VA Form 26-8106: GI Loan Assumption & Substitution of Entitlement – VA Form 26-8106 is an official document used in the VA home loan program. It allows an eligible veteran buyer (the purchaser/assumer) to substitute their VA loan entitlement for that of the veteran seller during a loan assumption. This process, known as Substitution of Entitlement (SOE), helps restore the seller’s VA benefits so they can use them for a future home purchase.
The form is one page long and must be submitted to the VA along with related documents like VA Form 26-6382 (Request for Release of Liability) and VA Form 26-6807 (Financial Statement).
Download the official VA Form 26-8106 here: VA Form 26-8106 PDF (Revised January 1991).
Why VA Loan Assumption with Substitution of Entitlement Matters for Veterans?
VA loans are assumable, meaning a qualified buyer can take over the existing mortgage terms, including the interest rate and remaining balance. This can be advantageous in high-interest-rate environments.
For the seller, a successful SOE fully restores their entitlement after the assumption closes, freeing it for another VA loan. Without it, the seller’s entitlement remains tied to the property until the loan is paid off.
For the buyer, assuming a VA loan with SOE lets them use their own entitlement on an existing favorable loan while occupying the home as their primary residence.
Key Requirements for Using VA Form 26-8106
- The buyer must be an eligible veteran with a valid Certificate of Eligibility (COE) and sufficient unused entitlement to cover the seller’s used amount.
- The buyer must intend to occupy the property as their primary home.
- Both parties work with the loan servicer and VA Regional Loan Center.
- Lender approval is required, including credit and income checks for the assumer.
Note: Non-veterans or veterans without enough entitlement can assume the loan, but without SOE, the seller’s entitlement stays encumbered.
How to Fill Out VA Form 26-8106 Step by Step?
- Enter VA Loan Number and Property Address at the top.
- Review Part I: Veteran’s Notice of Liability — Understand ongoing responsibility for payments even after selling.
- Part II: Veteran’s Certifications — Certify understanding of liability, intent to occupy as primary residence, and fair housing compliance.
- Part III: Authorization to Charge Entitlement — Authorize VA to charge your guaranty entitlement for the substitution.
- Sign and date as the purchaser.
Submit with supporting forms. Consult your lender or VA for guidance. The form is straightforward but requires accurate information.
Step-by-Step VA Loan Assumption Process Involving Form 26-8106
- Seller finds a qualified buyer interested in assuming the loan.
- Buyer applies with the servicer for assumption approval (credit, income, etc.).
- For SOE: Buyer completes VA Form 26-8106, provides COE, and meets occupancy requirements.
- Servicer processes and submits to VA, including release of liability for the seller.
- Upon approval and closing, entitlement substitution occurs, restoring the seller’s benefits.
The process typically requires coordination between buyer, seller, servicer, and VA.
Benefits of VA Loan Assumption with Substitution of Entitlement
- For Sellers: Restore full VA entitlement quickly to buy another home with 0% down.
- For Buyers: Potentially secure a lower interest rate and avoid some closing costs associated with new loans.
- Market Advantage: More attractive listings in competitive or high-rate markets.
Common Questions About VA Form 26-8106 and SOE
Who should sign VA Form 26-8106?
The veteran purchaser/assumer signs it.
Is the form still current?
Yes, the January 1991 version remains the official form available on VA.gov.
Can I restore entitlement without SOE?
Yes, but only after the assumed loan is fully paid off, which can take years.
Where to submit?
Through the loan servicer to the appropriate VA Regional Loan Center.
For personalized help, contact the VA at 800-698-2411 or visit your Regional Loan Center.
Additional Resources
- Official VA Form Page: VA Form 26-8106 on VA.gov
- VA Loan Assumption Information: Search VA.gov for current guidelines.
- Request Certificate of Eligibility: Use VA Form 26-1880.
This article provides general information based on official VA sources and trusted veteran resources as of 2026. Always verify with the VA or a qualified lender for your specific situation, as rules can be updated. Veterans should consult professionals before proceeding with any loan assumption.