source:
  type: guide
  id: va-m26-7-ch09-t07
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 7 — Liens Covering
    Community-Type Services and Facilities
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 7 — Liens
    Covering Community-Type Services and Facilities.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch09-t07-full
  canonical_id: va-m26-7-ch09-t07-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 7 — Liens Covering
    Community-Type Services and Facilities
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 7 — Liens
      Covering Community-Type Services and Facilities
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 23782f6842a5daf5
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:b7c7fcb001b1097e51e4479c70f74c0d981cc1a7a38109e8cd455e205071d9e8
    paragraph_quote: '7. Liens Covering Community-Type Services and Facilities Change
      Date July 30, 2019 • This chapter has been revised in its entirety. a. Policy
      Loans for the purchase and construction of homes will be first liens, subject
      only to taxes, special assessments, and ground rents. VA will not approve superior
      liens in favor of private entities unless they: • are legally or practically
      necessary, and • result in no prejudice to the Veterans or the Government. b.
      Requirements The lender must obtain VA prior approval of liens held by private
      parties which are superior to VA home mortgage liens. Liens held by mandatory
      membership home associations in planned unit developments are not addressed
      in this topic. The lender must demonstrate that: • it is not legal or practical
      to subordinate the superior lien to the VA mortgage, • there is a viable rationale
      for not subordinating the superior lien, • the superior lien will not prejudice
      Veterans or the Government, and • if periodic charges or assessments are involved,
      the amounts are reasonable and limits on the amounts have been established.
      c. VA Approval Always obtain VA approval before the lien is recorded. Builders
      and developers should be aware that if they plan to market properties through
      VA financing, covenants creating superior liens should not be recorded without
      VA approval. Continued on next page VA Pamphlet 26-7, Revised Chapter 9: Legal
      Instruments, Liens, Escrows, and Related Issues 9-13 7. Liens Covering Community-Type
      Services and Facilities, continued d. Examples VA may find the following types
      of superior liens acceptable (38 C.F.R. 36.4356): • Liens for taxes, assessments,
      and ground rents. • Liens by private entities to secure assessments or charges
      for municipal- type services and facilities which: o are clearly governmental
      in nature, and o a municipality could support out of public tax revenue if it
      provided the service, but the municipality does not provide them. • Liens to
      implement or augment a service or facility if the government’s provision of
      such service or facility is inadequate. • Liens for services or facilities in
      locations where the services or facilities are adequately supplied by local
      government generally will not be approved by VA. • Liens created by recorded
      covenants in favor of private entities to secure the homeowner’s share of the
      costs of the management, operation, maintenance, services, or programs for the
      benefit of a development. • Liens (on existing properties) previously retained
      by trustees, improvement associations or other nongovernmental entities for
      community-type services and facilities in a given area or subdivision, such
      as maintenance of streets, parkways, playgrounds, water systems, sewage systems,
      police and fire protection, or street lighting. VA Pamphlet 26-7, Revised Chapter
      9: Legal Instruments, Liens, Escrows, and Related Issues 9-14'
  judgment: false
