
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: 38USC3712]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
 
                          SUBCHAPTER II--LOANS
 
Sec. 3712. Loans to purchase manufactured homes and lots

    (a)(1) Notwithstanding any other provision of this chapter, any loan 
to a veteran eligible for the housing loan benefits of this chapter, if 
made pursuant to the provisions of this section, may be guaranteed if 
such loan is for one of the following purposes:
        (A) To purchase a lot on which to place a manufactured home 
    already owned by the veteran.
        (B) To purchase a single-wide manufactured home.
        (C) To purchase a single-wide manufactured home and a lot on 
    which to place such home.
        (D) To purchase a double-wide manufactured home.
        (E) To purchase a double-wide manufactured home and a lot on 
    which to place such home.
        (F) To refinance in accordance with paragraph (4) of this 
    subsection an existing loan guaranteed, insured, or made under this 
    section.
        (G) To refinance in accordance with paragraph (5) of this 
    subsection an existing loan that was made for the purchase of, and 
    that is secured by, a manufactured home and to purchase a lot on 
    which such manufactured home is or will be placed.

    (2) A loan for any of the purposes described in paragraph (1) of 
this subsection (other than the refinancing under clause (F) of such 
paragraph of an existing loan) may include an amount determined by the 
Secretary to be appropriate to cover the cost of necessary preparation 
of a lot already owned or to be acquired by the veteran, including the 
costs of installing utility connections and sanitary facilities, of 
paving, and of constructing a suitable pad for the manufactured home.
    (3) Any loan made for the purposes described in clause (C), (E), or 
(G) of paragraph (1) of this subsection shall be considered as part of 
one loan. The transaction may be evidenced by a single loan instrument 
or by separate loan instruments for (A) that portion of the loan which 
finances the purchase of the manufactured home, and (B) that portion of 
the loan which finances the purchase of the lot and the necessary 
preparation of such lot.
    (4)(A) For a loan to be guaranteed for the purpose specified in 
clause (F) of paragraph (1) of this subsection--
        (i) the interest rate of the loan must be less than the interest 
    rate of the loan being refinanced;
        (ii) the loan must be secured by the same manufactured home or 
    manufactured-home lot, or manufactured home and manufactured-home 
    lot, as was the loan being refinanced;
        (iii) the amount of the loan 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;
        (iv) 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;
        (v) the term of the loan may not exceed the original term of the 
    loan being refinanced;
        (vi) the veteran must own the manufactured home, or the 
    manufactured-home lot, or the manufactured home and the 
    manufactured-home lot, securing the loan and--
            (I) must occupy the home, a manufactured home on the lot, or 
        the home and the lot, securing the loan;
            (II) must have previously occupied the home, a manufactured 
        home on the lot, or the home and the lot, securing the loan as 
        the veteran's home and must certify, in such form as the 
        Secretary shall require, that the veteran has previously so 
        occupied the home (or such a home on the lot); 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 
        the home, a manufactured home on the lot, or the home and the 
        lot, as a home because of such status, the spouse of the veteran 
        must occupy, or must have previously occupied, the manufactured 
        home on the lot, or the home and the lot, as such spouse's home 
        and must certify such occupancy in such form as the Secretary 
        shall require.

    (B) A loan to a veteran may be guaranteed by the Secretary under 
this chapter for the purpose specified in clause (F) of paragraph (1) of 
this subsection 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.
    (C) If a veteran is deceased and if such veteran's surviving spouse 
was a co-obligor under an existing loan previously guaranteed, insured, 
or made for purposes specified in this section, such surviving spouse 
shall, only for the purpose specified in clause (F) of paragraph (1) of 
this subsection, be deemed to be a veteran eligible for benefits under 
this chapter.
    (5)(A) For a loan to be guaranteed for the purpose specified in 
paragraph (1)(G) of this subsection or section 3710(a)(9)(B)(ii) of this 
title--
        (i) the loan must be secured by the same manufactured home as 
    was the loan being refinanced and such manufactured home must be 
    owned and occupied by the veteran (except as provided in section 
    3704(c)(2) of this title) as such veteran's home; and
        (ii) the amount of the loan may not exceed an amount equal to 
    the sum of--
            (I) the purchase price of the lot,
            (II) the amount (if any) determined by the Secretary to be 
        appropriate under paragraph (2) of this subsection to cover the 
        cost of necessary preparation of such lot,
            (III) the balance of the loan being refinanced, and
            (IV) such closing costs (including any discount permitted 
        pursuant to section 3703(c)(3)(E) of this title) as may be 
        authorized by the Secretary, under regulations which the 
        Secretary shall prescribe, to be included in such loan.

