What is a waiver and how do you get one?

Veterans who owe money to the VA from either a loan guarantee that was forced into repayment, a default on a home loan or a foreclosure may be eligible for a debt wavier. The VA recognizes that borrowers may incur financial difficulties because of circumstances beyond their control. Veterans can obtain a waiver to forgive debt in some cases.

The VA may grant waivers to:

  • Veterans who have incurred financial difficulties because of extenuating circumstances, such as recently disabled veterans. In some cases, waivers are granted to veterans who transferred their mortgage and their VA Home Program Guarantee entitlement when they sold their home, and the buyer stopped making payments to the VA without the seller's knowledge.
  • A spouse or ex-spouse of a deceased veteran with a limited income who cannot afford to make mortgage payments due to the veteran's death.
  • The beneficiary or representative of the veteran's estate, or of the estate of the person who owes the VA money. A waiver may be granted if the person who owes the VA money dies.
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To apply for a waiver you must:

  • Explain in writing why you think you should be granted a waiver. In your letter, you must state why you think the debt is not your responsibility, or why you are unable to pay the debt.
  • You may request a hearing in which you would appear in person to plead your case for a waiver. If you choose this option, you must state in your original letter of request for a waiver that you would like an oral hearing. The VA will contact you regarding the details of the hearing.
  • Complete a Financial Status Report to support your claim that you are unable to pay the debt.
  • Submit the waiver request and all additional information within one year of the date in which the VA first notified you of the home guarantee debt.

If you have waiver related problems:

If for any reason you are not granted a waiver, the VA may negotiate a compromise to reduce your debt. The VA will not grant a waiver due to fraud, or financial mistakes or misrepresentations on the part of you or your lender. Mortgage Loan Place can help you get in contact with a VA loan specialist. For those veterans who truly had no control over the circumstances which led to their financial troubles, a waiver is a chance to alleviate their financial burden. The VA offers waivers to deserving veterans, so that they can get back on their feet without a large debt after a costly, major event in their lives. A VA waiver is submitted to the Department of Veteran Affairs.

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