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Title 38Chapter IPart 36Subpart B → §36.4355

Title 38: Pensions, Bonuses, and Veterans' Relief
Subpart B—Guaranty or Insurance of Loans to Veterans With Electronic Reporting

§36.4355   Loans, first, second, or unsecured.

Loans for the purchase of real property or a leasehold estate as limited in the regulations concerning guaranty or insurance of loans to veterans, or for the alteration, improvement, or repair thereof, and for more than $1,500 and more than 40 percent of the reasonable value of such property or estate prior thereto shall be secured by a first lien on the property or estate. Loans for such alteration, improvement, or repairs for more than $1,500 but 40 percent or less of the prior reasonable value of the property shall be secured by a lien reasonable and customary in the community for the type of alteration, improvement, or repair financed. Those for $1,500 or less need not be secured, and in lieu of the title examination the lender may accept a statement from the borrower that he or she has an interest in the property not less than that prescribed in §36.4854(a).

(Authority: 38 U.S.C. 3703(c)(1))

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