SECTION 175.52. Borrower's Eligibility and Number of Loans

(a) The Board shall be the final authority in defining and interpreting all eligibility requirements, and whether a prospective borrower has actually satisfied those requirements. The Board may by resolution prescribe the procedures and forms to be used in mortgage loan transactions.

(b) A person is eligible to apply for a loan under the provisions of this subchapter if he or she satisfies the requirements of §175.2(c), relating to Loan Eligibility Requirements.

(c) A person may only have one loan at a time as a veteran. However, once that loan is paid in full he or she may apply for an additional loan as a veteran. The foregoing notwithstanding, an individual who is currently participating in the program as a veteran may assume a loan, or take an assignment of a contract of sale as a non-veteran and may bid on a tract or tracts at a forfeited land sale as a non-veteran.

(d) Notwithstanding anything to the contrary in this chapter, a purchaser under an executory Veterans Land Board Contract of Sale and Purchase may refinance the obligation represented by the Contract of Sale and Purchase by substituting a purchase money Veterans Land Board mortgage loan. No additional funds may be advanced except for expenses incident to the transaction, as provided in Tex. Nat. Res. Code §161.508(b). The chairman may establish procedures, documents, and policies to accomplish transactions authorized by this section. To the maximum extent possible, the substitute loans must retain the terms of the original Contracts of Sale and Purchase and must comply with the requirements for new Veterans Land Board mortgage loans. All liens securing the substitute loans relate back to the date of the original Contracts of Sale and Purchase.

Source Note: The provisions of this §175.52 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective April 20, 2003, 28 TexReg 3068