
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC3710]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
 
                          SUBCHAPTER II--LOANS
 
Sec. 3710. Purchase or construction of homes

    (a) Except as provided in section 3704(c)(2) of this title, any loan 
to a veteran, if made pursuant to the provisions of this chapter, is 
automatically guaranteed if such loan is for one or more of the 
following purposes:
        (1) To purchase or construct a dwelling to be owned and occupied 
    by the veteran as a home.
        (2) To purchase a farm on which there is a farm residence to be 
    owned and occupied by the veteran as the veteran's home.
        (3) To construct on land owned by the veteran a farm residence 
    to be occupied by the veteran as the veteran's home.
        (4) To repair, alter, or improve a farm residence or other 
    dwelling owned by the veteran and occupied by the veteran as the 
    veteran's home.
        (5) To refinance existing mortgage loans or other liens which 
    are secured of record on a dwelling or farm residence owned and 
    occupied by the veteran as the veteran's home.
        (6) To purchase a one-family residential unit in a condominium 
    housing development or project, if such development or project is 
    approved by the Secretary under criteria which the Secretary shall 
    prescribe in regulations.
        (7) To improve a dwelling or farm residence owned by the veteran 
    and occupied by the veteran as the veteran's home through energy 
    efficiency improvements, as provided in subsection (d).
        (8) To refinance in accordance with subsection (e) of this 
    section an existing loan guaranteed, insured, or made under this 
    chapter.
        (9)(A)(i) To purchase a manufactured home to be permanently 
    affixed to a lot that is owned by the veteran.
        (ii) To purchase a manufactured home and a lot to which the home 
    will be permanently affixed.
        (B)(i) To refinance, in accordance with the terms and conditions 
    applicable under the provisions of subsection (e) of this section 
    (other than paragraph (1)(E) of such subsection) to the guaranty of 
    a loan for the purpose specified in clause (8) of this subsection, 
    an existing loan guaranteed, insured, or made under this chapter 
    that is secured by a manufactured home permanently affixed to a lot 
    that is owned by the veteran.
        (ii) To refinance, in accordance with section 3712(a)(5) of this 
    title, an existing loan that was made for the purchase of, and that 
    is secured by, a manufactured home that is permanently affixed to a 
    lot and to purchase the lot to which the manufactured home is 
    affixed.
        (10) To purchase a dwelling to be owned and occupied by the 
    veteran as a home and make energy efficiency improvements, as 
    provided in subsection (d).
        (11) To refinance in accordance with subsection (e) an existing 
    loan guaranteed, insured, or made under this chapter, and to improve 
    the dwelling securing such loan through energy efficiency 
    improvements, as provided in subsection (d).

If there is an indebtedness which is secured by a lien against land 
owned by the veteran, the proceeds of a loan guaranteed under this 
section or made under section 3711 of this title for construction of a 
dwelling or farm residence on such land may be used also to liquidate 
such lien, but only if the reasonable value of the land is equal to or 
greater than the amount of the lien.
    (b) No loan may be guaranteed under this section or made under 
section 3711 of this title unless--
        (1) the proceeds of such loan will be used to pay for the 
    property purchased, constructed, or improved;
        (2) the contemplated terms of payment required in any mortgage 
    to be given in part payment of the purchase price or the 
    construction cost bear a proper relation to the veteran's present 
    and anticipated income and expenses;
        (3) the veteran is a satisfactory credit risk, as determined in 
    accordance with the credit underwriting standards established 
    pursuant to subsection (g) of this section;
        (4) the nature and condition of the property is such as to be 
    suitable for dwelling purposes;
        (5) except in the case of a loan described in clause (7) or (8) 
    of this subsection, the loan to be paid by the veteran for such 
    property or for the cost of construction, repairs, or alterations, 
    does not exceed the reasonable value thereof as determined pursuant 
    to section 3731 of this title;
        (6) if the loan is for repair, alteration, or improvement of 
    property, such repair, alteration, or improvement substantially 
    protects or improves the basic livability or utility of such 
    property;
        (7) in the case of a loan (other than a loan made for a purpose 
    specified in subsection (a)(8) of this section) that is made to 
    refinance--
            (A) a construction loan,
            (B) an installment land sales contract, or
            (C) a loan assumed by the veteran that provides for a lower 
        interest rate than the loan being refinanced,

    the amount of the loan to be guaranteed or made does not exceed the 
    lesser of--
            (i) the reasonable value of the dwelling or farm residence 
        securing the loan, as determined pursuant to section 3731 of 
        this title; or
            (ii) the sum of the outstanding balance on the loan to be 
        refinanced and the closing costs (including discounts) actually 
        paid by the veteran, as specified by the Secretary in 
        regulations; and

