United States Code (Last Updated: May 24, 2014) |
Title 38. VETERANS’ BENEFITS |
Part III. READJUSTMENT AND RELATED BENEFITS |
Chapter 37. HOUSING AND SMALL BUSINESS LOANS |
SubChapter III. ADMINISTRATIVE PROVISIONS |
§ 3729. Loan fee
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(a) Requirement of Fee.— (1) Except as provided in subsection (c), a fee shall be collected from each person obtaining a housing loan guaranteed, insured, or made under this chapter, and each person assuming a loan to which section 3714 of this title applies. No such loan may be guaranteed, insured, made, or assumed until the fee payable under this section has been remitted to the Secretary. (2) The fee may be included in the loan and paid from the proceeds thereof. (b) Determination of Fee.— (1) The amount of the fee shall be determined from the loan fee table in paragraph (2). The fee is expressed as a percentage of the total amount of the loan guaranteed, insured, or made, or, in the case of a loan assumption, the unpaid principal balance of the loan on the date of the transfer of the property. (2) The loan fee table referred to in paragraph (1) is as follows: LOAN FEE TABLE
Type of loan
Active duty veteran
Reservist
Other obligor
(A)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed before January 1, 2004)
2.00
2.75
NA
(A)(ii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after January 1, 2004, and before October 1, 2004)
2.20
2.40
NA
(A)(iii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after October 1, 2004, and before October 1, 2017)
2.15
2.40
NA
(A)(iv) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after October 1, 2017)
1.40
1.65
NA
(B)(i) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed before October 1, 2017)
3.30
3.30
NA
(B)(ii) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after October 1, 2017)
1.25
1.25
NA
(C)(i) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed before October 1, 2017)
1.50
1.75
NA
(C)(ii) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed on or after October 1, 2017)
0.75
1.00
NA
(D)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed before October 1, 2017)
1.25
1.50
NA
(D)(ii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed on or after October 1, 2017)
0.50
0.75
NA
(E) Interest rate reduction refinancing loan
0.50
0.50
NA
(F) Direct loan under section 3711
1.00
1.00
NA
(G) Manufactured home loan under section 3712 (other than an interest rate reduction refinancing loan)
1.00
1.00
NA
(H) Loan to Native American veteran under section 3762 (other than an interest rate reduction refinancing loan)
1.25
1.25
NA
(I) Loan assumption under section 3714
0.50
0.50
0.50
(J) Loan under section 3733(a)
2.25
2.25
2.25
(3) Any reference to a section in the “Type of loan” column in the loan fee table in paragraph (2) refers to a section of this title. (4) For the purposes of paragraph (2): (A) The term “active duty veteran” means any veteran eligible for the benefits of this chapter other than a Reservist. (B) The term “Reservist” means a veteran described in section 3701(b)(5)(A) of this title who is eligible under section 3702(a)(2)(E) of this title. (C) The term “other obligor” means a person who is not a veteran, as defined in section 101 of this title or other provision of this chapter. (D) The term “initial loan” means a loan to a veteran guaranteed under section 3710 or made under section 3711 of this title if the veteran has never obtained a loan guaranteed under section 3710 or made under section 3711 of this title. (E) The term “subsequent loan” means a loan to a veteran, other than an interest rate reduction refinancing loan, guaranteed under section 3710 or made under section 3711 of this title if the veteran has previously obtained a loan guaranteed under section 3710 or made under section 3711 of this title. (F) The term “interest rate reduction refinancing loan” means a loan described in section 3710(a)(8), 3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or 3762(h) of this title. (G) The term “0-down” means a downpayment, if any, of less than 5 percent of the total purchase price or construction cost of the dwelling. (H) The term “5-down” means a downpayment of at least 5 percent or more, but less than 10 percent, of the total purchase price or construction cost of the dwelling. (I) The term “10-down” means a downpayment of 10 percent or more of the total purchase price or construction cost of the dwelling. (c) Waiver of Fee.— (1) A fee may not be collected under this section from a veteran who is receiving compensation (or who, but for the receipt of retirement pay or active service pay, would be entitled to receive compensation) or from a surviving spouse of any veteran (including a person who died in the active military, naval, or air service) who died from a service-connected disability. (2) (A) A veteran described in subparagraph (B) shall be treated as receiving compensation for purposes of this subsection as of the date of the rating described in such subparagraph without regard to whether an effective date of the award of compensation is established as of that date. (B) A veteran described in this subparagraph is a veteran who is rated eligible to receive compensation— (i) as the result of a pre-discharge disability examination and rating; or (ii) based on a pre-discharge review of existing medical evidence (including service medical and treatment records) that results in the issuance of a memorandum rating.
