40 Tex. Admin. Code § 177.12 - Assumptions
(a) A loan under this program may be assumed
after obtaining approval of the board and the participating lending institution
in writing and by complying with the following requirements.
(1) The original veteran borrower must have
occupied the home as a principal residence for at least three years from the
date of purchase.
(2) All mature
interest, principal, and taxes must have been paid.
(3) The party wishing to assume the loan must
meet the qualification requirements of the participating lending
institution.
(4) The assumption
agreement must be on forms approved by the administrator and the board and must
be executed by the chairman of the board.
(b) The board may in its discretion waive the
requirement that the original veteran occupy the home as a principal residence
for three consecutive years if it deems a waiver to be in the best interests of
the program or upon receiving and approving evidence of one of the following
circumstances:
(1) death of the veteran
purchaser;
(2) bankruptcy of the
veteran purchaser;
(3) financial
incapacity of the veteran purchaser; or
(4) forced sale of the home due to:
(A) divorce and property
settlement;
(B) move required by
change in the employment of the veteran or veteran's spouse;
(C) condemnation of the property through no
fault of the veteran.
(c) The board may prescribe any forms or
methods by which the required evidence shall be submitted to the board. If the
veteran shall attempt to violate the three-year limitation on assignments, the
board may accelerate all principal and interest on the loan. The board, in its
discretion, may adopt any other remedy it deems appropriate. The participating
lending institution and the administrator shall monitor to the extent
practically possible each loan during its first three years to determine if a
violation of the three-year limitation on assumptions or residence
occurs.
(d) The veteran shall not
make any other attempt to sell, convey, rent, or lease the property purchased
under this program except in the manner prescribed in these rules and the
Natural Resources Code, Chapter 162. Any attempt to sell, assign, transfer,
convey, rent, or lease the property purchased under this program without the
express written approval of the board shall be deemed a violation of these
rules and the Veterans Housing Assistance Act and will be subject to the
provisions of the Natural Resources Code, §
162.016(d).
Notes
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