US Code

Public Law 119-73 (01/23/2026)

38 U.S.C. § 3702

Basic entitlement

(a)
(1)
The veterans described in paragraph (2) of this subsection are eligible for the housing loan benefits of this chapter. In the case of any veteran who served on active duty during two or more of the periods specified in paragraph (2) for which eligibility for the housing loan benefits under this chapter may be granted, entitlement derived from service during the most recent such period (A) shall cancel any unused entitlement derived from service during any earlier such period, and (B) shall be reduced by the amount by which entitlement from service during any earlier such period has been used to obtain a direct, guaranteed, or insured housing loan—
(i)
on real property which the veteran owns at the time of application; or
(ii)
as to which the Secretary has incurred actual liability or loss, unless in the event of loss or the incurrence and payment of such liability by the Secretary the resulting indebtedness of the veteran to the United States has been paid in full.
(2)
The veterans referred to in the first sentence of paragraph (1) of this subsection are the following:
(A)
Each veteran who served on active duty at any time during World War II, the Korean conflict, or the Vietnam era and whose total service was for 90 days or more.
(B)
Each veteran who after , was discharged or released from a period of active duty for a service-connected disability.
(C)
Each veteran, other than a veteran described in clause (A) or (B) of this paragraph, who—
(i)
served after , for a period of more than 180 days and was discharged or released therefrom under conditions other than dishonorable; or
(ii)
has served more than 180 days in active duty status and continues on active duty without a break therein.
(D)
section 5303A(b) of this title Each veteran who served on active duty for 90 days or more at any time during the Persian Gulf War, other than a veteran ineligible for benefits under this title by reason of .
(E)
section 3701(b)(5) of this title Each veteran described in .
(F)
section 1174(i) of title 10 Each veteran who was discharged or released from a period of active duty of 90 days or more by reason of a sole survivorship discharge (as that term is defined in ).
(G)
section 3701(b)(7) of this title Each individual described in .
(3)
Any unused entitlement of World War II or Korean conflict veterans which expired under provisions of law in effect before , is hereby restored and shall not expire until used.
(4)
section 3701(b) of this title A veteran’s entitlement under this chapter shall not be reduced by any entitlement used by the veteran’s spouse which was based upon the provisions of paragraph (3) of .
(b)
In computing the aggregate amount of guaranty or insurance housing loan entitlement available to a veteran under this chapter, the Secretary may exclude the amount of guaranty or insurance housing loan entitlement used for any guaranteed, insured, or direct loan under the following circumstances:
(1)
(A)
The property which secured the loan has been disposed of by the veteran or has been destroyed by fire or other natural hazard; and
(B)
the loan has been repaid in full, or the Secretary has been released from liability as to the loan, or if the Secretary has suffered a loss on such loan, the loss has been paid in full.
(2)
A veteran-transferee has agreed to assume the outstanding balance on the loan and consented to the use of the veteran-transferee’s entitlement, to the extent that the entitlement of the veteran-transferor had been used originally, in place of the veteran-transferor’s for the guaranteed, insured, or direct loan, and the veteran-transferee otherwise meets the requirements of this chapter.
(3)
(A)
The loan has been repaid in full; and
(B)
the loan for which the veteran seeks to use entitlement under this chapter is secured by the same property which secured the loan referred to in subparagraph (A) of this paragraph.
(4)
In a case not covered by paragraph (1) or (2)—
(A)
the loan has been repaid in full and, if the Secretary has suffered a loss on the loan, the loss has been paid in full; or
(B)
the Secretary has been released from liability as to the loan and, if the Secretary has suffered a loss on the loan, the loss has been paid in full.
The Secretary may, in any case involving circumstances the Secretary deems appropriate, waive one or more of the conditions prescribed in paragraph (1). The authority of the Secretary under this subsection to exclude an amount of guaranty or insurance housing loan entitlement previously used by a veteran may be exercised only once for that veteran under the authority of paragraph (4).
(c)
An honorable discharge shall be deemed to be a certificate of eligibility to apply for a guaranteed loan. Any veteran who does not have a discharge certificate, or who received a discharge other than honorable, may apply to the Secretary for a certificate of eligibility. Upon making a loan guaranteed or insured under this chapter, the lender shall forthwith transmit to the Secretary a report thereon in such detail as the Secretary may, from time to time, prescribe. Where the loan is guaranteed, the Secretary shall provide the lender with a loan guaranty certificate or other evidence of the guaranty. The Secretary shall also endorse on the veteran’s discharge, or eligibility certificate, the amount and type of guaranty used, and the amount, if any, remaining. Nothing in this chapter shall preclude the assignment of any guaranteed loan or the security therefor.
(d)
Housing loans will be automatically guaranteed under this chapter only if made (1) by any Federal land bank, national bank, State bank, private bank, building and loan association, insurance company, credit union, or mortgage and loan company, that is subject to examination and supervision by an agency of the United States or of any State, or (2) by any State, or (3) by any lender approved by the Secretary pursuant to standards established by the Secretary. Any housing loan proposed to be made to a veteran pursuant to this chapter by any lender not of a class specified in the preceding sentence may be guaranteed by the Secretary if the Secretary finds that it is in accord otherwise with the provisions of this chapter.
(e)
The Secretary may at any time upon thirty days’ notice require housing loans to be made by any lender or class of lenders to be submitted to the Secretary for prior approval. No guaranty or insurance liability shall exist with respect to any such loan unless evidence of guaranty or insurance is issued by the Secretary.
(f)
Any housing loan at least 20 percent of which is guaranteed under this chapter may be made by any national bank or Federal savings and loan association, or by any bank, trust company, building and loan association, or insurance company, organized or authorized to do business in the District of Columbia. Any such loan may be so made without regard to the limitations and restrictions of any other law relating to—
(1)
ratio of amount of loan to the value of the property;
(2)
maturity of loan;
(3)
requirement for mortgage or other security;
(4)
dignity of lien; or
(5)
percentage of assets which may be invested in real estate loans.

