Restoration of Entitlement

Expanded Automatic Processing.  Previously the law provided that only supervised lenders (those subject to State or Federal supervision and examination, such as savings and loan associations, banks and insurance companies), could make VA loans without prior VA approval.  Public Law 93-569 authorized VA to extend the automatic processing privilege to non-supervised lenders which meet standards prescribed by VA.

Condominiums.  The new Act authorized VA to approve condominium projects for guaranteed loans without the previous stipulation that HUD must have, prior to VA guaranty of any loan in such a project, insured at least one loan in the project.  This feature was also expected to generate new business of substantial volume.

Increases -- Specially Adapted Housing Grant and Guaranty.  The Specially Adapted Housing Grant (made to assist severely disabled veteran in constructing or modifying their home) was increased from $17,500 to $25,000.  The maximum guaranty for conventionally  constructed housing was raised to $17,500.  These changes were made in recognition of the increasing costs of housing.

Manufactured Homes.  The Act removed the July 1, 1975 expiration date for VA's manufactured home program and authorized the following increased loan maximums:  $12,500 for single-wide manufactured homes, $20,000 for double-wide units (maximum for double-wide and undeveloped lot was $27,500).

The loan maturity for double-wide homes was set at 20 years.  Under the Act VA received authority to guarantee loans for the purchase of used manufactured homes which meet VA requirements for construction, design, general acceptability and safety.  VA may now guarantee loans for the purchase of manufactured home lots in those cases where veterans already own manufactured homes.  These loans may include the cost of making necessary site preparations.

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