    (B) When a loan is made to a veteran for the purpose specified in 
paragraph (1)(G) of this subsection or section 3710(a)(9)(B)(ii) of this 
title, and the loan being refinanced was guaranteed, insured, or made 
under this section, the portion of the loan made for the purpose of 
refinancing such loan may be guaranteed by the Secretary under this 
chapter 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 portion of such loan. For the purposes of section 
3702(b) of this title, such portion of such loan shall be deemed to have 
been obtained with the guaranty entitlement used to obtain the loan 
being refinanced.
    (b)(1) Use of entitlement for purposes specified in this section for 
the purchase of a manufactured home unit shall preclude the use of 
remaining entitlement for the purchase of an additional manufactured 
home unit until the unit which secured the loan has been disposed of by 
the veteran or has been destroyed by fire or other natural hazard.
    (2) The Secretary shall restore entitlement to all housing loan 
benefits under this chapter for the veteran when the conditions 
prescribed in section 3702(b) of this title have been met.
    (c)(1) Loans for any of the purposes authorized by subsection (a) of 
this section shall be submitted to the Secretary for approval prior to 
the closing of the loan, except that the Secretary may exempt any lender 
of a class listed in section 3702(d) of this title from compliance with 
such prior approval requirement if the Secretary determines that the 
experience of such lender or class of lenders in manufactured home 
financing warrants such exemption.
    (2) Upon determining that a loan submitted for prior approval is 
eligible for guaranty for purposes specified in this section, the 
Secretary shall issue a commitment to guarantee such loan and shall 
thereafter guarantee the loan when made if such loan qualifies therefor 
in all respects.
    (3)(A) The Secretary's guaranty may not exceed the lesser of (i) the 
lesser of $20,000 or 40 percent of the loan, or (ii) the maximum amount 
of the guaranty entitlement available to the veteran as specified in 
paragraph (4) of this subsection.
    (B) A claim under the Secretary's guaranty shall, at the election of 
the holder of a loan, be made by the filing of an accounting with the 
Secretary--
        (i) within a reasonable time after the receipt by such holder of 
    an appraisal by the Secretary of the value of the security for the 
    loan; or
        (ii) after liquidation of the security for the loan.

    (C) If the holder of a loan applies for payment of a claim under 
clause (i) of subparagraph (B) of this paragraph, the amount of such 
claim payable by the Secretary shall be the lesser of--
        (i) the amount equal to the excess, if any, of the total 
    indebtedness over the amount of the appraisal referred to in such 
    clause; or
        (ii) the amount equal to the guaranty under this section.

    (D) If the holder of a loan files for payment of a claim under 
clause (ii) of subparagraph (B) of this paragraph, the amount of such 
claim payable by the Secretary shall be the lesser of--
        (i) the amount equal to the excess, if any, of the total 
    indebtedness over the greater of the value of the property securing 
    the loan, as determined by the Secretary, or the amount of the 
    liquidation or resale proceeds; or
        (ii) the amount equal to the guaranty under this section.

    (E) In any accounting filed pursuant to subparagraph (B)(ii) of this 
paragraph, the Secretary shall permit to be included therein accrued 
unpaid interest from the date of the first uncured default to such 
cutoff date as the Secretary may establish, and the Secretary shall 
allow the holder of the loan to charge against the liquidation or resale 
proceeds accrued interest from the cutoff date established to such 
further date as the Secretary may determine and such costs and expenses 
as the Secretary determines to be reasonable and proper.
    (F) The liability of the United States under the guaranty provided 
for by this paragraph shall decrease or increase pro rata with any 
decrease or increase of the amount of the unpaid portion of the 
obligation.
    (4) The maximum amount of guaranty entitlement available to a 
veteran for purposes specified in this section shall be $20,000 reduced 
by the amount of any such entitlement previously used by the veteran. 
Use of entitlement for purposes specified in section 3710 or 3711 of 
this title shall reduce entitlement available for use for purposes 
specified in this section to the same extent that entitlement available 
for purposes specified in such section 3710 is reduced below $20,000.
    (5) The amount of any loan guaranteed for purposes specified in this 
section shall not exceed an amount equal to 95 percent of the purchase 
price of the property securing the loan.
    (d)(1) The maturity of any loan guaranteed for purposes specified in 
this section shall not be more than--
        (A) fifteen years and thirty-two days, in the case of a loan for 
    the purchase of a lot;
        (B) twenty years and thirty-two days, in the case of a loan for 
    the purchase of--
            (i) a single-wide manufactured home; or
            (ii) a single-wide manufactured home and a lot;

        (C) twenty-three years and thirty-two days, in the case of a 
    loan for the purchase of a double-wide manufactured home; or
        (D) twenty-five years and thirty-two days, in the case of a loan 
    for the purchase of a double-wide manufactured home and a lot.

    (2) Nothing in paragraph (1) of this subsection shall preclude the 
Secretary, under regulations which the Secretary shall prescribe, from 
consenting to necessary advances for the protection of the security or 
the holder's lien, to a reasonable extension of the term of such loan, 
or to a reasonable reamortization of such loan.
    (e) No loan shall be guaranteed for purposes specified in this 
section unless--
        (1) the loan is repayable in approximately equal monthly 
    installments;
        (2) the terms of repayment bear a proper relationship to the 
    veteran's present and anticipated income and expenses, and the 
    veteran is a satisfactory credit risk, as determined in accordance 
    with the regulations prescribed under section 3710(g) of this title 
    and taking into account the purpose of this program to make 
    available lower cost housing to low and lower income veterans, 
    especially those who have been recently discharged or released from 
    active military, naval, or air service, who may not have previously 
    established credit ratings;
        (3) the loan is secured by a first lien on the manufactured home 
    purchased with the proceeds of the loan and on any lot acquired or 
    improved with the proceeds of the loan;
        (4) the amount of the loan to be paid by the veteran is not in 
    excess of the amount determined to be reasonable, based upon--
            (A) with respect to any portion of the loan to purchase a 
        new manufactured home, such cost factors as the Secretary 
        considers proper to take into account;
            (B) with respect to any portion of the loan to purchase a 
        used manufactured home, the reasonable value of the property, as 
        determined by the Secretary;
            (C) with respect to any portion of the loan to purchase a 
        lot, the reasonable value of such lot, as determined by the 
        Secretary; and
            (D) with respect to any portion of the loan to cover the 
        cost of necessary site preparation, an appropriate amount, as 
        determined by the Secretary;

        (5) the veteran certifies, in such form as the Secretary shall 
    prescribe, that the veteran will personally occupy the property as 
    the veteran's home; except that the requirement of this clause shall 
    not apply (A) in the case of a guaranteed loan that is for the 
    purpose described in paragraph (1)(F) of subsection (a), or (B) in 
    the case described in section 3704(c)(2);
        (6) the manufactured home is or will be placed on a site which 
    meets specifications which the Secretary shall establish by 
    regulation; and
        (7) the interest rate to be charged on the loan does not exceed 
    the permissible rate established by the Secretary.

