VA Form 26-1849
Substitution of Mortgagor / Release of Liability
Who fills it
veteran
Journey phase
Specialty Benefits
Estimated time
20-30 minutes.
When to file
When a buyer is assuming your VA loan and you want to be released from financial responsibility.
You are selling your home but the buyer is assuming your VA loan rather than getting a new loan. You want to be released from liability on the VA loan.
Gather before you start
—VA loan information (lender, loan number, property address)
—Buyer (assumer) information for creditworthiness review
—Lender authorization to approve the assumption
Attach with the form
—Assumer's credit application
—Lender's approval of assumption
Section I - Original Borrower (Veteran)
Blocks 1-5Veteran name, SSN, address, VA loan numberPII
Your information as the original veteran borrower on the VA loan.
Example
(legal name, SSN, VA loan number)
Common mistakes
- Not knowing that a buyer assuming your VA loan does NOT automatically restore your entitlement - pay off the loan or get a qualified buyer to restore entitlement.
- Selling without requesting release of liability - if the buyer defaults later, you remain on the hook financially.
Section II - Assumer (Buyer) Information
Blocks 6-10Buyer name, address, proposed terms of assumptionPII
The buyer who will assume the VA loan. VA must approve the assumer's creditworthiness before releasing the original veteran from liability. VA or the lender reviews the assumer's financial qualifications.
Example
(buyer legal name, address, intended term of loan assumption)
Common mistakes
- Assuming VA automatically approves all buyers - VA reviews and may reject a buyer whose creditworthiness does not meet minimum standards.
- Completing the sale before VA releases liability - release must be granted BEFORE the transaction closes.
Authority
38 USC 3702 - Veteran eligibility for VA-guaranteed home loans.
Section III - Certification
Blocks 11-12Veteran signature and datePII
Sign and date. The lender also signs approval of the assumption.
Example
(signature/date)
Common mistakes
- Not understanding that entitlement is NOT restored when a non-veteran assumes the loan - restoration requires full payoff.
Statutory & regulatory authority
38 USC 3702 - Veteran eligibility for VA-guaranteed home loans.