[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR8a.1]

[Page 517]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 8a_VETERANS MORTGAGE LIFE INSURANCE--Table of Contents
 
Sec. 8a.1  Definitions.

    (a) The term housing unit means a family dwelling or unit, together 
with the necessary land therefor, that has been or will be purchased, 
constructed, or remodeled with a grant to meet the needs of an eligible 
veteran and of his or her family, and is or will be owned and occupied 
by the eligible veteran as his or her home, or a family dwelling or 
unit, including the necessary land therefor, acquired by an eligible 
veteran to be used as his or her residence after selling or otherwise 
disposing of title to the housing unit for which his or her grant was 
made.
    (b) The term Veterans Mortgage Life Insurance (VMLI) means the 
mortgage protection life insurance authorized for veterans under 38 
U.S.C. 2106.
    (c) The term initial amount of insurance means the amount of 
insurance corresponding in amount to the unpaid principal of a mortgage 
loan outstanding on a housing unit owned or to be acquired by an 
eligible veteran on August 11, 1971, or on the date of approval of his 
or her grant made under chapter 21 of title 38 U.S.C., whichever is the 
later date.
    (d) The term mortgage loan means any loan, lien, or other 
indebtedness incurred by an eligible veteran to buy, build, remodel, or 
enlarge a housing unit, the payment of which loan, lien, or indebtedness 
is secured by a mortgage lien, or other equivalent security of record, 
on the housing unit in the usual legal form employed in the community in 
which the property is situated. The term also includes refinancing of 
such an indebtedness to avoid a default, to consolidate liens, to renew 
or extend the time for payment of the indebtedness, and in cases where 
the housing unit is being bought, built, remodeled, or enlarged by 
increasing the amount of such an indebtedness.
    (e) The term owned means the eligible veteran has or will acquire an 
interest in the housing unit which is:
    (1) A fee simple estate, or
    (2) A leasehold estate, the unexpired term of which, including 
renewals at the option of the lessee, is not less than 50 years, or
    (3) An interest in a residential unit in a cooperative or a 
condominium type development which in the judgment of the Under 
Secretary for Benefits or the Director, Loan Guaranty Service, provides 
a right of occupancy for a period of not less than 50 years: Provided, 
The title to such estate or interest is or shall be such as is 
acceptable to prudent lending institutions, informed buyers, title 
companies, and attorneys, generally, in the community.

[37 FR 282, Jan. 8, 1972, as amended at 42 FR 43835, Aug. 31, 1977; 61 
FR 29027, June 7, 1996]