        (8) in the case of a loan to refinance a loan (other than a loan 
    or installment sales contract described in clause (7) of this 
    subsection or a loan made for a purpose specified in subsection 
    (a)(8) of this section), the amount of the loan to be guaranteed or 
    made does not exceed 90 percent of the reasonable value of the 
    dwelling or farm residence securing the loan, as determined pursuant 
    to section 3731 of this title.

    [(c) Repealed. Pub. L. 100-198, Sec. 3(a)(2), Dec. 21, 1987, 101 
Stat. 1315.]
    (d)(1) The Secretary shall carry out a program to demonstrate the 
feasibility of guaranteeing loans for the acquisition of an existing 
dwelling and the cost of making energy efficiency improvements to the 
dwelling or for energy efficiency improvements to a dwelling owned and 
occupied by a veteran. A loan may be guaranteed under this subsection 
only if it meets the requirements of this chapter, except as those 
requirements are modified by this subsection.
    (2) The cost of energy efficiency measures that may be financed by a 
loan guaranteed under this section may not exceed the greater of--
        (A) the cost of the energy efficiency improvements, up to 
    $3,000; or
        (B) $6,000, if the increase in the monthly payment for principal 
    and interest does not exceed the likely reduction in monthly utility 
    costs resulting from the energy efficiency improvements.

    (3) Notwithstanding the provisions of section 3703(a)(1)(A) of this 
title, any loan guaranteed under this subsection shall be guaranteed in 
an amount equal to the sum of--
        (A) the guaranty that would be provided under those provisions 
    for the dwelling without the energy efficiency improvements; and
        (B) an amount that bears the same relation to the cost of the 
    energy efficiency improvements as the guaranty referred to in 
    subparagraph (A) bears to the amount of the loan minus the cost of 
    such improvements.

    (4) The amount of the veteran's entitlement, calculated in 
accordance with section 3703(a)(1)(B) of this title, shall not be 
affected by the amount of the guaranty referred to in paragraph (3)(B).
    (5) The Secretary shall take appropriate actions to notify eligible 
veterans, participating lenders, and interested realtors of the 
availability of loan guarantees under this subsection and the procedures 
and requirements that apply to the obtaining of such guarantees.
    (6) For the purposes of this subsection:
        (A) The term ``energy efficiency improvement'' includes a solar 
    heating system, a solar heating and cooling system, or a combined 
    solar heating and cooling system, and the application of a 
    residential energy conservation measure.
        (B) The term ``solar heating'' has the meaning given such term 
    in section 3(1) of the Solar Heating and Cooling Demonstration Act 
    of 1974 (42 U.S.C. 5502(1)) and, in addition, includes a passive 
    system based on conductive, convective, or radiant energy transfer.
        (C) The terms ``solar heating and cooling'' and ``combined solar 
    heating and cooling'' have the meaning given such terms in section 
    3(2) of the Solar Heating and Cooling Demonstration Act of 1974 (42 
    U.S.C. 5502(2)) and, in addition, include a passive system based on 
    conductive, convective, or radiant energy transfer.
        (D) The term ``passive system'' includes window and skylight 
    glazing, thermal floors, walls, and roofs, movable insulation panels 
    (when in conjunction with glazing), portions of a residential 
    structure that serve as solar furnaces so as to add heat to the 
    structure, double-pane window insulation, and such other energy-
    related components as are determined by the Secretary to enhance the 
    natural transfer of energy for the purpose of heating or heating and 
    cooling a residence.
        (E) The term ``residential energy conservation measure'' means--
            (i) caulking and weatherstripping of all exterior doors and 
        windows;
            (ii) furnace efficiency modifications limited to--
                (I) replacement burners, boilers, or furnaces designed 
            to reduce the firing rate or to achieve a reduction in the 
            amount of fuel consumed as a result of increased combustion 
            efficiency,
                (II) devices for modifying flue openings which will 
            increase the efficiency of the heating system, and
                (III) electrical or mechanical furnace ignition systems 
            which replace standing gas pilot lights;

            (iii) clock thermostats;
            (iv) ceiling, attic, wall, and floor insulation;
            (v) water heater insulation;
            (vi) storm windows and doors;
            (vii) heat pumps; and
            (viii) such other energy conservation measures as the 
        Secretary may identify for the purposes of this subparagraph.

