source:
  type: guide
  id: va-m26-7-ch09-t06
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 6 — Purchase
    of Property with Encumbrances
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 6 — Purchase
    of Property with Encumbrances.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch09-t06-full
  canonical_id: va-m26-7-ch09-t06-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 9, Topic 6 — Purchase of
    Property with Encumbrances
  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 6 — Purchase
      of Property with Encumbrances
    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: '6. Purchase of Property with Encumbrances Change Date July 30,
      2019 • This chapter has been revised in its entirety. a. Policy Pursuant to
      38 U.S.C. § 3703(d)(3)(A), a VA-guaranteed loan must be secured by a first lien
      on the realty. Lenders are responsible for properly securing the first-lien
      position of a VA-guaranteed loan. Any existing liens on the property must be
      paid off or subordinated to the VA loan. b. Eligibility A loan to purchase property
      subject to unpaid delinquent taxes, special assessments, prior mortgage indebtedness,
      or other obligations secured by effective liens that the Veteran agrees to pay
      or which constitute encumbrances on the property is not eligible for guaranty,
      if the loan amount, plus these unpaid obligations, exceeds VA’s reasonable value
      of the property. VA Pamphlet 26-7, Revised Chapter 9: Legal Instruments, Liens,
      Escrows, and Related Issues 9-12'
  judgment: false