Amendments
2012—Subsec. (b)(2). Pub. L. 112–154, § 702(b), substituted “
Subsec. (c)(2). Pub. L. 112–154, § 210, amended par. (2) generally. Prior to amendment, par. (2) read as follows: “A veteran who is rated eligible to receive compensation as a result of a pre-discharge disability examination and rating shall be treated as receiving compensation for purposes of this subsection as of the date on which the veteran is rated eligible to receive compensation as a result of the pre-discharge disability examination and rating without regard to whether an effective date of the award of compensation is established as of that date.”
2011—Subsec. (b)(2). Pub. L. 112–37 substituted “
Subsec. (b)(2)(A)(iii), (iv). Pub. L. 112–56, § 265(a)(1), substituted “
Subsec. (b)(2)(B)(i). Pub. L. 112–56, § 265(a)(2)(A), substituted “
Pub. L. 112–26, § 3(a)(1), substituted “
Subsec. (b)(2)(B)(ii). Pub. L. 112–56, § 265(a)(2)(B)–(D), redesignated cl. (iv) as (ii), substituted “
Pub. L. 112–26, § 3(a)(2), substituted “
Subsec. (b)(2)(B)(iii). Pub. L. 112–56, § 265(a)(2)(B), struck out cl. (iii) which listed loan fees of 2.15 percent in the first two table columns for a subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after
Pub. L. 112–26, § 3(a)(3), substituted “
Subsec. (b)(2)(B)(iv). Pub. L. 112–56, § 265(a)(2)(C), redesignated cl. (iv) as (ii).
Subsec. (b)(2)(C), (D). Pub. L. 112–56, § 265(a)(3), (4), substituted “
2010—Subsec. (c)(1). Pub. L. 111–275 inserted “or active service pay” after “retirement pay”.
2004—Subsec. (c). Pub. L. 108–454 designated existing provisions as par. (1) and added par. (2).
2003—Subsec. (b)(2). Pub. L. 108–183 amended par. (2) generally, revising table by adding cls. (iii) and (iv) of subpars. (A) and (B) and changing dates in subpars. (A) and (B).
2001—Pub. L. 107–14 made technical amendment to Pub. L. 106–419. See 2000 Amendment note below.
Subsec. (b)(2). Pub. L. 107–103, § 405(c), substituted “
Subsec. (b)(4)(B). Pub. L. 107–103, § 406, inserted “who is eligible under section 3702(a)(2)(E) of this title” before period.
2000—Pub. L. 106–419, as amended by Pub. L. 107–14, amended text generally, substituting present provisions for provisions which established loan fee, set fee as 1.25 percent of total loan amount, with exceptions, provided that amount of fee may be included in loan amount and paid from proceeds thereof, provided for increased loan fee percentage for loans closed during specified period, provided for fees on subsequent loans and assumed loans, and provided that fees may not be collected from veterans receiving compensation or from surviving spouses of any veterans who died from service-connected disability.
1998—Subsec. (a)(1). Pub. L. 105–368, § 602(e)(1)(D)(ii), substituted “(c)” for “(c)(1)”.
