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38 U.S.C. § 3704 — Restrictions on loans
Federal law — U.S. Code and appendices · legal_authorities
**(a)** No loan for the purchase or construction of residential property shall be financed through the assistance of this chapter unless the property meets or exceeds minimum requirements for planning, construction, and general acceptability prescribed by the Secretary; however, this subsection shall not apply to a loan for the purchase of residential property on which construction is fully completed more than one year before such loan is made.
**(b)** Subject to notice and opportunity for a hearing, the Secretary may refuse to appraise any dwelling or housing project owned, sponsored, or to be constructed by any person identified with housing previously sold to veterans under this chapter as to which substantial deficiencies have been discovered, or as to which there has been a failure or indicated inability to discharge contractual liabilities to veterans, or as to which it is ascertained that the type of contract of sale or the methods or practices pursued in relation to the marketing of such properties were unfair or unduly prejudicial to veteran purchasers. The Secretary may also refuse to appraise any dwelling or housing project owned, sponsored, or to be constructed by any person refused the benefits of participation under the National Housing Act pursuant to a determination of the Secretary of Housing and Urban Development.
**(c)**
(1) Except as provided in paragraph (2) of this subsection, no loan for the purchase or construction of residential property shall be financed through the assistance of this chapter unless the veteran applicant, at the time that the veteran applies for the loan, and also at the time that the loan is closed, certifies in such form as the Secretary may require, that the veteran intends to occupy the property as the veteran’s home. Ex
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Source location: Title 38, Chapter 37, § 3704; chapter-037-housing-and-small-business-loans.md
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**(a)** No loan for the purchase or construction of residential property shall be financed through the assistance of this chapter unless the property meets or exceeds minimum requirements for planning, construction, and general acceptability prescribed by the Secretary; however, this subsection shall not apply to a loan for the purchase of residential property on which construction is fully completed more than one year before such loan is made.
**(b)** Subject to notice and opportunity for a hearing, the Secretary may refuse to appraise any dwelling or housing project owned, sponsored, or to be constructed by any person identified with housing previously sold to veterans under this chapter as to which substantial deficiencies have been discovered, or as to which there has been a failure or indicated inability to discharge contractual liabilities to veterans, or as to which it is ascertained that the type of contract of sale or the methods or practices pursued in relation to the marketing of such properties were unfair or unduly prejudicial to veteran purchasers. The Secretary may also refuse to appraise any dwelling or housing project owned, sponsored, or to be constructed by any person refused the benefits of participation under the National Housing Act pursuant to a determination of the Secretary of Housing and Urban Development.
**(c)**
(1) Except as provided in paragraph (2) of this subsection, no loan for the purchase or construction of residential property shall be financed through the assistance of this chapter unless the veteran applicant, at the time that the veteran applies for the loan, and also at the time that the loan is closed, certifies in such form as the Secretary may require, that the veteran intends to occupy the property as the veteran’s home. Except as provided in paragraph (2) of this subsection, no loan for the repair, alteration, or improvement of residential property shall be financed through the assistance of the provisions of this chapter unless the veteran applicant, at the time that the veteran applies to the lender for the loan, and also at the time that the loan is closed, certifies, in such form as may be required by the Secretary, that the veteran occupies the property as the veteran’s home. Notwithstanding the foregoing provisions of this subsection, in the case of a loan automatically guaranteed under this chapter, the veteran shall be required to make the certification only at the time the loan is closed. For the purposes of this chapter the requirement that the veteran recipient of a guaranteed or direct home loan must occupy or intend to occupy the property as the veteran’s home means that the veteran as of the date of the veteran’s certification actually lives in the property personally as the veteran’s residence or actually intends upon completion of the loan and acquisition of the dwelling unit to move into the property personally within a reasonable time and to utilize such property as the veteran’s residence. Notwithstanding the foregoing requirements of this subsection, the provisions for certification by the veteran at the time the veteran applies for the loan and at the time the loan is closed shall be considered to be satisfied if the Secretary finds that (1) in the case of a loan for repair, alteration, or improvement the veteran in fact did occupy the property at such times, or (2) in the case of a loan for construction or purchase the veteran intended to occupy the property as the veteran’s home at such times and the veteran did in fact so occupy it when, or within a reasonable time after, the loan was closed.
