[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: 38CFR36.4206]

[Page 551-552]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 36--LOAN GUARANTY--Table of Contents
 
Sec. 36.4206  Underwriting standards, occupancy, and non-discrimination 
requirements.

    (a) Except for refinancing loans pursuant to 38 U.S.C. 
3712(a)(1)(F), no loan shall be guaranteed unless the terms of repayment 
bear a proper relationship to the veteran's present and anticipated 
income and expenses, and the veteran is a satisfactory credit risk, as 
determined by use of the standards in Sec. 36.4337 of this part.


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

    (b) Use of the standards in Sec. 36.4337 of this part for 
underwriting manufactured home loans will be waived only in 
extraordinary circumstances.


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

    (c) The lender responsibilities contained in Sec. 36.4337 of this 
part and the certification required and penalties to be assessed under 
Sec. 36.4337A of this part against lenders making false certifications 
also apply to lenders originating VA guaranteed manufactured home loans 
under the authority of 38 U.S.C. 3712.


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

    (d) No loan shall be guaranteed pursuant to 38 U.S.C. 3712(a)(1) 
unless:
    (1) The veteran certifies, in such form as the Secretary shall 
prescribe, that he or she will personally occupy the property as his or 
her home or, if the veteran is on active duty status as a member of the 
Armed Forces and is for that reason unable to occupy the property, the 
veteran's spouse must certify that he or she will personally occupy the 
property as his or her home. For the purposes of this section, the words 
personally occupy the property as his or her home mean that the veteran 
as of the date of his or her certification actually lives in the 
property personally as his or her residence or actually intends upon 
completion of the loan and acquisition of the manufactured home to move 
into the home personally within a reasonable time and to utilize the 
home as his or her residence.
    (2) The veteran certifies, in such form as the Secretary shall 
prescribe that:
    (i) Neither the veteran, nor anyone authorized to act for the 
veteran, will refuse to sell or rent, after the making of a bona fide 
offer, or refuse to negotiate for the sale or rental of, or otherwise 
make unavailable or deny the dwelling or property covered by this loan 
to any person because of race, color, religion, sex, handicap, familial 
status, or national origin;

[[Page 552]]

    (ii) The veteran recognizes that any restrictive covenant on the 
property relating to race, color, religion, sex, handicap, familial 
status, or national origin is illegal and void and any such covenant is 
specifically disclaimed; and
    (iii) The veteran understands that civil action for preventive 
relief may be brought by the Attorney General of the United States in 
any appropriate U.S. district court against any person responsible for a 
violation of the applicable law.

[46 FR 43670, Aug. 31, 1981, as amended at 56 FR 9855, Mar. 8, 1991; 58 
FR 37859, July 14, 1993]