Page:United States Statutes at Large Volume 94 Part 2.djvu/254

 94 STAT. 1532

PUBLIC LAW 96-385—OCT. 7, 1980 TITLE IV—VETERANS' ADMINISTRATION HOME-LOAN PROGRAM AMENDMENTS REFINANCING OF VETERANS ADMINISTRATION HOME LOANS

38 USC 1810.

38 USC 1803.

Loan guarantee.

38 USC 1802.

Surviving spouse.

38 USC 1819.

SEC. 401. (a) Section 1810 is amended— (1) by inserting after clause (7) of subsection (a) the following new clause: "(8) To refinance in accordance with subsection (e) of this section an existing loan guaranteed, insured, or made under this chapter."; and (2) by adding at the end the following new subsection: "(e)(1) For a loan to be guaranteed for the purpose specified in subsection (a)(8) of this section— "(A) the interest rate of the loan must be less than the interest rate of the loan being refinanced; "(B) the loan must be secured by the same dwelling or farm residence as was the loan being refinanced and such dwelling or residence must be owned and occupied by the veteran as such veteran's home; "(C) 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 1803(c)(3)(A) of this title) as may be authorized by the Administrator, under regulations which the Administrator shall prescribe, to be included in such loan; "(D) the amount of the guaranty of the loan may not exceed the original guaranty amount of the loan being refinanced; and (E) the term of the loan may not exceed the original term of the loan being refinanced. "(2) A loan to a veteran may be guaranteed by the Veterans' Administration 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 1802(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.", (b) Section 1819(a) is amended— (1) by adding at the end of paragraph (1) the following new clause: "(F) To refinance in accordance with paragraph (4) of this subsection an existing loan guaranteed, insured, or made under this section."; and (2) by adding at the end the following new paragraph: "(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 mobile home or mobile-home lot, or mobile home and mobile-home lot, as was the loan being refinanced and such mobile home (or a mobile home

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