For Your Benefit
For and about Hawaii's military

By Gregg K. Kakesako

Sunday, November 25, 2001

See also: In The Military

Borrower can be released
from VA loan

Question: I purchased a home with a Veterans Affairs loan and now wish to sell it. Can I be released from the liability to the VA?

Answer: When a veteran sells a home financed through a VA guaranty to a purchaser who assumes the loan, the veteran may request release from liability to the federal government provided the loan is current, the purchaser has been obligated by contract to purchase the property and assume all of the veteran's liabilities, and the VA is satisfied that the purchaser is a good risk. A release from liability does not mean that a veteran's guaranty entitlement is restored. If the purchaser is another veteran and agrees to substitute entitlement for that of the veteran-seller, entitlement may be restored to the veteran-seller. A VA loan for which a commitment was made on or after March 1, 1988, is not assumable without approval of the VA or its authorized agent. The person who assumes a VA loan for which a commitment was made on or after March 1, 1988, must pay a fee to VA equal to one-half of 1 percent of the balance of the loan being assumed. Veterans whose loans were closed after Dec. 31, 1989, have no liability to the government following a foreclosure, except in cases involving fraud, misrepresentation or bad faith.

Q: I am currently taking VA medication for a skin condition that is hard on my clothes. Someone told me the VA provides a clothing allowance. Can you tell me more about it?

A: Any veteran who is entitled to receive compensation for a service-connected disability for which he or she uses prosthetic or orthopedic appliances may receive an annual clothing allowance. The allowance also is available to any veteran whose service-connected skin condition requires prescribed medication that irreparably damages the veteran's outer garments. To apply for this benefit, contact the VA benefits section at 433-1000.

If you have questions about your benefits as a veteran,
call Fred Ballard at the Veterans Affairs at 433-0049
or the Star-Bulletin at 529-4747.

Gregg K. Kakesako can be reached by phone at 294-4075
or by e-mail at

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