Change Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering.

a. Eligibility

A loan for the purchase, construction, repair, alteration, or improvement of a farm residence which is occupied or will be occupied by the veteran as a home is eligible for guaranty. 

The loan cannot cover

·   the nonresidential value of farm land in excess of the homesite

·   the barn, silo, or other outbuildings necessary to the operation of the farm, or

·   farm equipment or livestock.

A portion of the proceeds of a loan to construct a farm residence on encumbered land owned by the veteran may be used to pay off the lien or liens on the land only if the reasonable value of the land is at least equal to the amount of the lien(s).