§3729. Loan fee

(a)(1) Except as provided in subsection (c) of this section, a fee shall be collected from each veteran obtaining a housing loan guaranteed, insured, or made under this chapter, and from each person obtaining a loan under section 3733(a) of this title, and no such loan may be guaranteed, insured, or made under this chapter until the fee payable under this section has been remitted to the Secretary.

(2) Except as provided in paragraphs (4) and (5) of this subsection, the amount of such fee shall be 1.25 percent of the total loan amount, except that-

(A) in the case of a loan made under section 3711 of this title or for any purpose specified in section 3712 (other than section 3712(a)(1)(F)) of this title, the amount of such fee shall be one percent of the total loan amount;

(B) in the case of a guaranteed or insured loan for a purchase (except for a purchase referred to in section 3712(a) of this title), or for construction, with respect to which the veteran has made a downpayment of 5 percent or more, but less than 10 percent, of the total purchase price or construction cost, the amount of such fee shall be 0.75 percent of the total loan amount;

(C) in the case of a guaranteed or insured loan for a purchase (except for a purchase referred to in section 3712(a) of this title), or for construction, with respect to which the veteran has made a downpayment of 10 percent or more of the total purchase price or construction cost, the amount of such fee shall be 0.50 percent of the total loan amount;

(D) in the case of a loan made to, or guaranteed or insured on behalf of, a veteran described in section 3701(b)(5) of this title under this chapter, the amount of such fee shall be-

(i) two percent of the total loan amount;

(ii) in the case of a loan for any purpose specified in section 3712 of this title, one percent of such amount; or

(iii) in the case of a loan for a purchase (other than a purchase referred to in section 3712 of this title) or for construction with respect to which the veteran has made a downpayment of 5 percent or more of the total purchase price or construction cost-

(I) 1.50 percent of the total loan amount if such downpayment is less than 10 percent of such price or cost; or

(II) 1.25 percent of the total loan amount if such downpayment is 10 percent or more of such price or cost;

(E) in the case of a loan guaranteed under section 3710(a)(8), 3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or 3762(h) of this title, the amount of such fee shall be 0.5 percent of the total loan amount; and

(F) in the case of a loan made under section 3733(a) of this title, the amount of such fee shall be 2.25 percent of the total loan amount.

(3) The amount of the fee to be collected under paragraph (1) of this subsection may be included in the loan and paid from the proceeds thereof.

(4)(A) With respect to a loan closed during the period specified in subparagraph (B) for which a fee is collected under paragraph (1), the amount of such fee, as computed under paragraph (2), shall be increased by 0.75 percent of the total loan amount other than in the case of a loan described in subparagraph (A), (D)(ii), (E), or (F) of paragraph (2).

(B) The specified period for purposes of subparagraph (A) is the period beginning on October 1, 1993, and ending on September 30, 2002, except that in the case of a loan described in subparagraph (D) of paragraph (2), such period ends on September 30, 2003.

(5)(A) Except as provided in subparagraph (B) of this paragraph, notwithstanding paragraphs (2) and (4) of this subsection, after a veteran has obtained an initial loan pursuant to section 3710 of this title, the amount of such fee with respect to any additional loan obtained under this chapter by such veteran shall be 3 percent of the total loan amount.

(B) Subparagraph (A) of this paragraph does not apply with respect to (i) a loan obtained by a veteran with a downpayment described in paragraph (2)(B), (2)(C), or (2)(D)(iii) of this subsection, and (ii) loans described in paragraph (2)(E) of this subsection.

(C) This paragraph applies with respect to a loan closed after September 30, 1993, and before October 1, 2002.

(b) Except as provided in subsection (c) of this section, a fee shall be collected from a person assuming a loan to which section 3714 of this title applies. The amount of the fee shall be equal to 0.50 percent of the balance of the loan on the date of the transfer of the property.

(c) 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.

(Added Pub. L. 97–253, title IV, §406(a)(1), Sept. 8, 1982, 96 Stat. 805 , §1829; amended Pub. L. 98–369, div. B, title V, §2511(a), July 18, 1984, 98 Stat. 1117 ; Pub. L. 100–198, §§2, 10(c), Dec. 21, 1987, 101 Stat. 1315 , 1323; Pub. L. 100–203, title VII, §7002, Dec. 22, 1987, 101 Stat. 1330–279 ; Pub. L. 100–322, title IV, §415(c)(6), May 20, 1988, 102 Stat. 551 ; Pub. L. 101–237, title III, §§303(a), 313(b)(1), Dec. 18, 1989, 103 Stat. 2071 , 2077; Pub. L. 101–239, title V, §5001, Dec. 19, 1989, 103 Stat. 2136 ; Pub. L. 101–508, title VIII, §8032, Nov. 5, 1990, 104 Stat. 1388–348 ; Pub. L. 102–54, §15(a)(3), (4), June 13, 1991, 105 Stat. 289 ; renumbered §3729 and amended Pub. L. 102–83, §5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406 ; Pub. L. 102–547, §§2(b)(1), 5, Oct. 28, 1992, 106 Stat. 3633 , 3636; Pub. L. 103–66, title XII, §12007, Aug. 10, 1993, 107 Stat. 414 ; Pub. L. 103–446, title IX, §904(c), Nov. 2, 1994, 108 Stat. 4677 ; Pub. L. 104–275, title II, §202(b), Oct. 9, 1996, 110 Stat. 3330 ; Pub. L. 105–33, title VIII, §§8012, 8032, Aug. 5, 1997, 111 Stat. 664 , 669; Pub. L. 105–368, title VI, §§602(e)(1)(D), 603(b), Nov. 11, 1998, 112 Stat. 3346 , 3348.)

