To
assist veterans, servicepersons, and certain unmarried surviving
spouses of veterans in obtaining credit for the purchase of a manufactured
home on more liberal terms than are available to non-veterans.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
VA
may guarantee a lender against loss on a loan made to an eligible
applicant to buy a new or used manufactured home and/or to buy or
improve a lot for placement of a manufactured home, or to refinance
an existing VA guaranteed or insured loan previously obtained on
the same manufactured home and/or lot which the veteran or the veteran's
surviving spouse (if such surviving spouse was an obligor under
such existing loan) owns and occupies, to obtain a lower rate of
interest; or to refinance an existing manufactured home loan to
acquire a lot on which such manufactured home is or will be placed.
Restrictions on guaranteed VA manufactured home loans are: (a) the
terms of repayment must bear a proper relationship to applicant's
present and anticipated income and expenses and the applicant must
be a satisfactory credit risk; (b) the applicant must certify that
he or she intends to occupy the property as his or her home; previous
occupancy is acceptable for loans to refinance existing VA-guaranteed
loans to a lower interest rate; (c) the manufactured home must contain
living facilities for year round occupancy; (d) used manufactured
homes must meet construction and acceptability standards. There
are limitations on the term of a loan, depending on the purpose.
The maximum term is 20 years and 32 days for a single-wide manufactured
home or a combination single-wide manufactured home and lot, 23
years and 32 days for a double-wide manufactured home, 25 years
and 32 days for a double-wide unit and lot, and 15 years and 32
days for a lot only on which a manufactured home already owned by
the applicant will be placed. The loan amount may not exceed an
amount equal to 95 percent of the purchase price of the property
securing the loan.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: (a) Veterans who served on active
duty on or after September 16, 1940, and were discharged or released
under conditions other than dishonorable. Veterans who served any
time during World War II, the Korean Conflict, the Vietnam-era,
or the Persian Gulf War must have served on active duty 90 days
or more; veterans with peacetime service only must have served a
minimum of 181 days continuous active duty. All veterans separated
from enlisted service which began after September 7, 1980, or service
as an officer which began after October 16, 1981, must also have
served at least 24 months of continuous active duty or the full
period for which the person was called or ordered to active duty.
Veterans of such recent service may qualify with less service time
if they have a compensable service- connected disability or were
discharged after at least 181 days (90 days during Persian Gulf
War) under the authority of 10 U.S.C. 1171 or 1173; (b) any veteran
in the above classes with less service but discharged with a service-connected
disability; (c) individuals may also be eligible if they were released
from active duty to an involuntary reduction in force, certain medical
conditions, or in some instances, for the convenience of the Government;
(d) unmarried surviving spouses of otherwise eligible veterans who
died in service or whose deaths were attributable to service-connected
disabilities; (e) service personnel who have served at least 181
days on continuous active duty status (90 days until the ending
date for the Persian Gulf War has been set); (f) the spouse of any
member of the Armed Forces serving on active duty who is listed
as missing in action, or as a prisoner of war, and has been so listed
for a total of more than 90 days; (g) members of the Selected Reserve
who are not otherwise eligible for home loan benefits and who have
completed a total of six (6) years in the Selected Reserves, followed
by an honorable discharge, placement on the retired list, or continued
service. Individuals who completed less than 6 years may be eligible
if discharged for a service connected disability. Eligibility for
Selected Reservists expires September 30, 2009. Applicants must
have sufficient present and prospective income to meet loan repayment
terms and have a satisfactory credit record.
Beneficiary
Eligibility: Veterans, servicepersons, and
certain unmarried surviving spouses of veterans.
Credentials/Documentation:
Evidence of the veteran's service or certificate of eligibility
for loan benefits issued by the Department of Veterans Affairs.
Loan applications submitted by lenders must be accompanied by
verification of income of the applicant and a credit report.
Pre-application
Coordination: None. This program is excluded
from coverage under E.O. 12372.
Application
Procedure: Eligible veterans should: (a) obtain
a Certificate of Eligibility from the appropriate VA regional
office, (b) present it with the housing proposal to a private
lender willing to make the loan. Application for guaranty is made
by the lender to VA regional office or center having jurisdiction
over the locality in which the manufactured home is to be placed.
Award
Procedure: The processing VA office will issue
the lender evidence of its guaranty after requirements are met
and proceeds are disbursed.
Deadlines:
None.
Range
of Approval/Disapproval Time: From 1 to 5
days after receipt of loan application in VA.
Appeals:
Denial of eligibility is appealable through Board of Veterans'
Appeals. In the event of a denial, claimants are advised of appeal
rights and procedures at the time of notification.
Renewals:
None.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The guaranty is $20,000
or 40 percent, whichever is less.
Length
and Time Phasing of Assistance: Not applicable.
POST
ASSISTANCE REQUIREMENTS:
Reports:
As a condition of continued guaranty coverage, the holder of the
loan must notify the guaranteeing VA office of the borrower's default
on installment payments or other contract terms, and of any substantive
changes in the terms of the contract or the guaranty. Reporting
time limitations are specified in VA regulations.
Audits:
VA has the right to audit loan accounting records until expiration
of the guaranty.
Records:
Until VA ceases to be liable as the guarantor of a loan, the lender
or loan holder must maintain adequate records on the amount and
dates of payments received and disbursements made on guaranteed
loans.
FINANCIAL
INFORMATION:
Account
Identification: 36-4129-0-3-704.
Obligations:
(Guaranteed Loans) FY 01 $0; FY 02 est $0; and FY 03 est $0.
Range
and Average of Financial Assistance:
The guaranty is $20,000 or 40 percent, whichever is less. The
average loan amount is $29,596.