Pub. L. 85–85772 Stat. 1203Pub. L. 86–73, § 173 Stat. 156Pub. L. 87–84, § 1(b)75 Stat. 201Pub. L. 90–19, § 25(1)81 Stat. 28Pub. L. 90–77, title IV, § 403(a)81 Stat. 190Pub. L. 91–506, § 2(a)84 Stat. 1108Pub. L. 91–584, § 5(b)84 Stat. 1576Pub. L. 93–569, § 2(a)88 Stat. 1863Pub. L. 94–324, § 7(3)90 Stat. 721Pub. L. 95–476, title I, § 10292 Stat. 1497Pub. L. 97–72, title III, § 303(b)95 Stat. 1060Pub. L. 97–295, § 4(61)96 Stat. 1309Pub. L. 98–223, title II, § 20498 Stat. 42Pub. L. 100–322, title IV, § 415(a)(1)102 Stat. 549Pub. L. 101–237, title III103 Stat. 2075Pub. L. 102–25, title III, § 341105 Stat. 92Pub. L. 102–40, title IV, § 402(d)(1)105 Stat. 239Pub. L. 102–83, § 5(a)105 Stat. 406Pub. L. 102–547, § 2(a)(2)106 Stat. 3633Pub. L. 103–446, title IX, § 902108 Stat. 4676Pub. L. 105–368, title VI, § 603(a)112 Stat. 3348Pub. L. 106–117, title VII, § 711113 Stat. 1584Pub. L. 107–103, title IV, § 405(a)115 Stat. 993Pub. L. 108–183, title IV, § 403117 Stat. 2664Pub. L. 110–317, § 6(a)122 Stat. 3528Pub. L. 116–315, title II, § 2101(b)134 Stat. 4981(, , , § 1802; , , ; , , ; , , ; , , ; , , ; , , ; , (b), , ; –(5), , ; , , ; , , ; , , ; , , ; , (2), , , 550; , §§ 310, 313(b)(1), , , 2077; , , ; , , ; renumbered § 3702 and amended , (c)(1), , ; , , ; , title XII, § 1201(f)(4), , , 4687; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 116–3152021—Subsec. (a)(2)(G). added subpar. (G).

Pub. L. 110–3172008—Subsec. (a)(2)(F). added subpar. (F).

Pub. L. 108–1832003—Subsec. (a)(2)(E). substituted “Each” for “For the period beginning on , and ending on , each”.

Pub. L. 107–1032001—Subsec. (a)(2)(E). substituted “” for “”.

Pub. L. 106–1171999—Subsec. (a)(2)(E). substituted “” for “”.

Pub. L. 105–3681998—Subsec. (a)(2)(E). substituted “” for “”.

Pub. L. 103–446, § 1201(f)(4)1994—Subsec. (a)(2)(E). , substituted “For the period beginning on , and ending on ,” for “For the 7-year period beginning on the date of enactment of this subparagraph,”.

Pub. L. 103–446, § 902(1)Subsec. (b). , (6), (7), in introductory provisions, substituted “loan under the following circumstances:” for “loan, if—”, and in concluding provisions, substituted “paragraph (1)” for “clause (1) of the preceding sentence” and inserted at end “The authority of the Secretary under this subsection to exclude an amount of guaranty or insurance housing loan entitlement previously used by a veteran may be exercised only once for that veteran under the authority of paragraph (4).”

Pub. L. 103–446, § 902(2)Subsec. (b)(1). , substituted “The property” for “the property” in subpar. (A) and a period for the semicolon at end of subpar. (B).

