California Code of Regulations › Title 12 - Military and Veterans Affairs › Division 2 - Department of Veterans Affairs › Chapter 2 - Veterans' Farm and Home Purchases › Subchapter 1 - Eligibility and Qualifications › Section 310.2 - Restrictions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following restrictions apply to the Deferred Principal
					 Payment Program:
(a) Applications for
				  the Department's consent to encumber or improve, or home improvement loans as
				  described in Section
				  341 shall not be granted while a
				  veteran is participating in the Program, unless the encumbrance or improvement
				  is necessary to protect the Department's interest in the property or where the
				  property is participating in a recognized redevelopment program.
(b) Loan term extensions shall not be granted
				  while a veteran is participating in the Program except in cases where the
				  veteran needs the extension to afford staying in the home. Veterans shall
				  submit a letter to the Department requesting an extension. The Department shall
				  review the case and the veteran's current financial status in making the
				  decision to approve or disapprove the extension.
(c) Disability insurance payments shall be
				  limited to the initial amount of the monthly installment under the Program. If
				  the veteran is on disability when the deferment period expires and the
				  Department adjusts the monthly installment to the full principal and interest
				  payment, the additional amount must be paid by the veteran.
(d) Veterans who become married shall not be
				  allowed to remain in the Program if the spouse is employed and the combined
				  monthly incomes are sufficient to meet principal plus interest loan
				  payments.
(e) Loan transfers shall
				  not be permitted while the veteran is participating in the Program.
(f) Occupancy waivers or permission to rent
				  shall not be granted except in those cases where the veteran is in an active
				  military service position which requires the veteran and the veteran's family
				  to temporarily relocate.
(g)
				  Non-veteran spouses to whom the Cal-Vet property is awarded in dissolution of
				  marriage or legal separation proceedings, shall be allowed to continue in the
				  Program so long as they meet the criteria set forth in Section
				  310(a)(1) and
				  (2). However, if the spouse is not qualified
				  for the non-veteran spouse benefit as described in Section
				  987.721
				  of the Military and Veterans Code, then the interest-only payment shall be
				  increased to reflect the non-veteran rate of interest as set forth in Section
				  342(c). The
				  interest rate shall be placed in effect as of the date the property is awarded
				  to the non-veteran spouse.
(h) A
				  subsequent opportunity to purchase another farm or home using Cal-Vet financing
				  shall not be granted while the veteran is participating in the Program. A
				  subsequent opportunity for a loan may be granted under Section
				  987.86
				  of the Military and Veterans Code if the veteran elects to withdraw from the
				  Program or when the five-year term has expired.
(i) Canceled loan contracts shall not be
				  reinstated by the Department unless the amount of delinquency is paid in
				  full.
1. New
					 section filed 11-12-91; operative 12-12-91 (Register 92, No. 7).
Note: Authority cited: Section
						700,
						Military and Veterans Code. Reference: Sections
						987.56,
						987.71,
						987.721
						and
						987.73,
						Military and Veterans Code.