Chris is an award-winning former journalist with 15 years of experience in the mortgage industry. A national expert in VA lending and author of “The Book on VA Loans,” Chris has been featured in The New York Times, the Wall Street Journal and more.
Published on February 14, 2024 Veterans: Check your $0 down eligibility today! Expert Reviewed At a GlancePower of Attorney helps ensure that deployed service members and other Veterans who can’t be present to sign documents can still use their VA home loan benefit.
Power of Attorney (POA) is a familiar concept for many VA buyers.
POA is a legal instrument allowing service members to designate a person who can enter into contracts and execute other civil, financial and legal obligations on their behalf - often because of a deployment.
You can use power of attorney to obtain a VA loan. In other words, the Veteran or service member does not have to be present during the buying process as long as POA requirements are met.
Lenders need to verify the service member or Veteran is alive and, if on active duty, not missing in action. This is commonly known as a VA alive and well statement.
This process is necessary to obtain a VA loan through power of attorney.
The VA alive and well statement is typically a verbal communication with the borrower on the day of closing, but some lenders may also require a formal letter from a supervisor.
Beyond the alive and well statement, there are two types of power of attorney commonly used by the VA and approved lenders when Veterans want to use VA benefits without being physically present.
Your unique circumstances will likely dictate whether you need a General POA or a Specific POA.
General Power of Attorney is, well, general in nature. It gives your assigned agent the power to handle many broad needs on your behalf, from filing taxes and making banking transactions to signing contracts.
There are two scenarios that allow VA buyers to use a General POA:
It doesn’t matter if they can’t sign other documents as the loan process moves forward. If they can sign these two early documents, you can use General POA.
In either case, some lenders may accept electronic signatures.
You’ll need to use a Specific POA if the buyer is unable to meet the requirements for a General POA.
Specific POA is also known as limited Power of Attorney. It’s limited because the agent is only allowed to execute on a very specific issue, such as a VA home loan for one particular property address.
At Veterans United, to move forward with a VA purchase, your Specific POA must contain the following information:
Other lenders may have their own guidelines regarding VA loans and Specific POA.
Military members purchasing while overseas or otherwise relying on Power of Attorney is more common than many people realize. The VA ensures that deployed service members and other Veterans who can't be present to sign documents still have access to this cherished and increasingly valuable benefit.
You can discuss your unique situation with a VA home loan expert at 855-870-8845.
See What You Qualify ForAnswer a few questions below to speak with a specialist about what your military service has earned you.
Chris Birk is the author of “The Book on VA Loans: An Essential Guide to Maximizing Your Home Loan Benefits.” An award-winning former journalist, Chris writes about mortgages and homebuying for a host of sites and publications. His analysis and articles have appeared at The New York Times, the Wall Street Journal, USA Today, ABC News, CBS News, Military.com and more. More than 300,000 people follow VA Loans Insider, his interactive VA loan community on Facebook.
About Our Editorial Process
Veterans United is recognized as the leading VA lender in the nation, unmatched in our specialization and expertise in VA loans. Our strict adherence to accuracy and the highest editorial standards guarantees our information is based on thoroughly vetted, unbiased research. Committed to excellence, we offer guidance to our nation's Veterans, ensuring their homebuying experience is informed, seamless and secured with integrity.
The VA funding fee is a governmental fee required for many VA borrowers. However, some Veterans are exempt, and the fee varies by VA loan usage and other factors. Here we explore the ins and outs of the VA funding fee, current charts, who's exempt and a handful of unique scenarios.
Can Your Mortgage Be Denied After Preapproval? Updated on April 15, 2024It is possible for you to get denied for a home loan after being preapproved. Find out why this may happen and what you can do to prevent it.
