Approval of the Loan
(1)The veteran applicant must meet the current industry standards determined by the Department to be applicable to the proposed loan. Applicable industry standards may include, but are not limited to:
(a)Local lending practices;
(b)FannieMae and other lending organization standards; and
(c)Federal and state legal requirements.
(2)The veteran applicant may be required to have equity in the property.
(3)Secondary financing may be permitted.
(4)Construction shall meet the minimum standards set by federal, state or local laws.
(5)A performance bond may be required for new construction.
(6)Inspections to prove the premises safe, sanitary and structurally sound may be required, and the loan may be refused if the construction is inferior.
(7)The security shall be served by adequate means of legal and physical access and shall have an acceptable potable water supply.
(8)The Director may approve a loan for the following purposes:
(a)Acquisition of a home;
(b)To refinance a construction, rehabilitation, or bridge loan within 24 months of the date of the loan; or
(c)To refinance a loan serving as a form of temporary financing that is permitted under federal tax law and acceptable to the Director.
Rule 274-045-0080 — Approval of the Loan,