Pub. L. 103–446, § 902(3)Subsec. (b)(2). , substituted “A veteran-transferee” for “a veteran-transferee” and a period for “; or” at end.

Pub. L. 103–446, § 902(4)Subsec. (b)(3)(A). , substituted “The loan” for “the loan”.

Pub. L. 103–446, § 902(5)Subsec. (b)(4). , added par. (4).

Pub. L. 102–5471992—Subsec. (a)(2)(E). added subpar. (E).

Pub. L. 102–83, § 5(a)section 1802 of this title1991—, renumbered as this section.

Pub. L. 102–40Subsec. (a)(2)(D). substituted “5303A(b)” for “3103A(b)”.

Pub. L. 102–25 added subpar. (D).

Pub. L. 102–83, § 5(c)(1)Subsec. (a)(4). , substituted “3701(b)” for “1801(b)”.

Pub. L. 101–237, § 313(b)(1)1989—Subsecs. (a)(1)(ii), (b). , substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 101–237, § 310Subsec. (b)(3). , added par. (3).

Pub. L. 101–237, § 313(b)(1)Subsecs. (c) to (e). , substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 100–322, § 415(a)(1)(A)section 1818 of this title1988—Subsec. (a)(1). –(E), designated existing provisions as par. (1), substituted “The veterans described in paragraph (2) of this subsection are eligible for the housing loan benefits of this chapter” for “Each veteran who served on active duty at any time during World War II, the Korean conflict, or the Vietnam era and whose total service was for ninety days or more, or who was discharged or released from a period of active duty, any part of which occurred during World War II, the Korean conflict, or the Vietnam era, for a service-connected disability, shall be eligible for the housing loan benefits of this chapter”, substituted “in paragraph (2)” for “in the preceding sentence, or in ,” and redesignated former cls. (1) and (2) as cls. (A) and (B), respectively, and former cls. (A) and (B) as subcls. (i) and (ii), respectively.

Pub. L. 100–322, § 415(a)(1)(F)Subsec. (a)(2), (3). , added pars. (2) and (3).

Pub. L. 100–322, § 415(a)(2)Subsec. (a)(4). , redesignated subsec. (g) as (a)(4) and substituted “1801(b)” for “1801(a)”.

Pub. L. 100–322, § 415(a)(2)(B)Subsec. (g). , redesignated subsec. (g) as (a)(4).

Pub. L. 98–2231984—Subsec. (b)(2). substituted “a” for “an immediate”.

Pub. L. 97–2951982—Subsec. (f). substituted “percent” for “per centum”.

Pub. L. 97–72, § 303(b)(1)1981—Subsec. (a). , (2), substituted “the housing loan benefits” for “the benefits” in two places and “insured housing loan” for “insured loan”.

Pub. L. 97–72, § 303(b)(3)Subsec. (b). , substituted “insurance housing loan entitlement” for “insurance entitlement” in two places.

Pub. L. 97–72, § 303(b)(4)Subsec. (d). , (5), substituted “Housing loans will be automatically guaranteed” for “Loans will be automatically guaranteed” and “Any housing loan proposed” for “Any loan proposed”.

Pub. L. 97–72, § 303(b)(6)Subsec. (e). , substituted “require housing loans” for “require loans”.

Pub. L. 97–72, § 303(b)(7)Subsec. (f). , substituted “Any housing loan at least” for “Any loan at least”.

Pub. L. 95–476, § 102(a)1978—Subsec. (a). , inserted provisions entitling Vietnam era veterans to the benefits of this chapter and including such veterans in the cancellation of unused entitlement derived from earlier service and the reduction of current entitlement provisions of this subsection.

Pub. L. 95–476, § 102(b)Subsec. (b). , redesignated cl. (1) as (1)(A), cl. (2) as (B), cl. (3) as (2), and struck out reference to cl. (2) in provision authorizing the Administrator to waive certain conditions prescribed in this subsection.

Pub. L. 94–324, § 7(3)1976—Subsec. (b). , substituted “the Administrator deems” for “he deems” and “the veteran-transferee’s entitlement” for “his entitlement”.

Pub. L. 94–324, § 7(4)Subsec. (c). , substituted “The Administrator” for “He”.

Pub. L. 94–324, § 7(4)Subsec. (d). , substituted “the Administrator” for “him” and “he”.

Pub. L. 94–324, § 7(5)Subsec. (e). , substituted “the Administrator” for “him” in first sentence.

Pub. L. 94–324, § 7(5)Subsec. (g). , substituted “the veteran’s spouse” for “his wife”.

Pub. L. 93–569, § 2(a)1974—Subsec. (b). , expanded provisions so as to permit restoration of a veteran’s entitlement to a guaranteed, insured, or direct loan provided any prior loan has been paid in full, and the property has been disposed of by the veteran, or any immediate veteran-transferee has agreed to the use of his veteran’s entitlement.

