| (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.
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| Source Note: The provisions of this §177.8 adopted to be effective May 4, 1984, 9 TexReg 2263; amended to be effective August 28, 1985, 10 TexReg 3090; amended to be effective November 29, 1991, 16 TexReg 6649.
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