| (a) After reviewing the appraisal, and any other relevant information, the board shall issue a commitment showing the amount it will invest in the land selected. The veteran and seller shall be notified of the commitment amount in writing. The board shall not invest more than the least of the following options: (1) 95% of the appraised value of the land; (2) 95% of the final agreed purchase price; or (3) the maximum loan amount as set by the Board by resolution from time to time, as prescribed by law. (b) Except for certain Forfeited Land Sales, the board requires the veteran to have at least a five percent ( 5.0%) equity investment in the land. The equity investment is the difference between the commitment amount and the purchase price. The amount of equity required shall be the combination of the initial payment and the down payment(s), as applicable. (c) If the commitment amount is less than 95% of the purchase price, one of the following should be done: (1) The veteran may pay to the board the difference between the purchase price and the commitment amount; (2) The parties may amend the purchase price, with the veteran paying to the board the difference between the amended price and the commitment amount; (3) The parties may amend the contract to increase the acreage to make up for the difference in value compared to price; or The veteran may cancel the loan application and purchase contract. (d) In certain cases, special circumstances may require special loan conditions in the commitment terms. The following are two examples, but others may apply: (1) If improvements on the land are considered by the board in determining the commitment amount, their value may be amortized over their lifetime as determined by the appraiser; and (2) If the land is situated in an underground irrigation water area, the installments may be accelerated for the purpose of protecting the board's investment against the risk of any diminishment of the water reserve. (e) Notwithstanding anything to the contrary in these rules, the chairman may establish procedures so that any required initial payment, down payment, or difference money may be paid to the closing agent at closing. (f) If for any reason a veteran's application is not processed to completion, the down payment will be refunded to the veteran, together with the unused portion of any fees that have been paid by the applicant. (g) Each application will be considered as a wholly separate transaction, independent of any other agreement, transaction or contingency. The board will not consider an application which contains a provision making it contingent upon the success or completion of another agreement or transaction, except as provided for in §175.54(b)(1) of this chapter. |
| Source Note: The provisions of this §175.6 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective May 14, 2002, 27 TexReg 4173; amended to be effective November 23, 2003, 28 TexReg 10253 |