(2) In any case in which a veteran is in active-duty status as a member of the Armed Forces and is unable to occupy a property because of such status, the occupancy requirements of this chapter shall be considered to be satisfied if—
(A) the spouse of the veteran occupies or intends to occupy the property as a home and the spouse makes the certification required by paragraph (1) of this subsection; or
(B) a dependent child of the veteran occupies or will occupy the property as a home and the veteran’s attorney-in-fact or legal guardian of the dependent child makes the certification required by paragraph (1) of this subsection.
**(d)** Subject to notice and opportunity for a hearing, whenever the Secretary finds with respect to guaranteed or insured loans that any lender or holder has failed to maintain adequate loan accounting records, or to demonstrate proper ability to service loans adequately or to exercise proper credit judgment or has willfully or negligently engaged in practices otherwise detrimental to the interest of veterans or of the Government, the Secretary may refuse either temporarily or permanently to guarantee or insure any loans made by such lender or holder and may bar such lender or holder from acquiring loans guaranteed or insured under this chapter; however, the Secretary shall not refuse to pay a guaranty or insurance claim on loans theretofore entered into in good faith between a veteran and such lender. The Secretary may also refuse either temporarily or permanently to guarantee or insure any loans made by a lender or holder refused the benefits of participation under the National Housing Act pursuant to a determination of the Secretary of Housing and Urban Development.
**(e)** Any housing loan which is financed through the assistance of this chapter and to which section 3714 of this chapter applies shall include a provision that the loan is immediately due and payable upon transfer of the property securing such loan to any transferee unless the acceptability of the assumption of the loan is established pursuant to such section 3714.
**(f)** A loan for the purchase or construction of new residential property, the construction of which began after the energy efficiency standards under section 109 of the Cranston-Gonzalez National Affordable Housing Act ([42 U.S.C. 12709](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12709&num=0&edition=prelim)), as amended by section 101(c) of the Energy Policy Act of 1992, take effect, may not be financed through the assistance of this chapter unless the new residential property is constructed in compliance with the standards established under such section 109, as in effect on the date of such construction.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** For the purpose of this chapter, the term “housing loan” means a loan for any of the purposes specified by sections 3710(a) and 3712(a)(1) of this title.
**(b)** For the purposes of housing loans under this chapter—
(1) The term “World War II” (A) means the period beginning on September 16, 1940, and ending on July 25, 1947, and (B) includes, in the case of any veteran who enlisted or reenlisted in a Regular component of the Armed Forces after October 6, 1945, and before October 7, 1946, the period of the first such enlistment or reenlistment.
(2) The term “veteran” includes the surviving spouse of any veteran (including a person who died in the active military, naval, air, or space service) who died from a service-connected disability, but only if such surviving spouse is not eligible for benefits under this chapter on the basis of the spouse’s own active duty. The active duty or service in the Selected Reserve of the deceased spouse shall be deemed to have been active duty or service in the Selected Reserve by such surviving spouse for the purposes of this chapter.
(3) The term “veteran” also includes, for purposes of home loans, the spouse of any member of the Armed Forces serving on active duty who is listed, pursuant to [section 556 of title 37](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title37-section556&num=0&edition=prelim), United States Code, and regulations issued thereunder, by the Secretary concerned in one or more of the following categories and has been so listed for a total of more than ninety days: (A) missing in action, (B) captured in line of duty by a hostile force, or (C) forcibly detained or interned in line of duty by a foreign government or power. The active duty of the member shall be deemed to have been active dut
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3701
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Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1) The veterans described in paragraph (2) of this subsection are eligible for the housing loan benefits of this chapter. In the case of any veteran who served on active duty during two or more of the periods specified in paragraph (2) for which eligibility for the housing loan benefits under this chapter may be granted, entitlement derived from service during the most recent such period (A) shall cancel any unused entitlement derived from service during any earlier such period, and (B) shall be reduced by the amount by which entitlement from service during any earlier such period has been used to obtain a direct, guaranteed, or insured housing loan—
(i) on real property which the veteran owns at the time of application; or
(ii) as to which the Secretary has incurred actual liability or loss, unless in the event of loss or the incurrence and payment of such liability by the Secretary the resulting indebtedness of the veteran to the United States has been paid in full.