Pub. L. 93–569, § 2(b)Subsec. (d)(3). , substituted provisions relating to any lender approved by Administrator pursuant to standards established by him, for provisions relating to approval of mortgagees by Secretary of Housing and Urban Development and designated by him as certified agent.

Pub. L. 91–5061970—Subsec. (b). struck out loan eligibility expiration dates for World War II and Korean conflict veterans.

Pub. L. 91–584Subsec. (g). added subsec. (g).

Pub. L. 90–771967—Subsec. (b). extended loan program for certain World War II veterans from to .

Pub. L. 90–19Subsec. (d). substituted “mortgagee approved by the Secretary of Housing and Urban Development and designated by him” for “Federal Housing Administration approved mortgagee designated by the Federal Housing Commissioner”.

Pub. L. 87–841961—Subsec. (b). substituted in last sentence “by a World War II veteran at any time before , and by a Korean conflict veteran at any time before ” for “at any time before ”.

Pub. L. 86–731959—Subsec. (d)(3). added cl. (3).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 116–315section 101 of title 10section 2101(c) of Pub. L. 116–315section 3701 of this titleAmendment by applicable with respect to full-time National Guard duty (as defined in , United States Code) performed before, on, or after , see , set out as a note under .

Effective Date of 2008 Amendment

Pub. L. 110–317section 10 of Pub. L. 110–317section 2108 of Title 5Amendment by applicable with respect to any sole survivorship discharge granted after , see , set out as a note under , Government Organization and Employees.

Effective Date of 1998 Amendment

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

Effective Date of 1981 Amendment

Pub. L. 97–72section 305 of Pub. L. 97–72section 3741 of this titleAmendment by effective at end of 180-day period beginning on , see , set out as an Effective Date note under .

Effective Date of 1978 Amendment

Pub. L. 95–476, title I, § 10892 Stat. 1502

“(a)
Except as provided in subsection (b) of this section, the amendments made by this title [see Tables for classification] shall take effect on .
“(b)
section 104 of this title The amendment made by clause (1) of [amending section 1810 [now 3710] shall take effect on , except with respect to the authority to prescribe regulations for the implementation of such amendment, which shall be effective on the date of the enactment of this Act [].”
, , , provided that:

Effective Date of 1976 Amendment

Pub. L. 94–324section 9(a) of Pub. L. 94–324section 3701 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1974 Amendment

Pub. L. 93–569, § 1088 Stat. 1867

“The provisions of this Act [see Tables for classification] shall become effective on the date of enactment [] except that the amendments made by sections 2(a)(3) [amending section 1802 [now 3702] of this title] and 2(b) [amending section 1802 [now 3702] of this title] and section 3(2) [amending section 1810 [now 3710] of this title] and 3(4) [amending section 1810 [now 3710] of this title] shall become effective ninety days after such date of enactment [].”
, , , provided that:

Effective Date of 1967 Amendment

Pub. L. 90–77section 405 of Pub. L. 90–77section 101 of this titleAmendment by effective first day of first calendar month which begins more than ten days after , see , set out as a note under .

Pub. L. 102–547Annual Reports on Veterans Receiving Guaranteed Mortgage Loans as Result of Amendments by

Pub. L. 102–547, § 2(c)106 Stat. 3634Pub. L. 104–110, title II, § 201(b)110 Stat. 770, , , directed Secretary of Veterans Affairs to transmit report on selected reserve veterans receiving guaranteed mortgage loans to Committees on Veterans’ Affairs of Senate and House of Representatives no later than , and annually thereafter, prior to repeal by , , .

References in Other Laws

Pub. L. 100–322, title IV, § 415(c)(7)102 Stat. 551

“Any reference, in effect on the date of the enactment of this Act [], in any law, rule, or regulation to any of the sections, or parts thereof, which are redesignated or transferred by this section [sections 1802(a), (g), 1815, 1816(a) to (c), 1816(d) to (f), 1817, 1817A, 1819, and 1832 of this title were redesignated as sections 1802(a)(1), (4), 1803(a)(2), 1832(a) to (c), 1833(a) to (c), 1813, 1814, 1812, and 1833(d) [now 3702(a)(1), (4), 3703(a)(2), 3732(a) to (c), 3733(a) to (c), 3713, 3714, 3712, and 3733(d)], respectively, of this title] shall be construed to refer to the section, or part thereof, as redesignated or transferred by this section.”
, , , provided that:

Technical Nature of 1986 Amendments

Pub. L. 100–322, title IV, § 415(f)102 Stat. 552

“The status of any veteran with respect to benefits under chapter 37 of title 38, United States Code, shall not be affected by the amendments made by, or other provisions of, this section [see Tables for classification].”
, , , provided that: