The Department of Veterans Affairs (VA) recently issued Circular 26-16-01 (January 14, 2016) which provides clarification for questions pertaining to the VA’s policy on the use of VA-guaranteed home loans. The Circular states that when a veteran borrower and a non-borrower spouse are party to a loan transaction, the veteran borrower is required to sign all documents and the non-borrower spouse is required to sign either the mortgage note or the mortgage deed. For joint loans, all borrowers are required sign all documents (VA Lenders Handbook Pamphlet 26-7, Chapter 7). The VA stated that they are aware that lenders make loans to veterans who want to use their VA benefits to purchase a home and include their spouse in ownership, without including their spouse on the mortgage note. When the spouse is included on the deed, but not on the note, the spouse’s ownership in the property could delay or prevent foreclosure actions which may increase the cost of foreclosure claims to the government and veteran. The purpose of this circular is for clarification and it does not reflect a change in policy.