Veterans' Home Loan Program Emergency Amendments of 1988
PL 100-253 (S.2022), enacted 02/29/1988

102 STAT. 20 
PUBLIC LAW 100-253—FEB. 29, 1988 
Public Law 100-253 
100th Congress 
An Act 
Feb. 29, 1988 
[S. 2022] 
Veterans' Home 
Loan Program 
Emergency 
Amendments of 
1988 
38 u s e 101 note. 
To amend title 38, United States Code, to authorize reductions under certain circum-
stances in the downpayments required for loans made by the Veterans' Adminis-
tration to finance the sales of properties acquired by the Veterans' Administration 
as the result of foreclosures and to clarify the calculation of available guaranty 
entitlement and make other technical and conforming amendments. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
'Veterans' Home Loan Program 
SECTION 1. SHORT TITLE. 
This Act may be cited as the 
Emergency Amendments of 1988". 
SEC. 2. DOWNPAYMENT REQUIREMENTS FOR VENDEE LOANS. 
Section 1816(d)(4)(B) of title 38, United States Code (as amended by 
section 6(b)(1) of Public Law 100-198), is amended— 
(1) by inserting "(i)" after "(B)"; and 
(2) by adding at the end the following new division: 
"(ii) A loan described in subparagraph (A) of this paragraph may, 
to the extent the Administrator determines to be necessary in order 
to market competitively the property involved, exceed 95 percent of 
the purchase price.". 
SEC. 3. AMOUNT OF GUARANTY ENTITLEMENT. 
(a) CONVENTIONAL HOUSING.—Section 1803(a)(1) of title 38, United 
States Code (as amended by section 3(a)(1) of Public Law 100-
198) is amended to read as follows: 
"(a)(lXA) Any loan to a veteran eligible for benefits under this 
chapter, if made for any of the purposes specified in section 1810 of 
this title and in compliance with the provisions of this chapter, is 
automatically guaranteed by the United States in an amount not to 
exceed the lesser of— 
"(iXD in the case of any loan of not more than $45,000, 50 
percent of the loan; or 
"(II) in the case of any loan of more than $45,000, the lesser of 
$36,000 or 40 percent of the loan, except that the amount of 
such guaranty for any such loan shall not be less than $22,500; 
or 
"(ii) the maximum amount of guaranty entitlement available 
to the veteran. 
"(B) The maximum amount of guaranty entitlement available to a 
veteran under section 181iLof^this chapter shall be $36,000 reduced 
by the amount of entitlement previously used by the veteran under 
this chapter and not restored as a result of the exclusion in section 
1802(b) of this title.". 
(b) MANUFACTURED HOUSING.—Section 1819(c) of such title (as 
amended by section 3(b) of Public Law 100-198) is amended— 
(1) in paragraph (3), by amending the first sentence to read as 
follows: "The Administrator's guaranty may not exceed the 
PUBLIC LAW 100-253—FEB. 29, 1988 
102 STAT. 21 
lesser of (A) the lesser of $20,000 or 40 percent of the loan, or (B) 
the maximum amount of guaranty entitlement available to the 
veteran."; 
(2) in paragraph (4), by amending the first sentence to read as 
follows: "The maximum amount of guaranty entitlement avail-
able to a veteran under this section shall be $20,000 reduced by 
the amount of any such entitlement previously used by the 
veteran."; and 
(3) by adding at the end the following new paragraph: 
"(5) The amount of any loan guaranteed under this section shall 
not exceed an amount equal to 95 percent of the purchase price of 
the property securing the loan.". 
(c) EFFECTIVE DATES.—The amendments made by this section shall 38 USC 1803 
apply to loans which are closed on or after February 1, 1988, except note, 
that they shall not apply to any loan for which a guaranty commit-
ment is made on or before December 31,1987. 
Approved February 29, 1988. 
LEGISLATIVE HISTORY—S. 2022: 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Feb. 1, considered and passed Senate. 
Feb. 17, considered and passed House.