[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: 38CFR36.4252]

[Page 570-571]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 36--LOAN GUARANTY--Table of Contents
 
Sec. 36.4252  Loans for purchase or refinancing of a manufactured home.

    (a) A loan to purchase a manufactured home may include funds (or be 
augmented by a separate loan) to finance all or part of the cost of 
acquisition by the veteran of a lot on which to place the manufactured 
home and the loan shall be eligible for guaranty: Provided, That:
    (1) The veteran will acquire title to such lot that conforms to the 
requirements of Sec. 36.4253(a),
    (2) The loan is secured as required by Sec. 36.4253(d),
    (3) The lot is determined by the Secretary to be an acceptable 
manufactured homesite pursuant to Sec. 36.4208,
    (4) The portion of the loan allocated to acquisition of the lot does 
not exceed the reasonable value of the lot as determined by the 
Secretary, and
    (5) The loan conforms otherwise to the requirements of the 
Sec. 36.4200 series.
    (b) Notwithstanding that the veteran-borrower's obligation for 
acquisition of the lot be evidenced and secured separately from the 
obligation for purchase of the manufactured home, the obligations 
together (including, where appropriate, that for site preparation) shall 
constitute one loan for the purposes of the Sec. 36.4200 series, 
including computation of the Secretary's guaranty liability.
    (c) The cost of lot acquisition which will not be paid from the 
proceeds of the loan must be paid by the veteran in cash from the 
veteran's own resources.
    (d) For the purpose of this section acquisition of a manufactured 
home lot includes:
    (1) The refinancing of the balance owed by the veteran as purchaser 
under an existing real estate installment contract, and
    (2) The refinancing of existing mortgage loans or other liens which 
are secured of record on a manufactured home lot owned by the veteran.
    (e) A loan to acquire a lot on which to site a manufactured home may 
include funds to refinance an existing loan made for the purchase of and 
secured by a manufactured home on which lot the manufactured home is 
located or will be placed, provided that:
    (1) The veteran will acquire or retain title to such manufactured 
home and lot that conforms to the requirements of Secs. 36.4234 and 
36.4253,
    (2) The loan is secured as required by Sec. 36.4253(g),
    (3) The lot is determined by the Secretary to be an acceptable 
manufactured homesite pursuant to Sec. 36.4208,

[[Page 571]]

    (4) The portion of the loan allocated to the acquisition and 
preparation of the lot does not exceed the reasonable value of the 
developed lot as determined by the Secretary,
    (5) The cost of necessary site preparation is determined by the 
Secretary to be reasonable.
    (6) The portion of the loan allocated to the refinancing of the 
manufactured home does not exceed an amount equal to the sum of the 
balance of the loan being refinanced; 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 loan, and closing costs as authorized in Sec. 36.4232 or 
Sec. 36.4254, as appropriate,
    (7) The loan conforms otherwise to the requirements of the 
Sec. 36.4200 series,
    (8) The veteran-borrower's obligation for acquisition of the lot and 
for refinancing the existing loan on the manufactured home (including 
site preparation, where appropriate), shall constitute one loan for the 
purposes of the Sec. 36.4200 series, including computation of the 
Secretary's guaranty liability.

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

[36 FR 3368, Feb. 23, 1971, as amended at 40 FR 13215, Mar. 25, 1975; 44 
FR 22725, Apr. 17, 1979; 48 FR 40230, Sept. 6, 1983]