lender that would want to build in some overlays requiring additional research and/or documentation before accepting the applicant’s certification that he/she is indeed married.
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For more information about VA benefits for spouses – access the VA’s web page on Marriage.