Amendments

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 September 30, 1993, and before October 1, 2002,", and added subpar. (B).

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 "October 1, 2002" for "October 1, 1998" and "(E), or (F)" for "or (E)".

Subsec. (a)(5)(C). Pub. L. 105–33, §8012(2), substituted "October 1, 2002" for "October 1, 1998".

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 November 1, 1990, and ending on September 30, 1991, each amount specified in paragraph (2) of this subsection shall be increased by 0.625 percent of the total loan amount."

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 September 30, 1990.

"(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 "September 30, 1990" for "September 30, 1989".

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 "September 30, 1989" for "September 30, 1987".

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 "September 30, 1987" for "September 30, 1985". Former subsec. (c), which related to deposit of fees collected under this section into Treasury as miscellaneous receipts, was struck out.

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–368 effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as a note under section 2106 of this title.

Effective Date of 1989 Amendment

Section 303(b) of Pub. L. 101–237 provided that: "The amendments made by this section [amending this section] shall take effect on January 1, 1990."

Effective Date of 1984 Amendment

Section 2511(c) of Pub. L. 98–369 provided that:

"(1) The amendments made by subsection (a)(1) [amending this section] shall apply with respect to loans closed after the end of the 30-day period beginning on the date of the enactment of this Act [July 18, 1984].

"(2) The amendments made by subsections (a)(2) and (b) [amending this section and section 1824 [now 3724] of this title] shall apply with respect to loans closed on or after the date of the enactment of this Act [July 18, 1984].

"(3) The amendment made by subsection (a)(3) [amending this section] shall take effect on the date of the enactment of this Act [July 18, 1984]."

Effective Date

Section 406(b) of Pub. L. 97–253, as amended by Pub. L. 102–83, §5(c)(2), Aug. 6, 1991, 105 Stat. 406 , provided that: "Section 1829 [now 3729] of title 38, United States Code, as added by subsection (a), shall apply only to loans closed after September 30, 1982."

Ratification of Actions by Secretary of Veterans Affairs and by Secretary of the Treasury Between Oct. 1, 1990, and June 13, 1991

Section 15(b) of Pub. L. 102–54, as amended by Pub. L. 102–83, §5(c)(2), Aug. 6, 1991, 105 Stat. 406 , provided that:

"(1) Any action of the Secretary of Veterans Affairs or the Secretary of the Treasury-

"(A) that was taken during the period beginning on October 1, 1990, and ending on the date of the enactment of this Act [June 13, 1991]; and

"(B) that would have been an action carried out under section 3725(c)(3) [formerly 1825(c)(3)] of title 38, United States Code, if the amendment made by paragraph (2) of subsection (a) of this section had been made before October 1, 1990,

is hereby ratified.

"(2) Any failure to act by the Secretary of Veterans Affairs or the Secretary of the Treasury during such period under section 3729(a)(3) [formerly 1829(a)(3)] of such title is hereby ratified."

Ratification of Actions of Secretary of Veterans Affairs During Transition Periods

For provisions ratifying any actions of the Secretary of Veterans Affairs in carrying out this section during the period beginning Dec. 1, 1989, and ending Dec. 18, 1989, see section 604 of Pub. L. 101–237, set out as a note under section 1720B of this title.

For provisions ratifying any actions of the Secretary of Veterans Affairs in carrying out this section during the period beginning Oct. 1, 1989, and ending Oct. 6, 1989, see section 3(b) of Pub. L. 101–110, set out as a note under section 1720B of this title.

Rule for Construction of Duplicate Provisions

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.

Extension of Time for Collection of Fees

Section 303(c) of Pub. L. 101–237 directed Secretary of Veterans Affairs to collect fees under this section through Dec. 31, 1989.

Pub. L. 101–110, §2, Oct. 6, 1989, 103 Stat. 682 , authorized collection of fees under this section with respect to loans closed before Dec. 1, 1989.

Pub. L. 100–136, §1(b), Oct. 16, 1987, 101 Stat. 813 , authorized collection of fees under this section with respect to loans closed through Nov. 15, 1987.

Home Loan Origination Fee

Pub. L. 99–576, title IV, §409, Oct. 28, 1986, 100 Stat. 3283 , provided that: "It is the sense of the Congress that the Veterans' Administration loan origination fee should not be increased above its present level of one percent of the amount of the loan guaranteed."

Section Referred to in Other Sections

This section is referred to in sections 3703, 3722, 3734, 3735 of this title.