VA Tip of the Day: Can a Veteran Use a Power of Attorney (POA) to Close on a Home?
Life in the military doesn’t always line up neatly with life’s biggest milestones—like buying a home. Whether you’re about to deploy, stationed overseas, or simply unavailable for the closing date, the good news is you can still close your VA home loan using a Specific Power of Attorney (POA).
The VA understands that service members and Veterans may not always be able to attend closing in person. That’s why the VA Lender’s Handbook allows for Power of Attorney arrangements—so your homeownership journey doesn’t have to pause when duty calls.
What Is a Power of Attorney (POA)?
A Power of Attorney is a legal document that gives another person (called the “attorney-in-fact”) the authority to act on your behalf.
In the case of a VA home loan, this means the designated individual can sign loan documents, closing disclosures, and final paperwork for the property.
The VA permits both general and specific POAs, but most lenders prefer—or even require—a specific POA that directly references the home purchase.
What Must a VA POA Include?
For a Power of Attorney to be valid for a VA loan, it must include these key elements:
✅ Authority to purchase, encumber, or mortgage real property
This ensures the attorney-in-fact has legal power to act in real estate matters on behalf of the borrower.
✅ Identification of the specific property or clear intent to buy using VA financing
If the property hasn’t been identified yet, the POA must at least state that the Veteran intends to use a VA-guaranteed loan to purchase a home.
✅ Acknowledgment of the loan terms by the borrower
Even though the attorney-in-fact signs at closing, the Veteran must personally acknowledge the loan amount, type, and interest rate. This acknowledgment can be done through a letter, email, or recorded conversation with the lender.
✅ Verification of intent to proceed
The lender must verify that the borrower still wishes to go forward with the transaction—typically through a signed statement, email confirmation, or phone call documentation.
Specific vs. General Power of Attorney
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General POA: Grants broad authority for a range of financial or legal actions.
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Specific POA: Limits authority to a particular transaction or property.
Example:
If you’re deployed and buying a home in Texas, a specific POA might state:
“I authorize Jane Smith to purchase and execute loan documents for the property located at 123 Main Street, Fort Worth, TX 76110, using my VA home loan benefit.”
While the VA accepts both, most lenders require a specific POA for real estate closings because it provides clarity and prevents misuse.
Example Scenario:
Sergeant Davis is an active-duty Army service member stationed at Fort Campbell. He receives orders for deployment just as his home purchase in Clarksville, TN, enters final underwriting.
Because he won’t be available for closing, his spouse will need to sign on his behalf.
Here’s how it works:
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Sergeant Davis signs a Specific Power of Attorney before deployment authorizing his wife, Emily, to act on his behalf to “purchase, encumber, and mortgage” the specific property address.
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The lender reviews and approves the POA before closing to ensure it meets VA requirements.
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Sergeant Davis confirms his intent to proceed with the loan by emailing the lender his acknowledgment of the interest rate and loan terms.
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Emily signs closing documents using the approved Specific POA, and the title company includes it in the final closing package.
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The loan funds and records as normal, allowing Sergeant Davis to become a homeowner—even while serving overseas.
Key Takeaways
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Yes — Veterans and Active Duty personnel can close using a Power of Attorney.
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The POA must clearly authorize the purchase or mortgage of real estate.
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The Veteran must acknowledge loan terms and intent to proceed.
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Lenders typically prefer a specific POA referencing the property.
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Always have your lender and title company review the POA before closing to avoid last-minute delays.
Final Thought
A properly executed Power of Attorney gives our nation’s heroes the flexibility they deserve — ensuring military service never becomes a barrier to homeownership. Whether you’re serving abroad or simply can’t attend closing in person, the VA has your back.
About Between Two Doors
Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask "right brain" questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.
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