    (f) The Secretary shall establish such rate of interest for 
manufactured home loans and manufactured home lot loans as the Secretary 
determines to be necessary in order to assure a reasonable supply of 
manufactured home loan financing for veterans for purposes specified in 
this section.
    (g) The Secretary shall promulgate such regulations as the Secretary 
determines to be necessary or appropriate in order to fully implement 
the provisions of this section, and such regulations may specify which 
provisions in other sections of this chapter the Secretary determines 
should be applicable to loans guaranteed or made for purposes specified 
in this section. The Secretary shall have such powers and 
responsibilities in respect to matters arising under this section as the 
Secretary has in respect to loans made or guaranteed or under other 
sections of this chapter.
    (h)(1) No loan for the purchase of a manufactured home shall be 
guaranteed for purposes specified in this section unless the 
manufactured home and lot, if any, meet or exceed standards for 
planning, construction, and general acceptability as prescribed by the 
Secretary and no loan for the purchase of a lot on which to place a 
manufactured home owned by a veteran shall be guaranteed for purposes 
specified in this section unless the lot meets such standards prescribed 
for manufactured home lots. Such standards shall be designed to 
encourage the maintenance and development of sites for manufactured 
homes which will be attractive residential areas and which will be free 
from, and not substantially contribute to, adverse scenic or 
environmental conditions.
    (2) Any manufactured housing unit properly displaying a 
certification of conformity to all applicable Federal manufactured home 
construction and safety standards pursuant to section 616 of the 
National Manufactured Housing Construction and Safety Standards Act of 
1974 (42 U.S.C. 5415) shall be deemed to meet the standards required by 
paragraph (1).
    (i) The Secretary shall require the manufacturer to become a 
warrantor of any new manufactured home which is approved for purchase 
with financing through the assistance of this chapter and to furnish to 
the purchaser a written warranty in such form as the Secretary shall 
require. Such warranty shall include (1) a specific statement that the 
manufactured home meets the standards prescribed by the Secretary 
pursuant to the provisions of subsection (h) of this section; and (2) a 
provision that the warrantor's liability to the purchaser or owner is 
limited under the warranty to instances of substantial nonconformity to 
such standards which become evident within one year from date of 
purchase and as to which the purchaser or owner gives written notice to 
the warrantor not later than ten days after the end of the warranty 
period. The warranty prescribed herein shall be in addition to, and not 
in derogation of, all other rights and privileges which such purchaser 
or owner may have under any other law or instrument and shall so provide 
in the warranty document.
    (j) Subject to notice and opportunity for a hearing, the Secretary 
is authorized to deny guaranteed or direct loan financing in the case 
of--
        (1) manufactured homes constructed by a manufacturer who fails 
    or is unable to discharge the manufacturer's obligations under the 
    warranty;
        (2) manufactured homes which are determined by the Secretary not 
    to conform to the standards provided for in subsection (h); or
        (3) a manufacturer of manufactured homes who has engaged in 
    procedures or practices determined by the Secretary to be unfair or 
    prejudicial to veterans or the Government.

    (k) Subject to notice and opportunity for a hearing, the Secretary 
may refuse to approve as acceptable any site in a manufactured home park 
or subdivision owned or operated by any person whose rental or sale 
methods, procedures, requirements, or practices are determined by the 
Secretary to be unfair or prejudicial to veterans renting or purchasing 
such sites. The Secretary may also refuse to guarantee or make direct 
loans for veterans to purchase manufactured homes offered for sale by 
any dealer if substantial deficiencies have been discovered in such 
homes, or if the Secretary determines that there has been a failure or 
indicated inability of the dealer to discharge contractual liabilities 
to veterans, or that the type of contract of sale or methods, 
procedures, or practices pursued by the dealer in the marketing of such 
properties have been unfair or prejudicial to veteran purchasers.
    (l) The provisions of sections 3704(d) and 3721 of this title shall 
be fully applicable to lenders making guaranteed manufactured home loans 
and manufactured home lot loans and holders of such loans.