(2) The veterans referred to in the first sentence of paragraph (1) of this subsection are the following:
(A) Each veteran who served on active duty at any time during World War II, the Korean conflict, or the Vietnam era and whose total service was for 90 days or more.
(B) Each veteran who after September 15, 1940, was discharged or released from a period of active duty for a service-connected disability.
(C) Each veteran, other than a veteran described in clause (A) or (B) of this paragraph, who—
(i) served after July 25, 1947, for a period of more than 180 days and was discharged or released therefrom under conditions other than dishonorable; or
(ii) has served more than 180 days in active duty status and continues on active duty without a break therein.
(D) Each v
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3702
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment**
(1) **In general** — The Secretary of Housing and Urban Development and the Secretary of Agriculture shall, not later than September 30, 2006, jointly establish, by rule, energy efficiency standards for—
(A) new construction of public and assisted housing and single family and multifamily residential housing (other than manufactured homes) subject to mortgages insured under the National Housing Act [[12 U.S.C. 1701](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1701&num=0&edition=prelim) et seq.];
(B) new construction of single family housing (other than manufactured homes) subject to mortgages insured, guaranteed, or made by the Secretary of Agriculture under title V of the Housing Act of 1949 [[42 U.S.C. 1471](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1471&num=0&edition=prelim) et seq.]; and
(C) rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under [section 1437v of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437v&num=0&edition=prelim).
(2) **Contents** — Such standards shall meet or exceed the requirements of the 2006 International Energy Conservation Code (hereafter in this section referred to as “the 2006 IECC”), or, in the case of multifamily high rises, the requirements of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers Standard 90.1–2004 (hereafter in this section referred to as “ASHRAE Standard 90.1–2004”), and shall be cost-effective with respect to construction and operating costs on a life-cycle cost basis. In developing such standards, the Secretaries shall consult with an advisory task force composed of homebuilders, national, S
Source: Supplied U.S. Code snapshot — release unconfirmed · 42 U.S.C. § 12709
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** In accordance with regulations which the Secretary shall prescribe, the Secretary shall provide a child of a Vietnam veteran who is suffering from spina bifida with health care under this section.
**(b)** The Secretary may provide health care under this section directly or by contract or other arrangement with any health care provider.
**(c)** For the purposes of this section—
(1) The term “health care”—
(A) means home care, hospital care, nursing home care, outpatient care, preventive care, habilitative and rehabilitative care, case management, and respite care; and
(B) includes—
(i) the training of appropriate members of a child’s family or household in the care of the child; and
(ii) the provision of such pharmaceuticals, supplies, equipment, devices, appliances, assistive technology, direct transportation costs to and from approved sources of health care, and other materials as the Secretary determines necessary.
(2) The term “health care provider” includes specialized spina bifida clinics, health care plans, insurers, organizations, institutions, and any other entity or individual furnishing health care services that the Secretary determines are authorized under this section.
(3) The term “home care” means outpatient care, habilitative and rehabilitative care, preventive health services, and health-related services furnished to an individual in the individual’s home or other place of residence.
(4) The term “hospital care” means care and treatment for a disability furnished to an individual who has been admitted to a hospital as a patient.
(5) The term “nursing home care” means care and treatment for a disability furnished to an individual who has been admitted to a nursing home as a resident.
(6) The term “outpatient care” means car
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 1804
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Secretary of Housing and Urban Development shall collect and maintain information regarding early defaults on mortgages as provided under this section. The Secretary shall make such information available for public inspection upon request. Information shall be collected quarterly with respect to each applicable collection period (as such term is defined in subsection (c)) and shall be available for inspection not more than 30 days after the conclusion of the calendar quarter relating to each such period. Information shall first be made available under this section for the applicable collection period relating to the first calendar quarter ending more than 180 days after November 28, 1990.