    (e)(1) For a loan to be guaranteed for the purpose specified in 
subsection (a)(8) or for the purpose specified in subsection (a)(11) of 
this section--
        (A) the interest rate of the loan must be less than the interest 
    rate of the loan being refinanced or, in a case in which the loan is 
    a fixed rate loan and the loan being refinanced is an adjustable 
    rate loan, the loan bears interest at a rate that is agreed upon by 
    the veteran and the mortgagee;
        (B) the loan must be secured by the same dwelling or farm 
    residence as was the loan being refinanced;
        (C) the amount of the loan may not exceed--
            (i) an amount equal to the sum of the balance of the loan 
        being refinanced and such closing costs (including any discount 
        permitted pursuant to section 3703(c)(3)(A) of this title) as 
        may be authorized by the Secretary (under regulations which the 
        Secretary shall prescribe) to be included in the loan; or
            (ii) in the case of a loan for the purpose specified in 
        subsection (a)(11), an amount equal to the sum of the amount 
        referred to with respect to the loan under clause (i) and the 
        amount specified under subsection (d)(2);

        (D) notwithstanding section 3703(a)(1) of this title, the amount 
    of the guaranty of the loan may not exceed the greater of (i) the 
    original guaranty amount of the loan being refinanced, or (ii) 25 
    percent of the loan;
        (E) the term of the loan may not exceed the original term of the 
    loan being refinanced by more than 10 years; and
        (F) the veteran must own the dwelling or farm residence securing 
    the loan and--
            (i) must occupy such dwelling or residence as such veteran's 
        home;
            (ii) must have previously occupied such dwelling or 
        residence as such veteran's home and must certify, in such form 
        as the Secretary shall require, that the veteran has previously 
        so occupied such dwelling or residence; or
            (iii) in any case in which a veteran is in active duty 
        status as a member of the Armed Forces and is unable to occupy 
        such residence or dwelling as a home because of such status, the 
        spouse of the veteran must occupy, or must have previously 
        occupied, such dwelling or residence as such spouse's home and 
        must certify such occupancy in such form as the Secretary shall 
        require.

    (2) A loan to a veteran may be guaranteed by the Secretary under 
this chapter for the purpose specified in clause (8) of subsection (a) 
of this section without regard to the amount of outstanding guaranty 
entitlement available for use by such veteran, and the amount of such 
veteran's guaranty entitlement shall not be charged as a result of any 
guaranty provided for such purpose. For purposes of section 3702(b) of 
this title, such loan shall be deemed to have been obtained with the 
guaranty entitlement used to obtain the loan being refinanced.
    (3) If a veteran is deceased and if such veteran's surviving spouse 
was a co-obligor under an existing loan guaranteed, insured, or made 
under this chapter, such surviving spouse shall, only for the purpose 
specified in subsection (a)(8) of this section, be deemed to be a 
veteran eligible for benefits under this chapter.
    (f)(1) For a loan to be guaranteed for the purpose specified in 
subclause (A)(ii) or (B)(ii) of subsection (a)(9) of this section, the 
purchase of (or the refinancing of a loan secured by) the manufactured 
home and the lot for that home shall be considered as one loan and must 
comply with such criteria as may be prescribed by the Secretary in 
regulations.
    (2) A loan may not be guaranteed for the purposes of subsection 
(a)(9) of this section unless the manufactured home purchased, upon 
being permanently affixed to the lot, is considered to be real property 
under the laws of the State where the lot is located.
    (g)(1) For the purposes of this subsection, the term ``veteran'', 
when used with respect to a loan guaranteed or to be guaranteed under 
this chapter, includes the veteran's spouse if the spouse is jointly 
liable with the veteran under the loan.
    (2) For the purpose of determining whether a veteran meets the 
standards referred to in subsection (b)(3) of this section and section 
3712(e)(2) of this title, the Secretary shall prescribe regulations 
which establish--
        (A) credit underwriting standards to be used in evaluating loans 
    to be guaranteed under this chapter; and
        (B) standards to be used by lenders in obtaining credit 
    information and processing loans to be guaranteed under this 
    chapter.