(Added Pub. L. 91-506, Sec. 5, Oct. 23, 1970, 84 Stat. 1110, Sec. 1819; 
amended Pub. L. 93-569, Sec. 5, Dec. 31, 1974, 88 Stat. 1864; Pub. L. 
94-324, Secs. 5, 7(20)-(23), June 30, 1976, 90 Stat. 720, 722; Pub. L. 
95-476, title I, Sec. 107, Oct. 18, 1978, 92 Stat. 1500; Pub. L. 96-385, 
title IV, Secs. 401(b), 402(c), Oct. 7, 1980, 94 Stat. 1532, 1533; Pub. 
L. 97-66, title V, Sec. 503, Oct. 17, 1981, 95 Stat. 1032; Pub. L. 97-
72, title III, Sec. 303(h), (i), Nov. 3, 1981, 95 Stat. 1060; Pub. L. 
97-295, Sec. 4(66), Oct. 12, 1982, 96 Stat. 1310; Pub. L. 97-306, title 
IV, Sec. 406(a), (c)(2), Oct. 14, 1982, 96 Stat. 1444, 1445; Pub. L. 98-
223, title II, Sec. 205(b), Mar. 2, 1984, 98 Stat. 43; Pub. L. 99-576, 
title IV, Sec. 402(c)(2), Oct. 28, 1986, 100 Stat. 3281; Pub. L. 100-
198, Secs. 3(b), 7(b), 8(b), Dec. 21, 1987, 101 Stat. 1315, 1318, 1320; 
Pub. L. 100-253, Sec. 3(b), Feb. 29, 1988, 102 Stat. 20; renumbered 
Sec. 1812 and amended Pub. L. 100-322, title IV, Sec. 415(b)(4), May 20, 
1988, 102 Stat. 551; Pub. L. 101-237, title III, Sec. 313(b)(1), (7), 
Dec. 18, 1989, 103 Stat. 2077; Pub. L. 101-508, title VIII, 
Sec. 8031(a), Nov. 5, 1990, 104 Stat. 1388-348; Pub. L. 102-54, 
Sec. 14(c)(8), June 13, 1991, 105 Stat. 285; renumbered Sec. 3712 and 
amended Pub. L. 102-83, Secs. 4(a)(2)(A)(v), 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 403, 406; Pub. L. 1102-547, Sec. 6(2), Oct. 28, 1992, 106 
Stat. 3636; Pub. L. 103-446, title IX, Sec. 906, title XII, 
Sec. 1201(e)(14), Nov. 2, 1994, 108 Stat. 4677, 4685; Pub. L. 104-66, 
title I, Sec. 1141(b), Dec. 21, 1995, 109 Stat. 726.)


