Is VA Form 26-8937 Still Required?
There is a specific procedure used by the lender to verify the veteran's exemption from paying the VA loan funding fee. In September 2011 this procedure has been altered and simplified for many veterans by the VA's decision to include the information regarding VA loan funding fee exempt status on the Certificate of Eligibility. The funding fee status is shown on the COE, so generally, lenders will no longer require the VA 26-8937.
VA Form 26-8937 Instructions
Most items on the form are self-explanatory. However, VA Form 26-8937, question 7 needs further interpretation. It concerns VA benefit-related indebtedness. The veterans must certify that they do or do not have it, to the best of their knowledge, and that they authorize VA to furnish the information listed in the paragraphs above. The applicant must record benefit-related indebtedness if:
- An overpayment of VA education, compensation, or pension benefits has occurred;
- Payment of a claim on a prior guaranteed home loan has resulted in VA loss;
- A VA education loan or direct VA home loan defaulted;
- Repayment plans for any of VA debts are delayed.
How to Fill out VA Form 26-8937?
Half of the VA 26-8937 Form (Items 1 through 10) must be completed by the veteran/applicant, while the other half is for VA use only. The veteran/applicant fills out the following items:
- The name and the address of the lender (the complete mailing address including ZIP Code);
- The full name of the veteran;
- The current address of the veteran;
- The date of birth;
- The VA claim folder number (if known);
- The social security number;
- The service number (if it is different from the social security number);
- The signature of the veteran;
- The actual date signed.
The veterans have to:
- Certify that they do or do not have a VA benefit-related indebtedness to their knowledge;
- Authorize VA to furnish the information in the paragraphs above;
- Certify that they have or have not filed a claim for VA disability benefits prior to discharge from active duty service.
The completed form must be sent to the VA Regional Loan Center where it will be processed and returned to the lender.
The VA must complete the following items:
- The VA benefit-related indebtedness - the type of debt(s) and the amount of debt(s);
- The term of the repayment plan (if any);
- The signature of an authorized agent;
- The actual date signed.
The VA must answer several questions:
- If the veteran has or does not have a VA benefit-related indebtedness;
- If the veteran is exempt from funding fee due to receipt of service-connected disability compensation;
- If the veteran is exempt from funding fee due to entitlement to VA compensation benefits upon discharge from service;
- If the veteran is not exempt from funding fee due to receipt of a non-service-connected pension;
- If the veteran has been rated incompetent by the VA;
- If the identification of the veteran with the information given is impossible.