West Virginia Code 31-18C-17 – Terms and conditions of loans from veterans’ mortgage fund
No loans shall be made or acquired by the Housing Development Fund except loans to veterans who meet reasonable criteria of creditworthiness as defined by the Housing Development Fund and in accordance with the following terms and conditions, among other terms and conditions which the Housing Development Fund shall require that:
Terms Used In West Virginia Code 31-18C-17
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Housing development fund: means the West Virginia Housing Development Fund created and established under article eighteen, chapter . See West Virginia Code 31-18C-3
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Loan: means a veterans'. See West Virginia Code 31-18C-3
- Program: means the veterans'. See West Virginia Code 31-18C-3
- Residential dwelling: means a single-family residence located in the state, in which a veteran intends to reside as his or her principal residence. See West Virginia Code 31-18C-3
- State: means the State of West Virginia. See West Virginia Code 31-18C-3
- Veteran: means a person who served in the active military, naval or air service, and who was discharged or released therefrom under conditions other than dishonorable. See West Virginia Code 31-18C-3
(a) No loan shall be made unless an affidavit shall be executed by the veteran establishing his eligibility and submitted to the Housing Development Fund together with evidence of his or her eligible status;
(b) The proceeds of all loans shall be used only for financing the purchase of residential dwellings by veterans;
(c) All loans shall be repaid in full over a term not to exceed thirty years plus a reasonable construction period in the case of a construction loan, and at a rate of interest determined by the Housing Development Fund, which may set the interest rate to provide a margin over the rate paid on the bonds issued under this article. The difference between the interest rate on the loans and the interest rate on such bonds may be used in whole or in part to defray the expense of administering the program;
(d) The principal amount of each loan shall be limited to the appraised value of the residential dwelling;
(e) Each loan shall be evidenced by a negotiable promissory note executed and delivered by the veteran and shall be secured by a first lien deed of trust upon the residential dwelling financed by the proceeds of the loan, subject only to such exceptions as shall be acceptable to the Housing Development Fund; and
(f) All notes and deeds of trust accepted as security for loans under this article shall be payable to the order of and for the use and benefit of the state.
The Housing Development Fund is hereby empowered and authorized to propose and promulgate such rules and regulations as it determines are necessary or desirable in the administration of the program, including procedural, interpretive, legislative and emergency rules.