Source: https://www.law.cornell.edu/cfr/text/38/36.4310
Timestamp: 2017-05-26 09:29:11
Document Index: 798792222

Matched Legal Cases: ['art 36', '§ 36', '§ 36', '§ 36', '§ 501', '§ 3701', '§ 3702', '§ 3703', '§ 3704', '§ 3707', '§ 3710', '§ 3711', '§ 3712', '§ 3713', '§ 3714', '§ 3715', '§ 3719', '§ 3720', '§ 3729']

38 CFR 36.4310 - Amortization. | US Law | LII / Legal Information Institute
CFR › Title 38 › Chapter I › Part 36 › Subpart B › Section 36.4310 38 CFR 36.4310 - Amortization.
§ 36.4310 Amortization.
(a) All loans, the maturity date of which is beyond 5 years from date of loan or date of assumption by the veteran, shall be amortized. Except as provided in paragraph (e) of this section, the schedule of payments thereon shall be in accordance with any generally recognized plan of amortization requiring approximately equal periodic payments and shall require a principal reduction not less often than annually during the life of the loan. The final installment on any loan shall not be in excess of two times the average of the preceding installments, except that on a construction loan such installment may be for an amount not in excess of 5 percent of the original principal amount of the loan. The limitations imposed herein on the amount of the final installment shall not apply in the case of any loan extended pursuant to § 36.4315.
(b) Any plan of repayment on loans required to be amortized which does not provide for approximately equal periodic payments shall not be eligible unless the plan conforms with the provisions of paragraph (e) of this section, or is otherwise approved by the Secretary.
(c) Every guaranteed or insured loan shall be repayable within the estimated economic life of the property securing the loan.
(d) Subject to paragraph (a) of this section, any amounts which under the terms of a loan do not become due and payable on or before the last maturity date permissible for loans of its class under the limitations contained in 38 U.S.C. chapter 37 shall automatically fall due on such date. See § 36.4337.
(e) A graduated payment mortgage loan, providing for deferrals of interest during the first 5 years of the loan and addition of the deferred amounts to principal shall be eligible, Provided:
(1) The loan is for the purpose of acquiring a single-family dwelling unit, including a condominium unit or simultaneously acquiring and improving a previously occupied, existing single-family dwelling unit.
(i) For proposed construction or existing homes not previously occupied (new homes), the maximum loan amount cannot exceed 97.5 percent of the lesser of the reasonable value of the property as of the time the loan is made or the purchase price.
(ii) For previously occupied, existing homes the maximum loan amount must be computed to assure that the principal amount of the loan, including all interest scheduled to be deferred and added to the loan principal, will not exceed the purchase price or reasonable value of the property, whichever is less, as of the time the loan is made;
(3) The increases in the monthly periodic payment amount occur annually on each of the first five annual anniversary dates of the first loan installment due date, at a rate of 7.5 percent over the preceding year's monthly payment amount;
(4) Beginning with the payment due on the fifth annual anniversary date of the first loan installment due date, all remaining monthly periodic payments are approximately equal in amount and amortize the loan fully in accordance with the requirements of this section, and
(5) The plan is otherwise acceptable to the Secretary.
(Authority: 38 U.S.C. 3703(d))
[ 73 FR 6310, Feb. 1, 2008. Redesignated at 75 FR 33705, June 15, 2010, as amended at 75 FR 65238, Oct. 22, 2010]
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 38 - VETERANS’ BENEFITS§ 501 - Rules and regulations§ 3701 - Definitions§ 3702 - Basic entitlement§ 3703 - Basic provisions relating to loan guaranty and insurance§ 3704 - Restrictions on loans§ 3707 - Adjustable rate mortgages§ 3710 - Purchase or construction of homes§ 3711 - Direct loans to veterans§ 3712 - Loans to purchase manufactured homes and lots§ 3713 - Release from liability under guaranty§ 3714 - Assumptions; release from liability§ 3715 to 3719 - Vacant]§ 3719§ 3720 - Powers of Secretary§ 3729 - Loan fee
Public Laws98-223