Veterans Housing_Manufactured Home Loans
Published on AidPage by
IDILOGIC on Jun 24, 2005
Purpose of this program:
To assist veterans, servicepersons, and certain unmarried surviving spouses of veterans in obtaining credit for the purchase of a manufactured home on more liberal terms than are available to non-veterans.
Possible uses and use restrictions...
VA may guarantee a lender against loss on a loan made to an eligible applicant to buy a new or used manufactured home and/or to buy or improve a lot for placement of a manufactured home, or to refinance an existing VA guaranteed or insured loan previously obtained on the same manufactured home and/or lot which the veteran or the veteran's surviving spouse (if such surviving spouse was an obligor under such existing loan) owns and occupies, to obtain a lower rate of interest; or to refinance an existing manufactured home loan to acquire a lot on which such manufactured home is or will be placed. Restrictions on guaranteed VA manufactured home loans are: (a) the terms of repayment must bear a proper relationship to applicant's present and anticipated income and expenses and the applicant must be a satisfactory credit risk; (b) the applicant must certify that he or she intends to occupy the property as his or her home; previous occupancy is acceptable for loans to refinance existing VA-guaranteed loans to a lower interest rate; (c) the manufactured home must contain living facilities for year round occupancy; (d) used manufactured homes must meet construction and acceptability standards. There are limitations on the term of a loan, depending on the purpose. The maximum term is 20 years and 32 days for a single-wide manufactured home or a combination single-wide manufactured home and lot, 23 years and 32 days for a double-wide manufactured home, 25 years and 32 days for a double-wide unit and lot, and 15 years and 32 days for a lot only on which a manufactured home already owned by the applicant will be placed. The loan amount may not exceed an amount equal to 95 percent of the purchase price of the property securing the loan.
Who is eligible to apply...
(a) Veterans who served on active duty on or after September 16, 1940, and were discharged or released under conditions other than dishonorable. Veterans who served any time during World War II, the Korean Conflict, the Vietnam-era, or the Persian Gulf War must have served on active duty 90 days or more; veterans with peacetime service only must have served a minimum of 181 days continuous active duty. All veterans separated from enlisted service which began after September 7, 1980, or service as an officer which began after October 16, 1981, must also have served at least 24 months of continuous active duty or the full period for which the person was called or ordered to active duty. Veterans of such recent service may qualify with less service time if they have a compensable service- connected disability or were discharged after at least 181 days (90 days during Persian Gulf War) under the authority of 10 U.S.C. 1171 or 1173; (b) any veteran in the above classes with less service but discharged with a service-connected disability; (c) individuals may also be eligible if they were released from active duty to an involuntary reduction in force, certain medical conditions, or in some instances, for the convenience of the Government; (d) unmarried surviving spouses of otherwise eligible veterans who died in service or whose deaths were attributable to service-connected disabilities; (e) service personnel who have served at least 181 days on continuous active duty status (90 days until the ending date for the Persian Gulf War has been set); (f) the spouse of any member of the Armed Forces serving on active duty who is listed as missing in action, or as a prisoner of war, and has been so listed for a total of more than 90 days; (g) members of the Selected Reserve who are not otherwise eligible for home loan benefits and who have completed a total of six (6) years in the Selected Reserves, followed by an honorable discharge, placement on the retired list, or continued service. Individuals who completed less than 6 years may be eligible if discharged for a service connected disability. Eligibility for Selected Reservists expires September 30, 2009. Applicants must have sufficient present and prospective income to meet loan repayment terms and have a satisfactory credit record.
Credentials/Documentation
Evidence of the veteran's service or certificate of eligibility for loan benefits issued by the Department of Veterans Affairs. Loan applications submitted by lenders must be accompanied by verification of income of the applicant and a credit report.
Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.
About this section:
This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy.
For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree,
3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible.
Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they
must satisfy.
Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications
are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs,
the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.
How to apply...
Application Procedure:
Eligible veterans should: (a) obtain a Certificate of Eligibility from the appropriate VA regional office, (b) present it with the housing proposal to a private lender willing to make the loan. Application for guaranty is made by the lender to VA regional office or center having jurisdiction over the locality in which the manufactured home is to be placed.
Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.
Award Procedure:
The processing VA office will issue the lender evidence of its guaranty after requirements are met and proceeds are disbursed.
Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check.
Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office,
or by an authorized county office. The assistance may pass through the initial applicant for further distribution by
intermediate level applicants to groups or individuals in the private sector.
Deadlines and process...
Deadlines
None.
Note:
When available, this section indicates the deadlines for applications to the funding agency which will
be stated in terms of the date(s) or between what dates the application should be received.
When not available, applicants should contact the funding agency for deadline information.
Range of Approval/Disapproval Time
From 1 to 5 days after receipt of loan application in VA.
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Note:
This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units
prior to the submission of a formal application to the federal funding agency.
Appeals
Denial of eligibility is appealable through Board of Veterans' Appeals. In the event of a denial, claimants are advised of appeal rights and procedures at the time of notification.
Note:
In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission
of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or
applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).
Renewals
None.
Note:
In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.
Who can benefit...
Veterans, servicepersons, and certain unmarried surviving spouses of veterans.
Beneficiaries
About this section:
This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.
What types of assistance...
Guaranteed/Insured Loans
Programs in which the Federal government makes an arrangement to identify a lender against part or all of any defaults by those responsible for repayment of loans.
How much financial aid...
Range and Average of Financial Assistance
The guaranty is $20,000 or 40 percent, whichever is less. The average loan amount is $29,596.
Note:
This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.
Obligations
(Guaranteed Loans) FY 03 $0; FY 04 est $0; and FY 05 est $0.
Note:
The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.
Account Identification
36-4129-0-3-704.
Note:
Note: This 11-digit budget account identification code represents the account which funds a particular program.
This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.
Examples of funded projects...
Not applicable.
About this section
This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.
Program accomplishments...
In fiscal year 2003, no manufactured home loans were guaranteed. In fiscal years 2004 and 2005, no loans are expected.
Criteria for selecting proposals...
Not applicable.
Assistance considerations...
Length and Time Phasing of Assistance
Not applicable.
Formula and Matching Requirements
The guaranty is $20,000 or 40 percent, whichever is less.
Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.
Post assistance requirements...
Reports
As a condition of continued guaranty coverage, the holder of the loan must notify the guaranteeing VA office of the borrower's default on installment payments or other contract terms, and of any substantive changes in the terms of the contract or the guaranty. Reporting time limitations are specified in VA regulations.
Note:
This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.
Audits
VA has the right to audit loan accounting records until expiration of the guaranty.
Note:
This section discusses audits required by the Federal agency.
The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133.
These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year,
as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period,
rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).
Records
Until VA ceases to be liable as the guarantor of a loan, the lender or loan holder must maintain adequate records on the amount and dates of payments received and disbursements made on guaranteed loans.
Note:
This section indicates the record retention requirements and the type of records the Federal agency may require.
Not included are the normally imposed requirements of the General Accounting Office.
For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C.
For other programs, record retention is governed by the funding agency's requirements.
Regulations...
Authorization
38 U.S.C. 3712.
Note:
This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
Regulations, Guidelines, And Literature
38 CFR 36.4200; VA Pamphlet 26-71-1, "Questions and Answers on Manufactured Home Loans to Veterans."