Subsec. (a)(4). Pub. L. 105–368, § 603(b), designated existing provisions as subpar. (A), substituted “during the period specified in subparagraph (B)” for “after
Subsec. (c). Pub. L. 105–368, § 603(e)(1)(D)(i), struck out “(1)” before “A fee may not” and struck out pars. (2) and (3) which read as follows:
“(2) There shall be credited to the Guaranty and Indemnity Fund (in addition to the amount required to be credited to such Fund under clause (A) or (B) of paragraph (2) of section 3725(c) of this title or paragraph (3) of that section), on behalf of a veteran or surviving spouse described in paragraph (1) of this subsection, an amount equal to the fee that, except for paragraph (1) of this subsection, would be collected from such veteran or surviving spouse.
“(3) Credits to the Guaranty and Indemnity Fund under paragraph (2) of this subsection with respect to loans guaranteed, insured, or made under this chapter that are closed during fiscal year 1990 shall be made in October 1990.”
1997—Subsec. (a)(2)(A). Pub. L. 105–33, § 8032(1)(A), struck out “or 3733(a)” after “section 3711”.
Subsec. (a)(2)(F). Pub. L. 105–33, § 8032(1)(B)–(D), added subpar. (F).
Subsec. (a)(4). Pub. L. 105–33, §§ 8012(1), 8032(2), substituted “
Subsec. (a)(5)(C). Pub. L. 105–33, § 8012(2), substituted “
1996—Subsec. (a)(2)(E). Pub. L. 104–275 substituted “3712(a)(1)(F), or 3762(h)” for “or 3712(a)(1)(F)”.
1994—Subsec. (a)(2)(E). Pub. L. 103–446 inserted “3710(a)(11),” after “3710(a)(9)(B)(i),”.
1993—Subsec. (a)(2). Pub. L. 103–66, § 12007(c), substituted “paragraphs (4) and (5)” for “paragraph (6)” in introductory provisions.
Subsecs. (a)(4) to (6). Pub. L. 103–66, § 12007(a), (b), added pars. (4) and (5) and struck out par. (6) which read as follows: “With respect to each loan closed during the period beginning on
1992—Subsec. (a)(2)(A). Pub. L. 102–547, § 5(1), inserted “(other than section 3712(a)(1)(F))” after “section 3712”.
Subsec. (a)(2)(D). Pub. L. 102–547, § 2(b)(1), added subpar. (D).
Subsec. (a)(2)(E). Pub. L. 102–547, § 5(2), added subpar. (E).
1991—Pub. L. 102–83, § 5(a), renumbered section 1829 of this title as this section.
Subsec. (a)(1). Pub. L. 102–83, § 5(c)(1), substituted “3733(a)” for “1833(a)”.
Subsec. (a)(2). Pub. L. 102–83, § 5(c)(1), substituted “3711 or 3733(a)” for “1811 or 1833(a)” and “3712” for “1812” in subpar. (A) and “3712(a)” for “1812(a)” in subpars. (B) and (C).
Subsec. (a)(3) to (5). Pub. L. 102–54, § 15(a)(3), redesignated par. (5) as (3) and struck out former pars. (3) and (4) which read as follows:
“(3) Except as provided in paragraph (4) of this subsection, there shall be credited to the Guaranty and Indemnity Fund (in addition to the amount required to be credited to such Fund under section 1825(c)(2)(A) or (B) of this title), on behalf of a veteran who has made a downpayment described in paragraph (2)(C) of this subsection, an amount equal to 0.25 percent of the total loan amount for the fiscal year in which the loan is closed and for the following fiscal year.
“(4) Credits to the Guaranty and Indemnity Fund under paragraph (3) of this subsection with respect to loans guaranteed or insured under this chapter that are closed during fiscal year 1990 shall be made in October 1990 and October 1991.”
Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted “3714” for “1814”.
Subsec. (c)(2). Pub. L. 102–83, § 5(c)(1), substituted “3725(c)” for “1825(c)”.
