VETERANS HOUSING LOAN PROGRAM
45.30(1)(1)
Legislative findings. It is determined that veterans, who have sacrificed in the service of their country valuable years of their lives and considerable earning potential, constitute a readily identifiable and particularly deserving segment of this state's population. It is further determined that by making additional housing funds available to eligible veterans, limited private home loan funds will be more readily available to all. It is further determined that the loan programs established under this subchapter are special purpose credit programs for an economically disadvantaged class of persons for the purposes of
15 USC 1691-1691f.
45.30(2)
(2) Legislative intent. This subchapter is created principally to enable the state and the authority to exercise their borrowing power to increase those funds available for loans providing for the purchase or construction of private housing, without requiring down payments beyond the reach of families of modest means. It is the intent of the legislature that the department in its administration of this subchapter avoid the duplication of those administrative services available through private lending institutions, utilizing the administrative services of such institutions to the maximum extent consistent with the purposes of this subchapter.
45.30 History
History: 2005 a. 22.
45.31
45.31
Definitions. In this subchapter:
45.31(1)
(1) "Anticipated annual shelter payment" means the total annual payments anticipated for the following, as determined by the department or authorized lender on the basis of the loan applied for under
s. 45.37:
45.31(1)(a)
(a) Real estate taxes on the premises to be mortgaged.
45.31(1)(c)
(c) Required payments on principal and interest on all mortgages placed or to be placed against the home of an eligible person.
45.31(2)
(2) "Authority" means the Wisconsin Housing and Economic Development Authority.
45.31(4)(d)
(d) Other costs authorized by the department.
45.31(5)
(5) "Eligible person" means any person eligible under
s. 45.33 (1) and not disqualified under
s. 45.33 (2) to receive a loan under this subchapter.
45.31(7)
(7) "Funds" include cash on hand and liquid investments owned by the veteran and his or her spouse, individually or jointly, unless the veteran and spouse are legally separated under
s. 767.07 [
s. 767.35 (1)].
45.31 Note
NOTE: The correct cross-reference is shown in brackets. Corrective legislation is pending.
45.31(8)
(8) "Guaranteed loan" means a loan guaranteed by the U.S. department of veterans affairs under
38 USC 1801 to
1827.
45.31(9)
(9) "Home" means a building or portion of a building used by the veteran as a residence, and includes condominiums and income-producing property, a portion of which is used as a principal place of residence by the veteran, and the land, including existing improvements, appertaining to the building.
45.31(10)
(10) "Income" means the sum of the federal adjusted gross income plus any income received that may reasonably be expected to be regular and dependable.
45.31(11)
(11) "Insurer" means any insurer authorized to do business in this state.
45.31(12)
(12) "Manufactured home" means a structure, as defined by the Federal Home Loan Mortgage Corporation, which meets or exceeds the statutory size under
s. 348.07 (2).
45.31(13)
(13) "Monthly payment" means all of the following:
45.31(13)(a)
(a) Required payments on principal and interest.
45.31(13)(c)
(c) One-twelfth of annual real estate taxes on the mortgaged property.
45.31(15)
(15) "Qualified veterans' mortgage bonds" means federally tax-exempt bonds issued under the authority of
26 USC 143.
45.31 History
History: 2005 a. 22,
25.
45.31 Cross-reference
Cross Reference: See also ch.
VA 4, Wis. adm. code.
45.32
45.32
Powers of the department. With respect to loans made by and mortgages and mortgage notes executed or properties mortgaged to the department or to authorized lenders under this subchapter, the department may do any of the following:
45.32(1)
(1) Execute necessary instruments.
45.32(2)
(2) Collect interest and principal.
45.32(3)
(3) Compromise indebtedness due on mortgage notes.
45.32(5)
(5) Exercise the rights of a mortgagee, generally including the right to do any of the following:
45.32(5)(a)
(a) Acquire or take possession of the mortgaged property and in so doing the department may accept voluntary surrender and conveyance of title to the property in full satisfaction of a mortgage debt or may bid for and purchase the property at a sheriff's sale or replevin the property.
45.32(5)(b)
(b) Commit itself to execute and execute subordination agreements, partial releases, and other necessary instruments.
45.32(5)(c)
(c) Set up and follow procedures to assure proper disbursement of the proceeds of insurance checks, share drafts, or other drafts covering damages sustained on mortgaged properties.
45.32(5)(d)
(d) Pay the principal and interest on any obligations incurred in connection with the mortgages on the property including real estate taxes, insurance premiums, attorney fees, and obligations created as a result of its exercise of powers vested in it under this subchapter.