                               Amendments

    1995--Subsecs. (l), (m). Pub. L. 104-66 redesignated subsec. (m) as 
(l) and struck out former subsec. (l) which read as follows: ``The 
Secretary's annual report to Congress shall include a report on 
operations under this section, including experience with compliance with 
the warranty required by subsection (i) and the experience regarding 
defaults and foreclosures.''
    1994--Subsec. (c)(3)(D). Pub. L. 103-446, Sec. 1201(e)(14)(A)(i), 
inserted ``of'' after ``subparagraph (B)'' in introductory provisions.
    Subsec. (c)(3)(E). Pub. L. 103-446, Sec. 1201(e)(14)(A)(ii), 
substituted ``subparagraph (B)(ii) of this paragraph'' for 
``subparagraph (B)(ii) of this subsection''.
    Subsec. (h)(2). Pub. L. 103-446, Sec. 906(a), amended par. (2) 
generally. Prior to amendment, par. (2) required the Secretary to 
inspect the manufacturing process of manufacturers of manufactured homes 
sold to veterans and provided for the delegation of that function to the 
Secretary of Housing and Urban Development.
    Subsec. (j). Pub. L. 103-446, Sec. 906(b), substituted ``in the case 
of--'' and pars. (1) to (3) for ``in the case of manufactured homes 
constructed by any manufacturer who refuses to permit the inspections 
provided for in subsection (h) of this section; or in the case of 
manufactured homes which are determined by the Secretary not to conform 
to the aforesaid standards; or where the manufacturer of manufactured 
homes fails or is unable to discharge the manufacturer's obligations 
under the warranty.''
    Subsec. (l). Pub. L. 103-446, Sec. 906(c), struck out ``the results 
of inspections required by subsection (h) of this section,'' after 
``including'' and ``of this section'' after ``subsection (i)''.
    Subsec. (m). Pub. L. 103-446, Sec. 1201(e)(14)(B), substituted 
``sections 3704(d) and 3721 of this title'' for ``section 3704(d) and 
section 3721 of this chapter''.
    1992--Subsec. (a)(4)(A)(iv). Pub. L. 102-547 amended cl. (iv) 
generally. Prior to amendment, cl. (iv) 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 1812 of this 
title as this section.
    Subsec. (a)(4)(A)(iii). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3703(c)(3)(A)'' for ``1803(c)(3)(A)''.
    Subsec. (a)(4)(B). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3702(b)'' for ``1802(b)''.
    Pub. L. 102-83, Sec. 4(a)(2)(A)(v), substituted ``Secretary'' for 
``Veterans' Administration''.
    Subsec. (a)(5)(A). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3710(a)(9)(B)(ii)'' for ``1810(a)(9)(B)(ii)'' in introductory 
provisions, ``3704(c)(2)'' for ``1804(c)(2)'' in cl. (i), and 
``3703(c)(3)(E)'' for ``1803(c)(3)(E)'' in cl. (ii)(IV).
    Subsec. (a)(5)(B). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3710(a)(9)(B)(ii)'' for ``1810(a)(9)(B)(ii)'' and ``3702(b)'' for 
``1802(b)''.
    Pub. L. 102-83, Sec. 4(a)(2)(A)(v), substituted ``Secretary'' for 
``Veterans' Administration''.
    Subsec. (b)(2). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3702(b)'' for ``1802(b)''.
    Subsec. (c)(1). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3702(d)'' for ``1802(d)''.
    Subsec. (c)(4). Pub. L. 102-83, Sec. 5(c)(1), substituted ``3710 or 
3711'' for ``1810 or 1811'' and ``3710'' for ``1810''.
    Subsec. (c)(5). Pub. L. 102-54, Sec. 14(c)(8)(A), substituted ``for 
purposes specified in this section'' for ``under this section''.
    Subsec. (e)(2). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3710(g)'' for ``1810(g)''.
    Subsec. (e)(5). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3704(c)(2)'' for ``1804(c)(2)''.
    Subsec. (l). Pub. L. 102-54, Sec. 14(c)(8)(B), struck out ``, 
beginning 12 months following October 23, 1970,'' after ``shall''.
    Subsec. (m). Pub. L. 102-83, Sec. 5(c)(1), substituted ``3704(d)'' 
for ``1804(d)'' and ``3721'' for ``1821''.
    1990--Subsec. (c)(3). Pub. L. 101-508 amended par. (3) generally. 
Prior to amendment, par. (3) read as follows: ``The Secretary's guaranty 
may not exceed the lesser of (A) the lesser of $20,000 or 40 percent of 
the loan, or (B) the maximum amount of guaranty entitlement available to 
the veteran as specified in paragraph (4) of this subsection. Payment of 
a claim under such guaranty shall be made only after liquidation of the 
security for the loan and the filing of an accounting with the 
Secretary. In any such accounting the Secretary shall permit to be 
included therein accrued unpaid interest from the date of the first 
uncured default to such cutoff date as the Secretary may establish, and 
the Secretary shall allow the holder of the loan to charge against the 
liquidation or resale proceeds, accrued interest from the cutoff date 
established to such further date as the Secretary may determine and such 
costs and expenses as the Secretary determines to be reasonable and 
proper. The liability of the United States under the guaranty provided 
for by this section shall decrease or increase pro rata with any 
decrease or increase of the amount of the unpaid portion of the 
obligation.''
    1989--Subsecs. (a) to (h)(2)(A). Pub. L. 101-237, Sec. 313(b)(1), 
substituted ``Secretary'' and ``Secretary's'' for ``Administrator'' and 
``Administrator's'', respectively, wherever appearing.
    Subsec. (h)(2)(B). Pub. L. 101-237, Sec. 313(b)(7), substituted 
``Secretary of Housing and Urban Development pursuant'' for ``Secretary 
pursuant'' and substituted ``Secretary of Veterans Affairs'' for 
``Administrator'' wherever appearing.
    Subsecs. (i) to (l). Pub. L. 101-237, Sec. 313(b)(1), substituted 
``Secretary'' and ``Secretary's'' for ``Administrator'' and 
``Administrator's'', respectively, wherever appearing.
    1988--Pub. L. 100-322, Sec. 415(b)(4)(C), renumbered section 1819 of 
this title as this section.
    Subsecs. (a)(4)(C), (b)(1), (c)(2). Pub. L. 100-322, 
Sec. 415(b)(4)(A), substituted ``for purposes specified in this 
section'' for ``under this section''.
    Subsec. (c)(3). Pub. L. 100-322, Sec. 415(b)(4)(B)(i), inserted ``as 
specified in paragraph (4) of this subsection'' before period at end.
    Pub. L. 100-253, Sec. 3(b)(1), substituted ``the lesser of (A) the 
lesser of $20,000 or 40 percent of the loan, or (B) the maximum amount 
of guaranty entitlement available to the veteran'' for ``40 percent of 
the loan, or $20,000, whichever is less, reduced by the amount of 
entitlement previously used by the veteran under this chapter and not 
restored as a result of the exclusion in section 1802(b) of this 
title''.
    Subsec. (c)(4). Pub. L. 100-322, Sec. 415(b)(4)(A), (B)(ii), (iii), 
substituted ``for purposes specified in this section'' for ``under this 
section'' in two places, ``for purposes specified in section 1810'' for 
``under section 1810'', and ``for purposes specified in such section 
1810'' for ``under such section 1810''.
    Pub. L. 100-253, Sec. 3(b)(2), substituted ``maximum amount of 
guaranty entitlement available to a veteran under this section shall be 
