source:
  type: regulation
  id: va-38usc-3714
  authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714 — Assumptions; release from liability
  description: 'VA Home Loan Guaranty (38 U.S.C. ch. 37), §3714 Assumptions; release from liability. Captured section-complete
    from Cornell LII (verbatim).

    '
obligations:
- id: va-38usc-3714-a
  canonical_id: va-38usc-3714-a
  section: 38 U.S.C. §3714(a)
  description: 'Assumptions; release from liability — (a): (a) (1) Except as provided in subsection (f) of this
    section, if a veteran or any other person disposes of residential property securing a loan guaranteed, insured,
    or made under this chapter and the veteran or other person notifies the holder of the loan in writing before
    the property is disposed o…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (a) (1) Except as provided in subsection (f) of this section, if a veteran or any other person
      disposes of residential property securing a loan guaranteed, insured, or made under this chapter and the veteran
      or other person notifies the holder of the loan in writing before the property is disposed of, the veteran
      or other person, as the case may be, shall be relieved of all further liability to the Secretary with respect
      to the loan (including liability for any loss resulting from any default of the purchaser or any subsequent
      owner of the property) and the application for assumption shall be approved if the holder determines that—
      (A) the loan is current; and (B) the purchaser of the property from such veteran or other person—
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (a) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-i
  canonical_id: va-38usc-3714-i
  section: 38 U.S.C. §3714(i)
  description: 'Assumptions; release from liability — (i): (i) is obligated by contract to purchase such property
    and to assume full liability for the repayment of the balance of the loan remaining unpaid and has assumed by
    contract all of the obligations of the veteran under the terms of the instruments creating and securing the
    loan; and (ii) qualifies fr…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (i) is obligated by contract to purchase such property and to assume full liability for the
      repayment of the balance of the loan remaining unpaid and has assumed by contract all of the obligations of
      the veteran under the terms of the instruments creating and securing the loan; and (ii) qualifies from a credit
      standpoint, to the same extent as if the purchaser were a veteran eligible under section 3710 of this title
      , for a guaranteed or insured or direct loan in an amount equal to the unpaid balance of the obligation for
      which the purchaser is to assume liability. (2) For the purposes of paragraph (1), paragraph (3), and paragraph
      (4)(C)(ii) of this subsection, the Secretary shall be considered to be the holder of the loan if the actual
      holder is not an approved lender described in section 3702. (3) If the holder of the loan determines that
      the loan is not current or that the purchaser of the property does not meet the requirements of paragraph
      (1)(B) of this subsection, the holder shall— (A) notify the transferor and the Secretary of such determination;
      and (B) notify the transferor that the transferor may appeal the determination to the Secretary. (4) (A) Upon
      the appeal of the transferor after a determination described in paragraph (3) is made, the Secretary shall,
      in a timely manner, review and make a determination (or a redetermination in any case in which the Secretary
      made the determination described in such paragraph) with respect to whether the loan is current and whether
      the purchaser of the property meets the requirements of paragraph (1)(B) of this subsection. The Secretary
      shall transmit, in writing, a notice of the nature of such determination to the transferor and the holder
      and shall inform them of the action that shall or may be taken under subparagraph (B) of this paragraph as
      a result of the determination of the Secretary. (B)
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (i) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-i
  canonical_id: va-38usc-3714-i
  section: 38 U.S.C. §3714(i)
  description: 'Assumptions; release from liability — (i): (i) If the Secretary determines under subparagraph (A)
    of this paragraph that the loan is current and that the purchaser meets the requirements of paragraph (1)(B)
    of this subsection, the holder shall approve the assumption of the loan, and the transferor shall be relieved
    of all liability to the Se…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (i) If the Secretary determines under subparagraph (A) of this paragraph that the loan is current
      and that the purchaser meets the requirements of paragraph (1)(B) of this subsection, the holder shall approve
      the assumption of the loan, and the transferor shall be relieved of all liability to the Secretary with respect
      to such loan. (ii) If the Secretary determines under subparagraph (A) of this paragraph that the purchaser
      does not meet the requirements of paragraph (1)(B) of this subsection, the Secretary may direct the holder
      to approve the assumption of the loan if— (I) the Secretary determines that the transferor of the property
      is unable to make payments on the loan and has made reasonable efforts to find a buyer who meets the requirements
      of paragraph (1)(B) of this subsection and that, as a result, the proposed transfer is in the best interests
      of the Department and the transferor; (II) the transferor has requested, within 15 days after receiving the
      notice referred to in subparagraph (A) of this paragraph, that the Secretary approve the assumption; and (III)
      the transferor will, upon assumption of the loan by the purchaser, be secondarily liable on the loan. (C)
      If—
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (i) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-i
  canonical_id: va-38usc-3714-i
  section: 38 U.S.C. §3714(i)
  description: 'Assumptions; release from liability — (i): (i) the loan is not approved for assumption under subparagraph
    (B) of this paragraph or paragraph (1) of this subsection; or (ii) no appeal is made by the transferor under
    subparagraph (A) of this paragraph within 30 days after the holder informs the transferor of its determination
    under paragraph (…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (i) the loan is not approved for assumption under subparagraph (B) of this paragraph or paragraph
      (1) of this subsection; or (ii) no appeal is made by the transferor under subparagraph (A) of this paragraph
      within 30 days after the holder informs the transferor of its determination under paragraph (3) of this subsection,
      the holder may demand immediate, full payment of the principal, and all interest earned thereon, of such loan
      if the transferor disposes of the property.