**(b) Contents**
(1) **Mortgage lender analysis** — Information collected under this section shall include, for each lender originating mortgages during the applicable collection period that are insured pursuant to [section 1709 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1709&num=0&edition=prelim) and secured by property in a designated census tract, the following information with respect to such mortgages:
(A) The name of the lender and the number of each designated census tract in which the lender originated 1 or more such mortgages during the applicable collection period.
(B) The total number of such mortgages originated by such lender during the applicable collection period in each designated census tract and the number of mortgages originated each year in each designated census tract.
(C) The total number of defaults and foreclosures on such mortgages during the applicable collection period in each designated census tract and the number of defaults and foreclosures in each designated census tract in
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1701
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Pursuant to such regulations as the Secretary may prescribe, the Secretary may provide vocational training under this section to a child of a Vietnam veteran who is suffering from spina bifida if the Secretary determines that the achievement of a vocational goal by such child is reasonably feasible.
**(b)** Any program of vocational training for a child under this section shall—
(1) be designed in consultation with the child in order to meet the child’s individual needs;
(2) be set forth in an individualized written plan of vocational rehabilitation; and
(3) be designed and developed before the date specified in subsection (d)(3) so as to permit the beginning of the program as of the date specified in that subsection.
**(c)**
(1) A vocational training program for a child under this section—
(A) shall consist of such vocationally oriented services and assistance, including such placement and post-placement services and personal and work adjustment training, as the Secretary determines are necessary to enable the child to prepare for and participate in vocational training or employment; and
(B) may include a program of education at an institution of higher learning if the Secretary determines that the program of education is predominantly vocational in content.
(2) A vocational training program under this section may not include the provision of any loan or subsistence allowance or any automobile adaptive equipment.
**(d)**
(1) Except as provided in paragraph (2) and subject to subsection (e)(2), a vocational training program under this section may not exceed 24 months.
(2) The Secretary may grant an extension of a vocational training program for a child under this section for up to 24 additional months if the Secretary determines that the extensio
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 1805
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Except as provided in [section 3704(c)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3704/c/2&num=0&edition=prelim), any loan to a veteran, if made pursuant to the provisions of this chapter, is automatically guaranteed if such loan is for one or more of the following purposes:
(1) To purchase or construct a dwelling to be owned and occupied by the veteran as a home.
(2) To purchase a farm on which there is a farm residence to be owned and occupied by the veteran as the veteran’s home.
(3) To construct on land owned by the veteran a farm residence to be occupied by the veteran as the veteran’s home.
(4) To repair, alter, or improve a farm residence or other dwelling owned by the veteran and occupied by the veteran as the veteran’s home.
(5) To refinance existing mortgage loans or other liens which are secured of record on a dwelling or farm residence owned and occupied by the veteran as the veteran’s home.
(6) To purchase a one-family residential unit in a condominium housing development or project, if such development or project is approved by the Secretary under criteria which the Secretary shall prescribe in regulations.
(7) To improve a dwelling or farm residence owned by the veteran and occupied by the veteran as the veteran’s home through energy efficiency improvements, as provided in subsection (d).
(8) To refinance in accordance with subsection (e) of this section an existing loan guaranteed, insured, or made under this chapter.
(9)
(A)
(i) To purchase a manufactured home to be permanently affixed to a lot that is owned by the veteran.
(ii) To purchase a manufactured home and a lot to which the home will be permanently affixed.
(B)
(i) To refinance, in accordance with the terms
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3710
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The Congress finds that housing credit for purposes specified in section 3710 or 3712 of this title is not and has not been generally available to veterans living in rural areas, or in small cities and towns not near large metropolitan areas. It is therefore the purpose of this section to provide housing credit for veterans living in such rural areas and such small cities and towns.
**(b)** Whenever the Secretary finds that private capital is not generally available in any rural area or small city or town for the financing of loans guaranteed for purposes specified in section 3710 or 3712 of this title, the Secretary shall designate such rural area or small city or town as a “housing credit shortage area”. The Secretary shall, with respect to any such area, make, or enter into commitments to make, to any veteran eligible under this title, a loan for any or all of the purposes described in section 3710(a) or 3712 of this title (other than the refinancing of a loan under section 3710(a)(8) or 3712(a)(1)(F)).
