[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: 38CFR36.4223]

[Page 561-562]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 36--LOAN GUARANTY--Table of Contents
 
Sec. 36.4223  Interest rate reduction refinancing loan.

    (a) A veteran may refinance [38 U.S.C. 3712(a)(1)(F)] an existing 
Department of Veterans Affairs guaranteed loan to reduce the interest 
rate payable on the Department of Veterans Affairs loan provided the 
following requirements are met:
    (1) The loan application must be submitted to the Secretary for 
prior approval unless the veteran is not charged a discount, in which 
case the loan application may be processed on the automatic basis;
    (2) The loan must be secured by the same real property and/or 
personal property as the loan being refinanced and the veteran must own 
the manufactured home and/or manufactured home lot securing the loan; 
and
    (i) Presently occupy or have previously occupied the manufactured 
home, a manufactured home on the lot securing the loan, or the 
manufactured home and the lot securing the loan as his or her home and 
must certify in such form as the Secretary shall prescribe that the 
veteran presently or has previously so occupied the manufactured home or 
a manufactured home on the lot; or
    (ii) When a veteran is on Active Duty status as a member of the 
Armed Forces and is unable to occupy the manufactured home or a 
manufactured home on the lot securing the loan as a home because of such 
status, the veteran's spouse must occupy or must have previously 
occupied the manufactured home or a manufactured home on the lot as the 
spouse's home and must certify such occupancy in such form as the 
Secretary shall prescribe.
    (3) The amount of the refinancing loan may not exceed an amount 
equal to the sum of the balance of the loan being refinanced and such 
closing costs as authorized in Sec. 36.4232 or Sec. 36.4254, as 
appropriate, and a discount not to exceed 2 percent of the loan amount;


(Authority: 38 U.S.C. 3703, 3712)

    (4) The dollar amount of the guaranty of the 38 U.S.C. 3712(a)(1)(F) 
loan may not exceed the greater of the original guaranty amount of the 
loan being refinanced, or 25 percent of the loan; and


(Authority: 38 U.S.C. 3703, 3712)

    (5) The term of the refinancing loan 38 U.S.C. 3712(a)(1)(F) may not 
exceed the original term of the loan being refinanced.
    (b) Notwithstanding any other regulatory provision, the interest 
rate reduction refinancing loan may be guaranteed without regard to the 
amount of guaranty entitlement for manufactured home purposes available 
for use by the veteran, and the amount of the veteran's remaining 
guaranty entitlement for manufactured home purposes shall not be charged 
for an interest rate reduction refinancing loan. The interest rate 
reduction refinancing

[[Page 562]]

loan will be guaranteed with the entitlement used by the veteran to 
obtain the loan being refinanced. The veteran's loan guaranty 
entitlement used originally for a purpose as enumerated in 38 U.S.C. 
3712(a)(1)(A) through (E) or (G) and subsequently transferred for use on 
an interest rate reduction refinancing loan (38 U.S.C. 3712(a)(1)(F)) 
shall be eligible for restoration when the interest rate reduction 
refinancing loan or subsequent interest rate reduction refinancing loan 
on the same property meets the requirements of Sec. 36.4203(a).
    (c) Title to the security which is refinanced for the purpose of an 
interest rate reduction must be in conformity with Sec. 36.4234, and/or 
Sec. 36.4253, as appropriate.


(Authority: 38 U.S.C. 3712(a)(1)(F) and (4))

[46 FR 43671, Aug. 31, 1981, as amended at 48 FR 40229, Sept. 6, 1983; 
58 FR 37860, July 14, 1993; 60 FR 38258, July 26, 1995; 61 FR 7415, Feb. 
28, 1996]