    (3) In the regulations prescribed under paragraph (2) of this 
subsection, the Secretary shall establish standards that include--
        (A) debt-to-income ratios to apply in the case of the veteran 
    applying for the loan;
        (B) criteria for evaluating the reliability and stability of the 
    income of the veteran applying for the loan; and
        (C) procedures for ascertaining the monthly income required by 
    the veteran to meet the anticipated loan payment terms.

If the procedures described in clause (C) of this paragraph include 
standards for evaluating residual income, the Secretary shall, in 
establishing such standards, give appropriate consideration to State 
statistics (in States as to which the Secretary determines that such 
statistics are reliable) pertinent to residual income and the cost of 
living in the State in question rather than in a larger region.
    (4)(A) Any lender making a loan under this chapter shall certify, in 
such form as the Secretary shall prescribe, that the lender has complied 
with the credit information and loan processing standards established 
under paragraph (2)(B) of this subsection, and that, to the best of the 
lender's knowledge and belief, the loan meets the underwriting standards 
established under paragraph (2)(A) of this subsection.
    (B) Any lender who knowingly and willfully makes a false 
certification under subparagraph (A) of this paragraph shall be liable 
to the United States Government for a civil penalty equal to two times 
the amount of the Secretary's loss on the loan involved or to another 
appropriate amount, not to exceed $10,000, whichever is greater. All 
determinations necessary to carry out this subparagraph shall be made by 
the Secretary.
    (5) Pursuant to regulations prescribed to carry out this paragraph, 
the Secretary may, in extraordinary situations, waive the application of 
the credit underwriting standards established under paragraph (2) of 
this subsection when the Secretary determines, considering the totality 
of circumstances, that the veteran is a satisfactory credit risk.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1207, Sec. 1810; Pub. L. 90-
301, Secs. 1(a), 2(a), May 7, 1968, 82 Stat. 113; Pub. L. 91-506, 
Sec. 3, Oct. 23, 1970, 84 Stat. 1108; Pub. L. 93-569, Sec. 3, Dec. 31, 
1974, 88 Stat. 1864; Pub. L. 94-324, Sec. 7(11), June 30, 1976, 90 Stat. 
721; Pub. L. 95-476, title I, Secs. 104, 105(a), Oct. 18, 1978, 92 Stat. 
1498, 1499; Pub. L. 96-385, title IV, Secs. 401(a), 402(a), Oct. 7, 
1980, 94 Stat. 1532, 1533; Pub. L. 98-223, title II, Sec. 205(a), Mar. 
2, 1984, 98 Stat. 42; Pub. L. 99-576, title IV, Sec. 402(a), (b), Oct. 
28, 1986, 100 Stat. 3280; Pub. L. 100-198, Secs. 3(a)(2), 7(a), (c), 
8(a)(2), 11(b), 13, Dec. 21, 1987, 101 Stat. 1315, 1318-1320, 1325; Pub. 
L. 100-322, title IV, Sec. 415(c)(4), May 20, 1988, 102 Stat. 551; Pub. 
L. 101-237, title III, Secs. 309, 313(b)(1), Dec. 18, 1989, 103 Stat. 
2075, 2077; renumbered Sec. 3710 and amended Pub. L. 102-83, 
Secs. 4(a)(2)(A)(iv), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403, 406; 
Pub. L. 102-547, Secs. 6(1), 9(a), (b), Oct. 28, 1992, 106 Stat. 3636, 
3641, 3642; Pub. L. 103-446, title IX, Secs. 904(a), (b), 905, Nov. 2, 
1994, 108 Stat. 4676, 4677; Pub. L. 104-110, title I, Sec. 101(e), Feb. 
13, 1996, 110 Stat. 768.)

                          Codification

    Another section 11(b) of Pub. L. 100-198 amended section 1831 [now 
3731] of this title.


