fha mortgage financing for veterans

fha mortgage financing for veterans Sec. 206. (a) Section 203(b)(2) of the National Housing Act is amended— (1) by striking out “and not to exceed” and inserting in lieu thereof “and (except as provided in the next to the last sentence of this paragraph) not to exceed”; and (2) by adding at the end thereof the following new sentences: “If the mortgagor is a veteran who has not received any direct, guaranteed, or insured loan under laws administered by the Veterans’ Administration for the purchase, construction, or repair of a dwelling (including a farm dwelling) which was to be owned and occupied by him as his home, and the mortgage to be insured under this section covers property upon which there is located a dwelling designed principally for a one-family residence, the principal obligation may be in an amount equal to the sum of (i) 100 per centum of $15,000 of the appraised value of the property as of the date the mortgage is accepted for insurance (ii) 90 per centum of such value in excess of $15,000 but not in excess of $20,000, and (iii) 85 per centum of such value in excess of $20,000. As used herein, the term ‘veteran’ means any person who served on active duty in the armed forces of the United States for a period of not less than ninety days (or is certified by the Secretary of Defense as having performed extra-hazardous service), and who was discharged or released therefrom under conditions other than dishonorable.” (b) Section 203(b)(9) of such Act is amended by inserting after “on account of the property” the following: “(except in a case to which the next to the last sentence of paragraph (2) applies)”.