[58 STAT. PUBLIC LAWS--CH. 268 -JUNE 22, 1944 PURCHASE OR CONSTRUCTION OF HOMES Appllationforguar- SEC. 501. (a) Any application made by a veteran under this title nty requiremets. for the guaranty of a loan to be used in purchasing residential prop- erty or in constructing a dwelling on unimproved property owned by him to be occupied as his home may be approved by the Adminis- trator of Veterans' Affairs if he finds- Use of proceeds in (1) that the proceeds of such loans will be used for payment paymentforproperty. for such property to be purchased or constructed by the veteran; Termsin proportiofn (2) that the contemplated terms of payment required in any ncome mortgage to be given in part payment of the purchase price or the construction cost bear a proper relation to the veteran's Nature and condi- present and anticipated income and expenses; and that the nature and condition of the property is such as to be suitable for dwelling purposes; and Reasonable price. (3) that the purchase price paid or to be paid by the veteran for such property or the construction cost, including the value of the unimproved lot, does not exceed the reasonable normal value thereof as determined by proper appraisal. ppication for re (b) Any application for the guaranty of a loan under this section for the purpose of making repairs, alterations, or improvements in, or paying delinquent indebtedness, taxes, or special assessments on, residential property owned by the veteran and used by him as his home, maybe approved by the Administrator if he finds that the proceeds of such loan will be used for such purpose or purposes. Insurance under (C) No first mortgage shall be ineligible for insurance under the NationalHousingAct. 48 tat. 124. National Housing Act, as amended, by reason of any loan guaran- 12 U.S. c. §1701; Supp. n, § 1702 teed under this title, or by reason of any secondary lien upon the dPos p. 48 property involved securing such loan. PURCHASE OF FARMS AND FARM EQUIPMENT Applicationforguar- anty, requirements. Use for farming operations. Likelihood of suce Reasonable price. Applicationforguar- Mnty. requirements. SEC. 502. Any application made under this title for the guaranty of a loan to be used in purchasing any land, buildings, livestock, equipment, machinery, or implements, or in repairing, altering, or improving any buildings or equipment, to be used in farming opera- tions conducted by the applicant, may be approved by the Adminis- trator of Veterans' Affairs if he finds- (1) that the proceeds of such loan will be used in payment for real or personal property purchased or to be purchased by the veteran, or for repairing, altering, or improving any buildings or equipment, to be used in bona fide farming operations conducted by him; (2) that such property will be useful in and reasonably neces- sary for efficiently conducting such operations; (3) that the ability and experience of the veteran, and the nature of the proposed farming operations to be conducted by him, are such that there is a reasonable likelihood that such operations will be successful; and (4) that the purchase price paid or to be paid by the veteran for such property does not exceed the reasonable normal value thereof as determined by proper appraisal. PURCHASE OF BUSINESS PROPERTY SEO. 503. Any application made under this title for the guaranty of a loan to be used in purchasing any business, land, buildings, sup- plies, equipment, machinery, or tools, to be used by the applicant in 292
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