$20,000 reduced by the amount of any such entitlement previously used by 
the veteran'' for ``amount of any loan guaranteed under this section 
shall not exceed an amount equal to 95 percent of the purchase price of 
the property securing such loan''.
    Subsec. (c)(5). Pub. L. 100-253, Sec. 3(b)(3), added par. (5).
    Subsecs. (d)(1), (e) to (g), (h)(1). Pub. L. 100-322, 
Sec. 415(b)(4)(A), substituted ``for purposes specified in this 
section'' for ``under this section''.
    1987--Subsec. (a)(4)(A)(ii). Pub. L. 100-198, Sec. 7(b)(1), struck 
out ``and such manufactured home (or a manufactured home on such lot) 
must be owned and occupied by the veteran as such veteran's home'' 
before semicolon at end.
    Subsec. (a)(4)(A)(vi). Pub. L. 100-198, Sec. 7(b)(2)-(4), added cl. 
(vi).
    Subsec. (a)(5)(A)(i). Pub. L. 100-198, Sec. 8(b)(1), inserted 
``(except as provided in section 1804(c)(2) of this title)'' after ``by 
the veteran''.
    Subsec. (c)(3). Pub. L. 100-198, Sec. 3(b)(1), amended first 
sentence generally. Prior to amendment, first sentence read as follows: 
``The Administrator's guaranty may not exceed the lesser of 50 per 
centum of the loan amount or the maximum loan guaranty entitlement 
available, not to exceed $20,000.''
    Subsec. (c)(4). Pub. L. 100-198, Sec. 3(b)(2), amended first 
sentence generally. Prior to amendment, first sentence read as follows: 
``The amount of guaranty entitlement available to a veteran under this 
section shall not be more than $20,000, less the amount of any such 
entitlement as may have been used under this section.''
    Subsec. (e)(5). Pub. L. 100-198, Sec. 8(b)(2), inserted before 
semicolon at end ``; except that the requirement of this clause shall 
not apply (A) in the case of a guaranteed loan that is for the purpose 
described in paragraph (1)(F) of subsection (a), or (B) in the case 
described in section 1804(c)(2)''.
    1986--Subsec. (e)(2). Pub. L. 99-576 inserted ``as determined in 
accordance with the regulations prescribed under section 1810(g) of this 
title and'' after ``credit risk''.
    1984--Subsec. (a)(5). Pub. L. 98-223 inserted ``or section 
1810(a)(9)(B)(ii) of this title'' after ``paragraph (1)(G) of this 
subsection'' in two places.
    1982--Pub. L. 97-306, Sec. 406(c)(2)(C), substituted ``Loans to 
purchase manufactured homes and lots'' for ``Loans to purchase mobile 
homes and mobile home lots'' in section catchline.
    Subsec. (a)(1)(A) to (E). Pub. L. 97-306, Sec. 406(c)(2)(A), 
substituted ``manufactured'' for ``mobile'' wherever appearing.
    Subsec. (a)(1)(G). Pub. L. 97-306, Sec. 406(a)(1), added cl. (G).
    Subsec. (a)(2). Pub. L. 97-306, Sec. 406(a)(2), (c)(2)(A), inserted 
``(other than the refinancing under clause (F) of such paragraph of an 
existing loan)'' after ``subsection'' and substituted ``manufactured'' 
for ``mobile''.
    Subsec. (a)(3). Pub. L. 97-306, Sec. 406(a)(3), (c)(2)(A), 
substituted ``(C), (E), or (G)'' for ``(C) or (E)'', and 
``manufactured'' for ``mobile''.
    Subsec. (a)(4)(A)(ii). Pub. L. 97-306, Sec. 406(c)(2)(A), (B), 
substituted ``manufactured'' for ``mobile'', wherever appearing and 
``manufactured-home'' for ``mobile-home'' wherever appearing.
    Subsec. (a)(5). Pub. L. 97-306, Sec. 406(a)(4), added par. (5).
    Subsecs. (b)(1), (c)(1), (d)(1)(B), (C), (D), (e)(3), (4)(A), (B), 
(6), (f), (h) to (k). Pub. L. 97-306, Sec. 406(c)(2)(A), substituted 
``manufactured'' for ``mobile'' wherever appearing.
    Subsec. (l). Pub. L. 97-295 substituted ``October 23, 1970'' for 
``the date of enactment of the Veterans' Housing Act of 1970''.
    Subsec. (m). Pub. L. 97-306, Sec. 406(c)(2)(A), substituted 
``manufactured'' for ``mobile'' wherever appearing.
    1981--Subsec. (a)(1). Pub. L. 97-72, Sec. 303(h), substituted 
``housing loan benefits'' for ``benefits''.
    Subsec. (b)(2). Pub. L. 97-72, Sec. 303(i), substituted ``housing 
loan benefits'' for ``loan guaranty benefits''.
    Subsec. (d)(1). Pub. L. 97-66 increased from 15 years, 32 days to 20 
years, 32 days the allowable maturity of a loan for purchase of a 
single-wide mobile home or a single-wide mobile home and a lot, from 20 
years, 32 days to 23 years, 32 days the allowable maturity of a loan for 
purchase of a double-wide mobile home, and from 20 years, 32 days to 25 
years, 32 days the allowable maturity of a loan for purchase of a 
double-wide mobile home and a lot.
    1980--Subsec. (a)(1)(F). Pub. L. 96-385, Sec. 401(b)(1), added cl. 
(F).
    Subsec. (a)(4). Pub. L. 96-385, Sec. 401(b)(2), added par. (4).
    Subsec. (c)(3), (4). Pub. L. 96-385, Sec. 402(c), substituted 
``$20,000'' for ``$17,500'' once in par. (3) and twice in par. (4).
    1978--Subsec. (a). Pub. L. 95-476, Sec. 107(a), substituted 
provisions that loans to eligible veterans could be guaranteed if such 
loans were for certain approved purposes, that such loans for any 
approved purpose could include an amount determined by the Administrator 
to be appropriate to cover the cost of necessary lot preparation, and 
that any loan under cls. (C) or (E) of par. (1) were to be considered 
one loan, evidenced either by a single instrument or separate 
instruments for the portions of the loan financing the purchase of the 
mobile home and the purchase and preparation of the lot for provision 
that any eligible veteran who had maximum entitlement available for use 
would be eligible for either the mobile home loan guaranty benefit or 
the mobile home lot loan guaranty benefit or both but that use of either 
would preclude use of any home loan guaranty entitlement under any other 
section until the loan guaranteed under this section had been paid in 
full.
    Subsec. (b)(1). Pub. L. 95-476, Sec. 107(a), substituted provision 
that use of benefit entitlement under this section for purchase of a 
mobile home unit would preclude use of any remainder of entitlement for 
purchase of an additional mobile home unit until the first unit had been 
disposed of or destroyed by natural hazard for provision that a loan to 
purchase a mobile home under this section could include amounts to 
finance purchase of lot and necessary preparation of lot.
    Subsec. (b)(2). Pub. L. 95-476, Sec. 107(a), substituted provision 
authorizing Administrator to restore full benefit entitlement to a 
veteran under this chapter when conditions prescribed in section 1802(b) 
of this title had been met for provision authorizing loans to purchase 
and prepare a mobile home lot when veteran already owned such a mobile 
home.
    Subsec. (c)(1). Pub. L. 95-476, Sec. 107(b)(1), struck out 
provisions relating to eligible purposes of mobile home loans under this 
section.
    Subsec. (c)(3). Pub. L. 95-476, Sec. 107(b)(2), substituted 
provision limiting liability of Administrator under loan guaranty to a 
maximum of lesser of 50 per centum of loan amount or maximum loan 
guaranty entitlement available, not to exceed $17,500, for provision 
limiting Administrator's guaranty to a maximum of 50 per centum of loan 