Pub. L. 102–54, § 15(a)(4), substituted “clause (A) or (B) of paragraph (2) of section 1825(c) of this title or paragraph (3) of that section” for “section 1825(c)(2)(A) or (B) of this title and subsection (a)(3) of this section”.
1990—Subsec. (a)(2). Pub. L. 101–508, § 8032(1), substituted “Except as provided in paragraph (6) of this subsection, the amount” for “The amount”.
Subsec. (a)(6). Pub. L. 101–508, § 8032(2), added par. (6).
1989—Pub. L. 101–237, § 303(a), amended section generally. Prior to amendment, section read as follows:
“(a) Except as provided in subsection (b) of this section, a fee shall be collected from each veteran obtaining a housing loan guaranteed, made, or insured under this chapter, and from each person obtaining a loan from the Secretary to finance the purchase of real property from the Secretary, and no such loan may be guaranteed, made, or insured under this chapter until the fee payable with respect to such loan has been remitted to the Secretary. The amount of the fee shall be one percent of the total loan amount. The amount of the fee may be included in the loan and paid from the proceeds thereof.
“(b) A fee may not be collected under this section from a veteran who is receiving compensation (or who but for the receipt of retirement pay would be entitled to receive compensation) or from a surviving spouse of any veteran (including a person who died in the active military, naval, or air service) who died from a service-connected disability.
“(c) A fee may not be collected under this section with respect to any loan closed after
“(d) Except as provided in subsection (b) of this section, a fee shall be collected from a person assuming a loan to which section 1814 of this chapter applies. The amount of the fee shall be equal to one-half of one percent of the balance of such loan on the date of the transfer of the property.”
Subsec. (a). Pub. L. 101–237, § 313(b)(1), substituted “Secretary” for “Administrator” wherever appearing.
Subsec. (c). Pub. L. 101–239 substituted “
1988—Subsec. (d). Pub. L. 100–322 substituted “section 1814” for “section 1817A”.
1987—Subsec. (b). Pub. L. 100–198, § 2(b), substituted “of any veteran (including a person who died in the active military, naval, or air service) who died from a service-connected disability” for “described in section 1801(b)(2) of this title”.
Subsec. (c). Pub. L. 100–198, § 2(a), and Pub. L. 100–203, amended subsec. identically, substituting “
Subsec. (d). Pub. L. 100–198, § 10(c), added subsec. (d).
1984—Subsec. (a). Pub. L. 98–369, § 2511(a)(1), inserted “and from each person obtaining a loan from the Administrator to finance the purchase of real property from the Administrator,” after “under this chapter,”, struck out “one-half of” before “one percent of the total loan amount”, and struck out “to the veteran” after “in the loan”.
Subsecs. (c), (d). Pub. L. 98–367, § 2511(a)(2), (3), redesignated subsec. (d) as (c) and substituted “
Effective Date Of Amendment
Pub. L. 112–56, title II, § 265(b),
Pub. L. 112–26, § 3(b),
Pub. L. 108–183, title IV, § 405,
Pub. L. 107–14, § 8(b),
Amendment by Pub. L. 105–368 effective
Pub. L. 101–237, title III, § 303(b),
Pub. L. 98–369, div. B, title V, § 2511(c),
Effective Date
Pub. L. 97–253, title IV, § 406(b),
Miscellaneous
Pub. L. 109–233, title I, § 101(f),
Pub. L. 107–330, title III, § 307,
Pub. L. 102–54, § 15(b),
For provisions ratifying any actions of the Secretary of Veterans Affairs in carrying out this section during the period beginning
For provisions ratifying any actions of the Secretary of Veterans Affairs in carrying out this section during the period beginning
For rule relating to construction of provisions of Pub. L. 100–203 and Pub. L. 100–198 making duplicate amendments to this section, see section 7004(b) of Pub. L. 100–203, set out as a note under section 3733 of this title.
Pub. L. 101–237, title III, § 303(c),
Pub. L. 101–110, § 2,
Pub. L. 100–136, § 1(b),
Pub. L. 99–576, title IV, § 409,