[Code of Federal Regulations]
[Title 38, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR36.4203]

[Page 545-546]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 36--LOAN GUARANTY--Table of Contents
 
Sec. 36.4203  Eligibility of the veteran for the manufactured home loan 
benefit under 38 U.S.C. 3712.

    (a) To be eligible for the manufactured home loan benefit a veteran 
must have loan guaranty entitlement for manufactured home purposes 
available for use. Notwithstanding the provisions of Sec. 36.4205(e), 
the Secretary may exclude the amount of guaranty entitlement used for 
any guaranteed manufactured home loan provided:
    (1) The property which served as security for the loan has been 
disposed of by the veteran, or has been destroyed by fire or other 
natural hazard; and
    (2)(i) The loan has been repaid in full or the Secretary has been 
released from liability as to the loan, or if the Secretary has suffered 
a loss on said loan, such loss has been paid in full; or
    (ii) A veteran-transferee has agreed to assume the outstanding 
balance on the loan and consented to the use of his or her entitlement 
to the extent the entitlement of the veteran-transferor had been used 
originally, and the veteran-transferee otherwise meets the requirements 
of 38 U.S.C. chapter 37.
    (3) In a case in which the veteran still owns a property purchased 
with a VA-guaranteed loan, the Secretary may, one time only, restore 
entitlement if:
    (i) The loan has been repaid in full, or, if the Secretary has 
suffered a loss on the loan, the loss has been paid in full; or
    (ii) The Secretary has been released from liability as to the loan 
and, if the Secretary has suffered a loss on the loan, the loss has been 
paid in full.
    (4) The Secretary may, in any case involving circumstances deemed 
appropriate, waive either or both of the requirements set forth in 
paragraphs (a)(1) and (a)(2)(i) of this section.


(Authority: 38 U.S.C. 3702, 3712)


The Secretary may, in any case involving circumstances deemed 
appropriate, waive either or both of the requirements set forth in 
paragraph (a)(1) or (2) of this section.
    (b) A veteran may use his or her remaining home loan guaranty 
entitlement for any purpose authorized by 38 U.S.C. 3710, 3711, or 3712 
except that a veteran who has purchased a manufactured home unit may not 
purchase a second manufactured home unit until the unit which secured 
the first loan has been disposed of by the veteran or has been destroyed 
by fire or other natural hazard.

[[Page 546]]

    (c) The available entitlement of a veteran will be determined by the 
Secretary as of the date of receipt of an application for guaranty of a 
manufactured home loan or loan report. Such date of receipt shall be the 
date the application or loan report is date stamped into the Department 
of Veterans Affairs. Eligibility derived from the most recent period of 
service (1) shall cancel any unused entitlement derived from any earlier 
period of service, and (2) shall be reduced by the amount by which 
entitlement from service during any earlier period has been used to 
obtain a direct, guaranteed, or insured loan:
    (i) On 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.

Provided, That if the Secretary issues or has issued a certificate of 
commitment covering the loan described in the application for guaranty 
or in the loan report, the amount and percentage of guaranty 
contemplated by the certificate of commitment shall not be subject to 
reduction if the loan has been or is closed on a date which is not later 
than the expiration date of the certificate of commitment, 
notwithstanding that the Secretary in the meantime and prior to the 
issuance of the evidence of guaranty shall have incurred actual 
liability or loss on a direct, guaranteed, or insured loan previously 
obtained by the borrower. For the purposes of this paragraph, the 
Secretary will be deemed to have incurred actual loss on a guaranteed or 
insured loan if the Secretary has paid a guaranty or insurance claim 
thereon and the veteran's resultant indebtedness to the Government has 
not been paid in full, and to have incurred actual liability on a 
guaranteed or insured loan if the Secretary is in receipt of a claim on 
the guaranty or insurance or is in receipt of a notice of default. In 
the case of a direct loan, the Secretary will be deemed to have incurred 
an actual loss if the loan is in default.


(Authority: 38 U.S.C. 3712(b)(1) and (2) and (c)(4))

[44 FR 22723, Apr. 17, 1979, as amended at 48 FR 40227, Sept. 6, 1983; 
49 FR 28243, July 11, 1984; 60 FR 38257, July 26, 1995]