VA Updates Form for Verifying Veterans' Loan Benefits
Published Date: 4/18/2025
Notice
Summary
The VA is updating the form lenders use to check veterans’ benefits and debts when they apply for a loan. This change helps keep things simple and fair by limiting the info collected to just what’s needed. Veterans and lenders should note that comments on this update are open until May 19, 2025, with no extra costs expected.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
VA narrows what the lender form asks
VA Form 26-8937 (Verification of VA Benefits) has been revised so the form limits the information requested to only what is needed and eliminates unlimited lender-designed forms. The form is used to check a veteran's benefits and debts when they apply for a loan.
VA systems cut need for the paper form
VA system enhancements now allow VA to provide lenders timely updates on a veteran's funding fee exemption status, the amount of a veteran's service-connected disability award, and loan-level pre-close approval needs. Because of these updates, lenders need to submit VA Form 26-8937 less often.
Form still required in limited situations
Lenders must still submit VA Form 26-8937 for VA pending pre-discharge claims or when system issues prevent automatic Certificate of Eligibility (COE) updates. In those cases, VA personnel will perform the debt check and return the completed form to the lender for use in underwriting.
Estimated paperwork burden for respondents
VA estimates the information collection will involve 3,000 respondents, with an average burden of 5 minutes per respondent, and an estimated annual burden of 250 hours in total. The frequency of response is one time per respondent.
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