Show Veterans J News J Permissible discounts on GI homes loans ranging from 2 j 2 to 5 S points according to localIty locality local local- ity and amount of down payment have been announced by Veterans Administration I VA control control of discount rates on guaranteed Gl-guaranteed home loans Is directed In the recently enacted Housing Act of 1957 The new controls will apply to all GI OJ homes for lor which appraisal requests are received by VA on and after August August Aug Aug- 5 1957 V VA said discounts cannot be charged to a veteran buying a ahome ahome ahome home under VA guaranty but must be absorbed by the builder under the GI OJ Bill Dill No allowance for lor the discount rate paM pall by the I builder will be made by VA In appraising GI OJ homes the agency I said However In accordance with the new law VA said it will limit the fees lees and other charges charRes pay payable payable payable able by the builder In obtaining construction financing Both builders and lenders willbe will willbe willbe be required to certify they have not and will not impose any charges fees lees or discounts in excess excess excess ex ex- ex- ex cess of those permitted by the agency VA said Two allowable discount scales I have been set up by VA dependIng depending depend depend- ing on the veterans veteran's down dawn payment payment payment pay pay- ment In Colorado New Mexico Utah and Wyoming the allowable allowable allowable allow allow- able discount rate is 5 5 points If II the veterans veteran's down payment is less than 10 per cent If the down payment is 10 per cent or more the allowable discount rate is 5 points Minimum down payment permitted permitted permitted per per- by VA is 2 per cent and the maximum interest rate Is 4 44 per cent Discount rates for lor individual states territories possessions and the District of Columbia may be changed from Irom time to time VA said Other highlights of VAs VA's disCount discount discount dis dis- dis- dis count control reg regulations are 1 To get interim conventional construction financing builders may pay 6 per per percent cent interest interests a service charge of 2 2 per per per- cent nt and certain technical and miscellaneous miscellaneous mis mis- expenses 2 Builders may pay a II commitment com corn fee lee of 1 per cent of the GI OJ loan to the lender making a aloan aloan aloan loan to the veteran or to the Investor investor investor in in- vestor who agrees to buy the loan from Irom the originating lender 3 VA will not authorize builders build build- ers to pay service fees lees or charges for lor standby or warehousing agreements in the excess of the allowable discounts 4 The seller of a used home may pay the allowable discount and commitment fee lee |