                               Amendments

    1996--Subsec. (d)(7). Pub. L. 104-110 struck out par. (7) which read 
as follows: ``A loan may not be guaranteed under this subsection after 
December 31, 1995.''
    1994--Subsec. (a)(11). Pub. L. 103-446, Sec. 904(a), added par. 
(11).
    Subsec. (e)(1). Pub. L. 103-446, Sec. 904(b)(1), inserted ``or for 
the purpose specified in subsection (a)(11)'' after ``subsection 
(a)(8)'' in introductory provisions.
    Subsec. (e)(1)(A). Pub. L. 103-446, Sec. 905, inserted before 
semicolon at end ``or, in a case in which the loan is a fixed rate loan 
and the loan being refinanced is an adjustable rate loan, the loan bears 
interest at a rate that is agreed upon by the veteran and the 
mortgagee''.
    Subsec. (e)(1)(C). Pub. L. 103-446, Sec. 904(b)(2), substituted 
``may not exceed--'' and cls. (i) and (ii) for ``may not exceed an 
amount equal to the sum of the balance of the loan being refinanced and 
such closing costs (including any discount permitted pursuant to section 
3703(c)(3)(A) of this title) as may be authorized by the Secretary, 
under regulations which the Secretary shall prescribe, to be included in 
such loan;''.
    1992--Subsec. (a)(7). Pub. L. 102-547, Sec. 9(b)(1), amended par. 
(7) generally. Prior to amendment, par. (7) read as follows: ``To 
improve a dwelling or farm residence owned by the veteran and occupied 
by the veteran as the veteran's home through the installation of a solar 
heating system, a solar heating and cooling system, or a combined solar 
heating and cooling system or through the application of a residential 
energy conservation measure.''
    Subsec. (a)(10). Pub. L. 102-547, Sec. 9(b)(2), added par. (10).
    Subsec. (d). Pub. L. 102-547, Sec. 9(a), amended subsec. (d) 
generally. Prior to amendment, subsec. (d) defined terms ``solar 
heating'', ``solar heating and cooling'', ``combined solar heating and 
cooling'', ``passive system'', and ``residential energy conservation 
measure'' for purposes of subsec. (a)(7).
    Subsec. (e)(1)(D). Pub. L. 102-547, Sec. 6(1), amended subpar. (D) 
generally. Prior to amendment, subpar. (D) read as follows: ``the amount 
of the guaranty of the loan may not exceed the original guaranty amount 
of the loan being refinanced;''.
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 1810 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3704(c)(2)'' for ``1804(c)(2)'' in introductory provisions, 
``3712(a)(5)'' for ``1812(a)(5)'' in par. (9)(B)(ii), and ``3711'' for 
``1811'' in concluding provisions.
    Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted ``3711'' for 
``1811'' in introductory provisions and ``3731'' for ``1831'' in pars. 
(5), (7)(i), and (8).
    Subsec. (e)(1)(C). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3703(c)(3)(A)'' for ``1803(c)(3)(A)''.
    Subsec. (e)(2). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3702(b)'' for ``1802(b)''.
    Pub. L. 102-83, Sec. 4(a)(2)(A)(iv), substituted ``Secretary'' for 
``Veterans' Administration''.
    Subsec. (g)(2). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3712(e)(2)'' for ``1812(e)(2)''.
    1989--Subsec. (a)(6). Pub. L. 101-237, Sec. 313(b)(1), substituted 
``Secretary'' for ``Administrator'' wherever appearing.
    Subsec. (b)(5) to (8). Pub. L. 101-237, Sec. 309(b), inserted 
``except in the case of a loan described in clause (7) or (8) of this 
subsection,'' before ``the loan to be paid'' in cl. (5), struck out 
``and,'' at end of cl. (5), substituted semicolon for period at end of 
cl. (6), and added cls. (7) and (8).
    Subsecs. (d) to (g). Pub. L. 101-237, Sec. 313(b)(1), substituted 
``Secretary'' and ``Secretary's'' for ``Administrator'' and 
``Administrator's'', respectively, wherever appearing.
    Subsec. (h). Pub. L. 101-237, Sec. 309(a), struck out subsec. (h) 
which read as follows: ``The amount of a loan guaranteed for the purpose 
specified in subsection (a)(5) of this section may not exceed the amount 
equal to 90 percent of the appraised value of the dwelling or farm 
residence which will secure the loan, as determined by the 
Administrator.''
    1988--Subsec. (a)(9)(B)(ii). Pub. L. 100-322, Sec. 415(c)(4)(A), 
substituted ``section 1812(a)(5)'' for ``section 1819(a)(5)''.
    Subsec. (g)(2). Pub. L. 100-322, Sec. 415(c)(4)(B), substituted 
``section 1812(e)(2)'' for ``section 1819(e)(2)''.
    1987--Subsec. (a). Pub. L. 100-198, Sec. 8(a)(2), substituted 
``Except as provided in section 1804(c)(2) of this title, any'' for 
``Any''.
    Subsec. (b). Pub. L. 100-198, Sec. 11(b), substituted ``pursuant to 