amount.
    Subsec. (c)(4). Pub. L. 95-476, Sec. 107(b)(3), added par. (4).
    Subsec. (d). Pub. L. 95-476, Sec. 107(c), struck out provisions 
establishing maximum loan amounts for guaranteed mobile home loans and 
increased maturity for single-wide mobile home loans and lot-only loans 
from 12 years and 32 days to 15 years and 32 days.
    Subsec. (e)(4). Pub. L. 95-476, Sec. 107(d), substituted provisions 
authorizing Administrator to determine reasonable maximum loan amounts 
for purchase of new or used mobile homes and purchase and preparation of 
mobile home lots for provision requiring, as a condition to guaranty, 
that loans not exceed certain maximum loan amounts for such purchases or 
preparation.
    Subsec. (g). Pub. L. 95-476, Sec. 107(e), redesignated subsec. (h) 
as (g). Former subsec. (g), limiting to a single time the restoration of 
loan guaranty entitlement for any veteran for the purchase of a mobile 
home, was struck out.
    Subsec. (h)(1). Pub. L. 95-476, Sec. 107(e), (f), redesignated 
subsec. (i) as (h)(1) and struck out provision authorizing the 
Administrator to inspect the mobile home manufacturing process 
periodically as well as on-site inspections of existing mobile home 
units to assure compliance with certain standards of planning, 
construction, and general acceptability. Former subsec. (h) redesignated 
(g).
    Subsec. (h)(2). Pub. L. 95-476, Sec. 107(f), added par. (2).
    Subsec. (i). Pub. L. 95-476, Sec. 107(e), (g)(1), redesignated 
subsec. (j) as (i) and substituted ``subsection (h)'' for ``subsection 
(i)''. Former subsec. (i) redesignated (h).
    Subsec. (j). Pub. L. 95-476, Sec. 107(e), (g)(1), redesignated 
subsec. (k) as (j) and substituted ``subsection (h)'' for ``subsection 
(i)''. Former subsec. (j) redesignated (i).
    Subsec. (k). Pub. L. 95-476, Sec. 107(e), redesignated subsec. (l) 
as (k). Former subsec. (k) redesignated (j).
    Subsec. (l). Pub. L. 95-476, Sec. 107(e), (g), redesignated subsec. 
(m) as (l) and substituted ``subsection (h)'' and ``subsection (i)'' for 
``subsection (i)'' and ``subsection (j)'', respectively. Former subsec. 
(l) redesignated (k).
    Subsecs. (m), (n). Pub. L. 95-476, Sec. 107(e), redesignated subsec. 
(n) as (m). Former subsec. (m) redesignated (l).
    1976--Subsec. (c)(1). Pub. L. 94-324, Sec. 7(20), substituted ``the 
Administrator determines'' for ``he determines''.
    Subsec. (c)(3). Pub. L. 94-324, Secs. 5, 7(20), increased amount of 
Administrator's guaranty from 30 per centum of the loan to 50 per centum 
of the loan and substituted ``the Administrator'' for ``he'' wherever 
appearing.
    Subsec. (d)(1). Pub. L. 94-324, Sec. 7(21), substituted ``the 
Administrator's'' for ``his''.
    Subsec. (d)(3). Pub. L. 94-324, Sec. 7(21), substituted ``the 
Administrator shall'' for ``he shall''.
    Subsec. (e)(4). Pub. L. 94-324, Sec. 7(22), substituted 
``subsection'' for ``subparagraph''.
    Subsec. (e)(5). Pub. L. 94-324, Sec. 7(22), substituted ``the 
veteran will'' for ``he will'' and ``the veteran's'' for ``his''.
    Subsec. (f). Pub. L. 94-324, Sec. 7(23), substituted ``the 
Administrator determines'' for ``he determines''.
    Subsec. (h). Pub. L. 94-324, Sec. 7(23), substituted ``the 
Administrator determines'' for ``he determines'' in two places and ``the 
Administrator has'' for ``he has''.
    Subsec. (k). Pub. L. 94-324, Sec. 7(23), substituted ``the 
manufacturer's obligations'' for ``his obligations''.
    Subsec. (l). Pub. L. 94-324, Sec. 7(23), substituted ``the 
Administrator determines'' for ``he determines''.
    1974--Subsec. (a). Pub. L. 93-569, Sec. 5(1), inserted ``or the 
mobile home lot loan guaranty benefit, or both,'' after ``loan guaranty 
benefit'' wherever appearing, and struck out ``mobile home'' before 
``loan guaranteed under this section''.
    Subsec. (b)(1). Pub. L. 93-569, Sec. 5(2), designated existing 
provisions as subsec. (b)(1) and redesignated cls. (1) and (2) as (A) 
and (B), respectively.
    Subsec. (b)(2). Pub. L. 93-569, Sec. 5(2), added par. (2).
    Subsec. (c)(1). Pub. L. 93-569, Sec. 5(3), (4), redesignated cls. 
(1) and (2) as (A) and (B), respectively, and in cl. (A) as so 
redesignated, inserted provision relating to purchase of a lot on which 
to place a mobile home previously purchased by the veteran, whether or 
not such mobile home was purchased with a loan guaranteed, insured or 
made by another Federal agency, and substituted ``or for the purchase of 
a used mobile home which meets or exceeds minimum requirements for 
construction, design, and general acceptability prescribed by the 
Administrator,'' for ``or for the purchase of a used mobile home which 
is the security for a prior loan guaranteed or made under this section 
or for a loan guaranteed, insured or made by another Federal agency.''
    Subsec. (d)(1). Pub. L. 93-569, Sec. 5(5), substituted ``, whether 
or not the mobile home was financed with assistance under this section, 
and in the case of necessary site preparation, the loan amount for such 
purposes may not exceed the reasonable value of such lot'' for 
``financed through the assistance of this section and in the case of 
necessary site preparation, the loan amount shall not be increased by an 
amount in excess of the reasonable value of such lot''.
    Subsec. (d)(2)(A). Pub. L. 93-569, Sec. 5(6), substituted 
``$12,500'' for ``$10,000,'' and ``single wide mobile home only'' for 
``mobile home only,''.
    Subsec. (d)(2)(B). Pub. L. 93-569, Sec. 5(6), increased from $15,000 
to $20,000, and from fifteen years and thirty-two days to twenty years 
and thirty-two days the amount and period of the loan, struck out the 
$10,000 maximum allowable amount for the mobile home, and restricted the 
amount of the loan to the purchase of a double-wide mobile home instead 
of a mobile home and undeveloped lot.
    Subsec. (d)(2)(C). Pub. L. 93-569, Sec. 5(6), substituted 
``$20,000'' for ``$17,500,'' ``$12,500'' for ``$10,000,'' ``single-wide 
mobile home'' for ``mobile home'' and ``an undeveloped lot'' for ``a 
suitably developed lot,'' and inserted provision including such amount 
as is appropriate to cover cost of site preparation.
    Subsec. (d)(2)(D) to (H). Pub. L. 93-569, Sec. 5(6), added subpars. 
(D) to (H).
    Subsec. (e)(3). Pub. L. 93-569, Sec. 5(7), inserted ``purchased with 
the proceeds of the loan and on'' after ``mobile home''.
    Subsec. (f). Pub. L. 93-569, Sec. 5(8), inserted ``and mobile home 
lot loans'' after ``loans''.
    Subsec. (i). Pub. L. 93-569, Sec. 5(9), inserted provision 
prohibiting the guarantee of a loan for the purchase of a lot on which 
to place a mobile home unless the lot meets prescribed standards.
    Subsec. (n). Pub. L. 93-569, Sec. 5(10), inserted ``and mobile home 
lot loans'' after ``mobile home loans''.
    Subsec. (o). Pub. L. 93-569, Sec. 5(11), struck out subsec. (o) 
which prohibited the making or guaranteeing of loans on and after July 
1, 1975, except upon prior commitment.


