40 Tex. Admin. Code § 177.8 - Qualifying Homes
(a) The home the
veteran wishes to purchase must meet all requirements established by the
participating lending institution to whom the veteran has made
application.
(b) In addition to
other qualification requirements, the home must be occupied by the veteran
within 60 days of closing and must be maintained as the veteran's principal
residence for three consecutive years from date of purchase, except as
hereinafter provided. The administrator and the participating lending
institution servicing the veteran's loan will verify that the three years
residency requirement is satisfied and report any violation to the board. In
the event of a violation, the board may increase the interest rate on its loan
to a higher rate or may accelerate all principal and interest on its loan. The
board may, in its discretion, adopt any other remedy it deems
appropriate.
(c) The board's loan
must be a new mortgage; no refinancing shall be permissible under the program.
The home does not have to be of new construction.
(d) In addition to any requirements or
specifications placed on the type and quality of home by the participating
lending institution, the home must be on a permanent foundation that is part of
the real estate. "HUD-code manufactured homes," as defined by Texas Civil
Statutes, Article 5221f, §3, are eligible under the program if they meet
FNMA or FHLMC guidelines; however, "mobile homes," as defined by Texas Civil
Statutes, Article 5221f, §3, are not eligible. Any other type of home will
be considered on a case by case basis by the administrator under guidelines
approved by the board.
(e) The home
in which a veteran actually resides may be eligible for a home improvement loan
(as such loans are commonly defined in the real estate lending industry) if the
home and the veteran meet the qualification requirements established by the
board for a home improvement loan. The board will adopt guidelines setting
forth the requirements for obtaining a home improvement loan through the
program, whether FHA Title I or other. The guidelines will be provided to all
participating lending institutions.
Notes
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