section 1831 of this title'' for ``by the Administrator'' in cl. (5) and 
struck out last sentence which read as follows: ``After the reasonable 
value of any property, construction, repairs, or alterations is 
determined under paragraph (5), the Administrator shall, as soon as 
possible thereafter, notify the veteran concerned of such 
determination.''
    Subsec. (c). Pub. L. 100-198, Sec. 3(a)(2), struck out subsec. (c) 
which read as follows: ``The amount of guaranty entitlement available to 
a veteran under this section shall not be more than $27,500 less such 
entitlement as may have been used previously under this section and 
other sections of this chapter.''
    Subsec. (e)(1)(B). Pub. L. 100-198, Sec. 7(a)(1), struck out ``and 
such dwelling or residence must be owned and occupied by the veteran as 
such veteran's home'' after ``refinanced''.
    Subsec. (e)(1)(D). Pub. L. 100-198, Sec. 7(a)(2), struck out ``and'' 
at end.
    Subsec. (e)(1)(E). Pub. L. 100-198, Sec. 7(a)(3), substituted ``by 
more than 10 years; and'' for period at end.
    Subsec. (e)(1)(F). Pub. L. 100-198, Sec. 7(a)(4), added cl. (F).
    Subsec. (g)(3). Pub. L. 100-198, Sec. 13, inserted at end ``If the 
procedures described in clause (C) of this paragraph include standards 
for evaluating residual income, the Administrator shall, in establishing 
such standards, give appropriate consideration to State statistics (in 
States as to which the Administrator determines that such statistics are 
reliable) pertinent to residual income and the cost of living in the 
State in question rather than in a larger region.''
    Subsec. (h). Pub. L. 100-198, Sec. 7(c), added subsec. (h).
    1986--Subsec. (b)(3). Pub. L. 99-576, Sec. 402(a), inserted ``, as 
determined in accordance with the credit underwriting standards 
established pursuant to subsection (g) of this section''.
    Subsec. (g). Pub. L. 99-576, Sec. 402(b), added subsec. (g).
    1984--Subsec. (a)(9). Pub. L. 98-223, Sec. 205(a)(1), added par. 
(9).
    Subsec. (f). Pub. L. 98-223, Sec. 205(a)(2), added subsec. (f).
    1980--Subsec. (a)(8). Pub. L. 96-385, Sec. 401(a)(1), added par. 
(8).
    Subsec. (c). Pub. L. 96-385, Sec. 402(a), substituted ``$27,500'' 
for ``$25,000''.
    Subsec. (e). Pub. L. 96-385, Sec. 401(a)(2), added subsec. (e).
    1978--Subsec. (a)(6). Pub. L. 95-476, Sec. 104(1), struck out 
requirement that the purchased residential unit be in a new condominium 
development, struck out provision that such unit could be in a structure 
built and sold as a condominium, and inserted provision that the 
criteria prescribed by the Administrator be prescribed through 
regulations.
    Subsec. (a)(7). Pub. L. 95-476, Sec. 104(2), added par. (7).
    Subsec. (c). Pub. L. 95-476, Sec. 105(a), substituted ``$25,000'' 
for ``$17,500''.
    Subsec. (d). Pub. L. 95-476, Sec. 104(3), added subsec. (d).
    1976--Subsec. (a). Pub. L. 94-324 substituted ``the veteran'', ``the 
veteran's'' and ``the Administrator'' for ``him'', ``his'' and ``he'', 
respectively, wherever appearing.
    1974--Subsec. (a)(5). Pub. L. 93-569, Sec. 3(1), struck out 
``Nothing in this chapter shall preclude a veteran from paying to a 
lender any discount required by such lender in connection with such 
refinancing.''
    Subsec. (a)(6). Pub. L. 93-569, Sec. 3(2), added par. (6).
    Subsec. (c). Pub. L. 93-569, Sec. 3(3), substituted ``$17,500'' for 
``$12,500''.
    Subsec. (d). Pub. L. 93-569, Sec. 3(4), struck out subsec. (d) 
relating to guaranty of loans for purchase of a one-family residential 
unit in a condominium housing project or development as to which 
Secretary of Housing and Urban Development has issued, under section 234 
of the National Housing Act, evidence of insurance.
    1970--Subsec. (a). Pub. L. 91-506, Sec. 3(1), added par. (5) 
permitting a veteran to use his loan guaranty eligibility to refinance 
existing mortgage loans or other liens on dwellings on farm residences 
he occupies and provided that veterans using loan guarantees for such 
refinancing may pay points demanded by a lender.
    Subsec. (d). Pub. L. 91-506, Sec. 3(2), added subsec. (d).
    1968--Subsec. (b). Pub. L. 90-301, Sec. 2(a), substituted ``loan to 
be paid'' for ``price paid or to be paid'' in par. (5) of first sentence 
and inserted sentence at end relating to notification of veteran 
concerned of determination of reasonable value of any property, 
construction, repairs, or alterations.
    Subsec. (c). Pub. L. 90-301, Sec. 1(a), increased limitation on 
amount of guaranty entitlement from $7,500 to $12,500.


