Section 45.34. Uses for loan proceeds.

 

(1)   Mortgage loan program. An authorized lender may, with the approval of the department, make loans under s. 45.37 for any of the following purposes:

(a) The purchase of one of the following:

1. A manufactured home or real property on which a manufactured home is to be situated, but only if the eligible person has available and applies on the total cost of the property, an amount equivalent to at least 15 percent of the total cost. This 15 percent requirement does not apply to a disabled veteran.

2. A home and eligible rehabilitation of a home, as defined in s. 234.49 (1) (d) .

(b) The construction of a home, including housing accommodation and garage, and the acquisition of land therefor.

(c) A loan to improve a home, including the construction of a garage or the removal or other alteration of existing improvements that were made to improve the accessibility of a home for a permanently and totally disabled individual.

(d) Refinancing the balance due on an indebtedness that was incurred for a use designated in pars. (a) to (c) .

(2)   Conditions.

(a) No loan may be made under this subchapter if the department or authorized lender determines that the total cost of the property exceeds its market value unless the amount by which the cost of the property exceeds its market value is paid by the borrower in addition to the contribution required by s. 45.35 . This paragraph does not apply to a permanently and totally disabled veteran.

(b) The department or authorized lender may require any person applying for a loan under this subchapter to certify that:

1. The property to be purchased, constructed, improved, or refinanced with financial assistance under this subchapter will be used by the person as a residence.

2. Unless other acceleration provisions are permitted under s. 45.36 (2) , the loan made under this subchapter will be repaid in full upon sale of the residence or any of the person's interest in it. A divorce judgment divesting the person's interest in the residence or a quitclaim deed executed under the judgment does not constitute a sale.

(3)   Qualified veterans mortgage bonds. If the source of the funding for a loan under this subchapter is the proceeds of a qualified veterans mortgage bond, the department shall apply any applicable requirements of the Internal Revenue Code in determining a person's eligibility for a loan to assure that the bonds are exempt from federal tax.

2005 a. 22 , 25 ; 2011 a. 260 .