---
kind: "section"
citation: "38 C.F.R. § 36.4355"
title: "38"
number: "36.4355"
heading: "Loans, first, second, or unsecured."
url: "https://uscodex.org/cfr/38/36.4355"
---

# §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)](/cfr/38/36.4354.md?p=a).


## Notes

### Amendments

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

### Source

Source: 73 FR 6310, Feb. 1, 2008, unless otherwise noted. Redesignated at 75 FR 33705, June 15, 2010.

### Authority

Authority: 38 U.S.C. 501 and 3720.

### Amendments

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