**(c)** No loan may be made under this section to a veteran unless the veteran shows to the satisfaction of the Secretary that—
(1) the veteran is unable to obtain from a private lender in such housing credit shortage area, at an interest rate not in excess of the rate authorized for guaranteed home loans or manufactured home loans, as appropriate, a loan for such purpose for which the veteran is qualified under section 3710 or 3712 of this title, as appropriate; and
(2) the veteran is unable to obtain a loan for such purpose from the Secretary of Agriculture under title III of the Consolidated Farm and Rural Development Act ([7 U.S.C. 1921](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1921&num=0&edition=prelim) et seq.) or ti
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3711
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Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1) Notwithstanding any other provision of this chapter, any loan to a veteran eligible for the housing loan benefits of this chapter, if made pursuant to the provisions of this section, may be guaranteed if such loan is for one of the following purposes:
(A) To purchase a lot on which to place a manufactured home already owned by the veteran.
(B) To purchase a single-wide manufactured home.
(C) To purchase a single-wide manufactured home and a lot on which to place such home.
(D) To purchase a double-wide manufactured home.
(E) To purchase a double-wide manufactured home and a lot on which to place such home.
(F) To refinance in accordance with paragraph (4) of this subsection an existing loan guaranteed, insured, or made under this section.
(G) To refinance in accordance with paragraph (5) of this subsection an existing loan that was made for the purchase of, and that is secured by, a manufactured home and to purchase a lot on which such manufactured home is or will be placed.
(2) A loan for any of the purposes described in paragraph (1) of this subsection (other than the refinancing under clause (F) of such paragraph of an existing loan) may include an amount determined by the Secretary to be appropriate to cover the cost of necessary preparation of a lot already owned or to be acquired by the veteran, including the costs of installing utility connections and sanitary facilities, of paving, and of constructing a suitable pad for the manufactured home.
(3) Any loan made for the purposes described in clause (C), (E), or (G) of paragraph (1) of this subsection shall be considered as part of one loan. The transaction may be evidenced by a single loan instrument or by separate loan instruments for (A) that portion of the loan which finances
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3712
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Federal law — U.S. Code and appendices · legal_authorities
Page 889
TITLE 38—VETERANS’ BENEFITS
§ 3704
to any loan for which a guaranty commitment is made
on or before December 31, 1987.’’
EFFECTIVE DATE OF 1987 AMENDMENT
Pub. L. 100–198, § 3(d), Dec. 21, 1987, 101 Stat. 1316, pro-
vided that: ‘‘The amendments made by this section
[amending this section and sections 1810, 1811, and 1819
[now 3710, 3711, and 3712] of this title] shall apply to
loans which are closed on or after February 1, 1988, ex-
cept that they shall not apply to any loan for which a
guaranty commitment is made on or before December
31, 1987.’’
EFFECTIVE DATE OF 1981 AMENDMENTS
Amendment by Pub. L. 97–72 effective at end of 180-
day period beginning on Nov. 3, 1981, see section 305 of
Pub. L. 97–72, set out as an Effective Date note under
section 3741 of this title.
Amendment by Pub. L. 97–66 effective Oct. 17, 1981,
see section 701(b)(1) of Pub. L. 97–66, set out as a note
under section 1114 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–385 effective Oct. 7, 1980,
see section 601(d) of Pub. L. 96–385, set out as a note
under section 1114 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95–476 effective Oct. 1, 1978,
see section 108(a) of Pub. L. 95–476, set out as a note
under section 3702 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94–324 effective June 30, 1976,
see section 9(a) of Pub. L. 94–324, set out as a note under
section 3701 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93–569 effective Dec. 31, 1974,
see section 10 of Pub. L. 93–569, set out as a note under
section 3702 of this title.
EFFECTIVE DATE OF 1967 AMENDMENT
Amendment by Pub. L. 90–77 effective first day of
first calendar month which begins more than ten days
aft
Source: Supplied 2024 U.S. Code historical extraction · 38 U.S.C. § 3704
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