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (i) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-b
  canonical_id: va-38usc-3714-b
  section: 38 U.S.C. §3714(b)
  description: 'Assumptions; release from liability — (b): (b) If a person disposes of residential property described
    in subsection (a)(1) of this section and the person fails to notify the holder of the loan before the property
    is disposed of, the holder, upon learning of such action by the person, may demand immediate and full payment
    of the principal, in…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (b) If a person disposes of residential property described in subsection (a)(1) of this section
      and the person fails to notify the holder of the loan before the property is disposed of, the holder, upon
      learning of such action by the person, may demand immediate and full payment of the principal, interest, and
      all other amounts owing under the terms of the loan.
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (b) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-c
  canonical_id: va-38usc-3714-c
  section: 38 U.S.C. §3714(c)
  description: 'Assumptions; release from liability — (c): (c) (1) In any case in which the holder of a loan described
    in subsection (a)(1) of this section has knowledge of a person’s disposing of residential property securing
    the loan, the holder shall notify the Secretary of such action. (2) If the holder fails to notify the Secretary
    in such a case, the …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (c) (1) In any case in which the holder of a loan described in subsection (a)(1) of this section
      has knowledge of a person’s disposing of residential property securing the loan, the holder shall notify the
      Secretary of such action. (2) If the holder fails to notify the Secretary in such a case, the holder shall
      be liable to the Secretary for any damage sustained by the Secretary as a result of the holder’s failure,
      as determined at the time the Secretary is required to make payments in accordance with any insurance or guaranty
      provided by the Secretary with respect to the loan concerned.
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (c) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-d
  canonical_id: va-38usc-3714-d
  section: 38 U.S.C. §3714(d)
  description: 'Assumptions; release from liability — (d): (d) With respect to a loan guaranteed, insured, or made
    under this chapter, the Secretary shall provide, by regulation, that at least one instrument evidencing either
    the loan or the mortgage or deed of trust therefor, shall conspicuously contain, in such form as the Secretary
    shall specify, a notic…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: '(d) With respect to a loan guaranteed, insured, or made under this chapter, the Secretary
      shall provide, by regulation, that at least one instrument evidencing either the loan or the mortgage or deed
      of trust therefor, shall conspicuously contain, in such form as the Secretary shall specify, a notice in substantially
      the following form: “This loan is not assumable without the approval of the Department of Veterans Affairs
      or its authorized agent”.'
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (d) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-e
  canonical_id: va-38usc-3714-e
  section: 38 U.S.C. §3714(e)
  description: 'Assumptions; release from liability — (e): (e) The Secretary shall establish in regulations a reasonable
    amount as the maximum amount that a lender may charge for processing an application for a creditworthiness determination
    and assumption of a loan pursuant to this section. Such regulations shall establish requirements for the timely
    proce…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (e) The Secretary shall establish in regulations a reasonable amount as the maximum amount
      that a lender may charge for processing an application for a creditworthiness determination and assumption
      of a loan pursuant to this section. Such regulations shall establish requirements for the timely processing
      of applications for acceptance of assumptions.
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (e) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: va-38usc-3714-f
  canonical_id: va-38usc-3714-f
  section: 38 U.S.C. §3714(f)
  description: 'Assumptions; release from liability — (f): (f) (1) This section shall apply— (A) in the case of
    loans other than loans to finance the purchase of real property described in section 3733(a)(1) of this title
    , only to loans for which commitments are made on or after March 1, 1988 ; and (B) in the case of loans to finance
    the purchase of such p…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: VA Home Loan Guaranty (38 U.S.C. ch. 37) § 3714
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/38/3714
    snapshot_id: 3b3a020cb0882d66
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:b79f82e5d5efa93b27face7dcf0df2e590a07d7d683e2668c6d525ccabb7f170
    paragraph_quote: (f) (1) This section shall apply— (A) in the case of loans other than loans to finance the
      purchase of real property described in section 3733(a)(1) of this title , only to loans for which commitments
      are made on or after March 1, 1988 ; and (B) in the case of loans to finance the purchase of such property,
      only to loans which are closed after January 1, 1989 . (2) This section shall not apply to a loan which the
      Secretary has sold without recourse. (Added Pub. L. 100–198, § 10(a)(1) , Dec. 21, 1987 , 101 Stat. 1321 ,
      § 1817A; renumbered § 1814, Pub. L. 100–322, title IV, § 415(b)(2)(B) , May 20, 1988 , 102 Stat. 551 ; amended
      Pub. L. 100–689, title III, § 302 , Nov. 18, 1988 , 102 Stat. 4176 ; Pub. L. 101–237, title III, § 313(b)(1)
      , Dec. 18, 1989 , 103 Stat. 2077 ; renumbered § 3714 and amended Pub. L. 102–83 , §§ 4(a)(2)(B)(iv), (3),
      (4), 5(a), (c)(1), Aug. 6, 1991 , 105 Stat. 403 , 404, 406; Pub. L. 105–368, title X, § 1005(b)(10) , Nov.
      11, 1998 , 112 Stat. 3365 ; Pub. L. 107–103, title IV, § 403 , Dec. 27, 2001 , 115 Stat. 993 .)
    drafter_attestation: Verbatim slice of 38 U.S.C. §3714 subsection (f) from Cornell LII snapshot 3b3a020cb0882d66;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
