74
PUBLIC LAW 85-364-APR. 1, 1958
12 USC 1720.
12 USC 1716.
58 Stat. 294. 38 USC 693 note.
64 Stat. 75. 38 USC 694/.
[72
ST A T.
SEC. 4. Section 305 of the National Housing Act is amended by adding at the end thereof a new subsection as follows: " (g) With a view to further carrying out the purposes set forth in section 301(b), and notwithstanding any other provision of this Act, the Association is authorized to make commitments to purchase and to purchase, service, or sell any mortgages which are insured under title II of this Act or guaranteed under the Servicemen's Keadjustment Act of 1944, if the original principal obligation thereof does not exceed $13,500: Provided, That the total amount of purchases and commitments authorized by this subsection shall not exceed $1,000,000,000 outstanding at any one time: Provided further, That applicants for such commitments shall be required to certify that construction of the housing to be covered by the mortgages has not commenced." SEC. 5. (a) Section 512 of the Servicemen's Eeadjustment Act of 1944 (38 U.S.C. sec. 694 (1)) is amended to read as follows: 'DIRECT LOANS TO VETERANS
39 USC 694a.
Housing c r e d i t shortage area.
Lietu Liquidation.
Requirements.
39 USC 694a. 50 Stat. 42 note;
Stat. 522; 63 413. u s e 1441 7 USC 1000.
"SEC. 512. (a) The Congress finds that housing credit under section 501 of this title is not and has not been generally available to veterans living in rural areas, or in small cities and towns not near large metropolitan areas. I t is therefore the purpose of this section to provide housing credit for veterans living in such rural areas and such small cities and towns. "(b) Whenever the Administrator finds that private capital is not generally available in any rural area or small city or town for the financing of loans guaranteed under section 501 of this title, he shall designate such rural area or small city or town as a 'housing credit shortage area', and shall makej or enter into commitments to make, loans for any or all of the following purposes in such area— " (1) For the purchase or construction of a dwelling to be owned and occupied by a veteran as his home; "(2) For the purchase of a farm on which there is a farm residence to be owned and occupied by a veteran as his home; "(3) For the construction on land owned by a veteran of a farm residence to be occupied by him as his home; or "(4) For the repair, alteration, or improvement of a farm residence or other dwelling owned by a veteran and occupied by him as his home. If there is an indebtedness which is secured by a lien against land owned by a veteran, the proceeds of a loan made under this section for the construction of a dwelling or farm residence on such land may be expended also to liquidate such lien, but only if the reasonable value of the land is equal to or in excess of the amount of the lien. "(c) No loan may be made under this section to a veteran unless he shows to the satisfaction of the Administrator that— " (1) he is a satisfactory credit risk; "(2) the payments to be required under the proposed loan bear a proper relation to his present and anticipated income and expenses; "(3) he is unable to obtain from a private lender in such housing credit shortage area, at an interest rate not in excess of the rate authorized for guaranteed home loans, a loan for such purpose for which he is qualified under section 501 of this title; and "(4) he is unable to obtain a loan for such purpose from the Secretary of Agriculture under the Bankhead-Jones F a r m Tenant Act or under the Housing Act of 1949.
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