38 CFR § 36.4355 - Loans, first, second, or unsecured.

---
identifier: "/us/cfr/t38/s36.4355"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "38 CFR § 36.4355 - Loans, first, second, or unsecured."
title_number: 38
title_name: "Pensions, Bonuses, and Veterans' Relief"
section_number: "36.4355"
section_name: "Loans, first, second, or unsecured."
chapter_name: "DEPARTMENT OF VETERANS AFFAIRS"
part_number: "36"
part_name: "LOAN GUARANTY"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "38 U.S.C. 501 and 3720."
cfr_part: "36"
---


# 36.4355 Loans, first, second, or unsecured.

Loans for the purchase of real property or a leasehold estate as limited in the regulations concerning guaranty or insurance of loans to veterans, or for the alteration, improvement, or repair thereof, and for more than $1,500 and more than 40 percent of the reasonable value of such property or estate prior thereto shall be secured by a first lien on the property or estate. Loans for such alteration, improvement, or repairs for more than $1,500 but 40 percent or less of the prior reasonable value of the property shall be secured by a lien reasonable and customary in the community for the type of alteration, improvement, or repair financed. Those for $1,500 or less need not be secured, and in lieu of the title examination the lender may accept a statement from the borrower that he or she has an interest in the property not less than that prescribed in § 36.4354(a).

(Authority: 38 U.S.C. 3703(c)(1))

[73 FR 6310, Feb. 1, 2008. Redesignated at 75 FR 33705, June 15, 2010, as amended at 80 FR 34319, June 16, 2015]