45.32(5)(e)
(e) Exercise any other powers as may be necessary for the efficient administration of this subchapter.
45.32(6)
(6) In contracts entered into under
s. 45.37 (5) (a) 1., empower authorized lenders to exercise any of the powers vested in the department under this subchapter.
45.32(7)
(7) Manage, operate, lease, exchange, sell, and otherwise convey real property.
45.32(8)
(8) Grant easements in any real property the department acquires.
45.32(9)
(9) Upon application by the mortgagor and agreement in writing executed by the parties:
45.32(9)(a)
(a) Extend the time in which the obligation under a mortgage note or any part of the obligation must be paid.
45.32(9)(b)
(b) Reduce the amounts of monthly installments and provide other terms and conditions relative to time and manner of repaying the obligation as it deems necessary or reasonable.
45.32 History
History: 2005 a. 22.
45.33
45.33
Eligibility and disqualifying factors. 45.33(1)
(1)
Eligible persons. Subject to
sub. (2) (a) or
(b), the following persons may receive a loan under this subchapter:
45.33(1)(b)
(b) A person who served on active duty for more than 6 months during the period between February 1, 1955, and August 4, 1964, and was honorably discharged.
45.33(1)(c)
(c) The unremarried surviving spouse or dependent child, as defined in
s. 45.01 (6) (b), of a deceased veteran or of a deceased person described in
par. (b).
45.33(1)(d)
(d) Any person who has completed 6 continuous years of service under honorable conditions in the army or air national guard or in any reserve component of the U.S. armed forces, and who is living in this state at the time of his or her application for benefits.
45.33(2)(a)(a) A person listed in
sub. (1) may not receive a loan under this subchapter if the department or authorized lender determines that any of the following applies:
45.33(2)(a)1.
1. The person will be incurring an excessive indebtedness in view of the person's income.
45.33(2)(a)2.
2. The person has a previous loan outstanding under this subchapter, unless any of the following applies:
45.33(2)(a)2.a.
a. The previous loan has been assumed by an eligible person with the department's approval upon the sale of the residence securing the previous loan.
45.33(2)(b)
(b) A person listed in
sub. (1) who is not a permanently and totally disabled veteran may not receive a loan under this subchapter if the department or authorized lender determines that any of the following applies:
45.33(2)(b)1.
1. The person is delinquent in child support or maintenance payments or owes past support, medical expenses, or birth expenses, as evidenced by the appearance of the person's name on the statewide support lien docket under
s. 49.854 (2) (b), unless the person provides the department or authorized lender with one of the following:
45.33(2)(b)1.a.
a. A repayment agreement that the person has entered into, that has been accepted by the county child support agency under
s. 59.53 (5) and that has been kept current for the 6-month period immediately preceding the date of the application.
45.33(2)(b)1.b.
b. A statement that the person is not delinquent in child support or maintenance payments and does not owe past support, medical expenses, or birth expenses, signed by the department of workforce development or its designee within 7 working days before the date of the application.
45.33(2)(b)2.
2. The amount of the loan exceeds 2.5 times the median price of a home in this state. The department shall establish the median price of a home in this state for each fiscal year by using the most recent housing price index generated by the Wisconsin Realtors Association before July 1.
45.33 History
History: 2005 a. 22,
25,
253.
45.34
45.34
Uses for loan proceeds. 45.34(1)
(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:
45.34(1)(a)1.
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.
45.34(1)(b)
(b) The construction of a home, including housing accommodation and garage, and the acquisition of land therefor.
45.34(1)(c)
(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.
45.34(1)(d)
(d) Refinancing the balance due on an indebtedness that was incurred for a use designated in
pars. (a) to
(c).
45.34(2)(a)(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.
45.34(2)(b)
(b) The department or authorized lender may require any person applying for a loan under this subchapter to certify that:
45.34(2)(b)1.
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.
45.34(2)(b)2.
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 quit claim deed executed under the judgment does not constitute a sale.
45.34(3)
(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.
45.34 History
History: 2005 a. 22,
25.
45.35
45.35
Contribution. No loan may be made under this subchapter unless, in addition to the closing costs that the person may be required to pay, the person has available, and applies on the total cost of the property for which the loan is made, an amount equivalent to at least 5% of the total cost. The amount may consist of money or other assets, including equity in real property. This section does not apply to a permanently and totally disabled veteran.
45.35 History
History: 2005 a. 22.
45.36
45.36
Manner of repayment.
