[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: 38CFR36.4224]

[Page 562]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 36--LOAN GUARANTY--Table of Contents
 
Sec. 36.4224  Refinancing existing manufactured home loan including purchase 
of lot.

    (a) A veteran may refinance (38 U.S.C. 3712(a)(1)(G)) an existing 
purchase money lien on a manufactured home owned and occupied by the 
veteran as his or her home in conjunction with a loan to acquire a 
suitable lot on which that manufactured home is or will be located 
provided the following requirements are met.
    (1) The loan application must be submitted to the Secretary for 
prior approval;
    (2) The loan must be secured by the same manufactured home which is 
being refinanced and the real property on which the manufactured home is 
or will be located.
    (3) The amount of the loan may not exceed an amount equal to the sum 
of the balance of the loan being refinanced; the purchase price, not to 
exceed the reasonable value of the lot, as authorized in Sec. 36.4252; 
the costs of necessary site preparation of the lot as determined by the 
Secretary; a reasonable discount as authorized in Sec. 36.4204(d)(8) 
with respect to that portion of the loan used to refinance the existing 
purchase money lien on the manufactured home, and closing costs as 
authorized in Sec. 36.4232 or Sec. 36.4254, as appropriate.
    (b) If the loan being refinanced was guaranteed by the Department of 
Veterans Affairs, the portion of the loan made for the purpose of 
refinancing an existing purchase money manufactured home loan may be 
guaranteed without regard to the outstanding guaranty entitlement 
available for use by the veteran, and the veteran's guaranty entitlement 
shall not be charged as a result of any guaranty provided for the 
refinancing portion of the loan. For the purposes enumerated in 38 
U.S.C. 3702(b) the refinancing portion of the loan shall be considered 
to have been obtained with the guaranty entitlement used to obtain the 
VA-guaranteed loan being refinanced. Guaranty for the refinancing loan 
shall be computed by first applying to the loan a combined total of the 
guaranty entitlement used to obtain the VA-guaranteed loan being 
refinanced and second any additional guaranty entitlement available to 
the veteran for manufactured home purposes, up to a maximum of $20,000 
or forty (40) percent of the original principal amount of the loan, 
whichever is less.

(Authority: 38 U.S.C. 3712(a)(1)(G) and (5))

[48 FR 40229, Sept. 6, 1983, as amended at 58 FR 37860, July 14, 1993]