                    Effective Date of 1990 Amendment

    Section 8031(b) of Pub. L. 101-508 provided that: ``The amendment 
made by this section [amending this section] shall apply to claims filed 
with the Secretary of Veterans Affairs on or after the date of the 
enactment of this Act [Nov. 5, 1990].''


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-253 applicable to loans closed on or after 
Feb. 1, 1988, except for loans for which guaranty commitment was made on 
or before Dec. 31, 1987, see section 3(c) of Pub. L. 100-253, set out as 
a note under section 3703 of this title.


                    Effective Date of 1987 Amendment

    Amendment by section 3(b) 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.
    Amendment by section 7(b) of Pub. L. 100-198 applicable to loans 
made more than 30 days after Dec. 21, 1987, see section 7(d) of Pub. L. 
100-198, set out as a note under section 3710 of this title.
    Amendment by section 8(b) 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 1981 Amendments

    Amendment by Pub. L. 97-72 effective at end of 180-day period 
beginning on Nov. 3, 1981, see section 305 of Pub. L. 97-72, set out as 
an Effective Date note under section 3741 of this title.
    Amendment by Pub. L. 97-66 effective Oct. 17, 1981, see section 
701(b)(1) of Pub. L 97-66, set out as a note under section 1114 of this 
title.


                    Effective Date of 1980 Amendment

    Amendment by sections 401(b) and 402(c) 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 Pub. L. 95-476 effective Oct. 1, 1978, see section 
108(a) of Pub. L. 95-476, set out as a note under section 3702 of this 
title.


                    Effective Date of 1976 Amendment

    Amendment by sections 5 and 7(20)-(23) of Pub. L. 94-324 effective 
July 1, 1976, and June 30, 1976, respectively, see section 9(a), (b) 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, see section 10 
of Pub. L. 93-569, set out as a note under section 3702 of this title.


                             Effective Date

    Section 8 of Pub. L. 91-506 provided that: ``Section 5 of this Act 
[enacting this section] shall become effective sixty days following the 
date of enactment [Oct. 23, 1970].''

                  Section Referred to in Other Sections

    This section is referred to in sections 3701, 3703, 3704, 3710, 
3711, 3729, 3762 of this title.
