Posted by Elizabeth Soliday on 11/30/06 9:54pm
Msg #163119

VA Form 26-1802a Reverse Mortgage

Does anyone know what section/question 25 of this form means? Specifically, how would the borrower know or not know the HUD/FA valuation of their home. I could not explain to BO why the block was checked that they didn't know the valuation. They signed, but I still want to know...

Reply by MonicaFL on 12/1/06 9:18am
Msg #163213

Who ws this rm with? I didn't know the VA did them or was this just a "form" with VA on them? Just curious who would do this? I cannot believe anyone would grant a RM without knowing the value of the property. They always send out an appraiser.

Reply by PAW on 12/1/06 10:58am
Msg #163247

It's not just the VA

VA Form 26-1802a serves as a joint loan application for both VA and the Department of Housing and Urban Development (HUD). Lenders and veterans use the form to apply for guaranty of home loans. All HECMs must be HUD approved which means there will typically be this form, which is titled: HUD/VA Addendum to Uniform Residential Loan Application, VA Form 26-1802a, and Freddie Mac 65/Fannie Mae Form 1003, Uniform Residential Loan Application.

Reply by PAW on 12/1/06 12:10pm
Msg #163256

This section is typically not completed as per the instructions. In particular, question 25(3) says:

(3) Mark the applicable box (not applicable for Home Improvement or Refinancing Loan)
I have been informed that ($_____________ ) is :

Note that the question is not applicable for refinancing (which an RM is considered to be a refi).

On new home purchases, the borrower/buyer is informed prior to closing what the VA has appraised the home to be, within the allowable FHA/VA guidelines.