                    Effective Date of 1987 Amendment

    Amendment by section 3(a)(2) of Pub. L. 100-198 applicable to loans 
closed on or after Feb. 1, 1988, but not applicable to any loan for 
which a guaranty commitment is made on or before Dec. 31, 1987, see 
section 3(d) of Pub. L. 100-198, set out as a note under section 3703 of 
this title.
    Section 7(d) of Pub. L. 100-198 provided that:
    ``(1) The amendments made by subsections (a) and (b) of this section 
[amending this section and section 1819 [now 3712] of this title] shall 
apply to loans made more than 30 days after the date of the enactment of 
this Act [Dec. 21, 1987].
    ``(2) The amendment made by subsection (c) of this section [amending 
this section] shall apply to loans for which commitments are made more 
than 60 days after the date of the enactment of this Act.''
    Amendment by section 8(a)(2) of Pub. L. 100-198 applicable with 
respect to loans made more than 30 days after Dec. 21, 1987, see section 
8(c) of Pub. L. 100-198, set out as a note under section 3704 of this 
title.


                    Effective Date of 1980 Amendment

    Amendment by sections 401(a) and 402(a) of Pub. L. 96-385 effective 
Oct. 7, 1980, and Oct. 1, 1980, respectively, see section 601(b), (d) of 
Pub. L. 96-385, set out as a note under section 1114 of this title.


                    Effective Date of 1978 Amendment

    Amendment by sections 104(2), (3) and 105(a) of Pub. L. 95-476 
effective Oct. 1, 1978, and amendment by section 104(1) of Pub. L. 95-
476 effective July 1, 1979, except with respect to the authority to 
prescribe regulations for the implementation of such amendment, which is 
effective Oct. 18, 1978, see section 108(a), (b) of Pub. L. 95-476, set 
out as a note under section 3702 of this title.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-324 effective June 30, 1976, see section 
9(a) of Pub. L. 94-324, set out as a note under section 3701 of this 
title.


                    Effective Date of 1974 Amendment

    Amendment by Pub. L. 93-569 effective Dec. 31, 1974, except that 
amendment by section 3(2), (4) of Pub. L. 93-569 effective ninety days 
after Dec. 31, 1974, see section 10 of Pub. L. 93-569, set out as a note 
under section 3702 of this title.


       Ratification of Actions During Period of Expired Authority

    Any action taken by Secretary of Veterans Affairs before Feb. 13, 
1996, under provision of law amended by title I of Pub. L. 104-110 that 
was taken during period beginning on date on which authority of 
Secretary under such provision of law expired and ending on Feb. 13, 
1996, considered to have same force and effect as if such amendment had 
been in effect at time of that action, see section 103 of Pub. L. 104-
110, set out as a note under section 1710 of this title.


   Reports on Energy Efficient Mortgages Guaranteed Under This Section

    Section 9(c) of Pub. L. 102-547 directed Secretary of Veterans 
Affairs to transmit report on energy efficient mortgages to Committees 
on Veterans' Affairs of Senate and House of Representatives not later 
than 1 year after date on which Secretary first exercises authority to 
guarantee loans under section 3710(d) of this title and for each of the 
3 years thereafter, prior to repeal by Pub. L. 104-110, title II, 
Sec. 201(b), Feb. 13, 1996, 110 Stat. 770.

                  Section Referred to in Other Sections

    This section is referred to in sections 3701, 3703, 3704, 3708, 
3711, 3712, 3713, 3714, 3722, 3729, 3732, 3733, 3736, 3762 of this 
title.
