d. Examples of  Restrictions that Require VA Approval

A lender may not accelerate a loan based on the sale of the secured property unless the acceptability of the assumption of the loan has not been established pursuant to Section 3714 of Chapter 37, Title 38, U.S.C., except that

·   Under 38 CFR 36.4308(b), VA may guarantee a loan made through a State, Territorial or local government program where restrictions in the legal instruments require acceleration of the loan if it is assumed by a party ineligible for assistance under the program.

·   Such acceleration must be mandated by Federal, State, Territorial or local law or regulation.

VA may guarantee a loan made through a state or local government program, designed to assist low- or moderate-income individuals, which imposes resale and price restrictions on purchasers. 

Under such a program, if the property is resold within a period established by local law or ordinance, certain restrictions as set forth in 38 CFR 36.4350(b)(5)(iv)(A) on to whom the property may be sold, the resale price, and other restrictions approved by the Secretary may be applied.

VA may guarantee a loan on which a title restriction limits the sale, lease, or occupancy of the dwelling to persons based on age, including a prohibition against the permanent occupancy of the dwelling by children, provided such restriction complies with applicable Federal law. 

VA may refuse to approve a property with an age restriction if its operation would work an undue hardship upon the owner in the case of sudden, unforeseen events or be likely to result in an increased risk of loan default.