Content provided by the Catalog of Federal Domestic Assistance
64.119 Veterans Housing_Manufactured Home Loans
VETERANS BENEFITS ADMINISTRATION, DEPARTMENT OF VETERANS AFFAIRS
38 U.S.C. 3712.
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:
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.
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.
Pre-application Coordination: None. This program is excluded from coverage under E.O. 12372.
Formula and Matching Requirements: The guaranty is $20,000 or 40 percent, whichever is less.
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.
Account Identification: 36-4129-0-3-704.
In fiscal year 2001, no manufactured home loans were guaranteed. In fiscal years 2002 and 2003, no loans are expected.
REGULATIONS, GUIDELINES, AND LITERATURE:
38 CFR 36.4200; VA Pamphlet 26-71-1, "Questions and Answers on Manufactured Home Loans to Veterans."
Regional or Local Office: See Veterans Benefits Administration field office listed in Appendix IV of the Catalog.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: