Title III provides for three general classes of loans:

1. For the purchase or construction of new homes, the payment of repairs on present homes, or the payment of delinquent debts, taxes, or assessments on them.
2. For the purchase or repair of farms and farm equipment.
3. For the purchase of business property, supplies, and equipment.

Home loans

A veteran’s application for guaranty of a loan for the purchase or construction of a home which he intends to occupy may be approved if the administrator finds that:

1. The proceeds of the loan will really be used for the purpose stated.
2. The contemplated terms of payment of the mortgage bear a proper relation to the veteran’s present and anticipated income and expenses, and the nature and condition of the property make it suitable for dwelling purposes.
3. The purchase price or construction cost of the property, including the unimproved lot, does not exceed the reasonable normal value, as determined by a proper appraisal.

An application for the guaranty of a loan to be used for the purpose of making repairs, alterations, or improvements in or paying delinquent indebtedness, taxes, or special assessments on residential property owned by a veteran and used by him as his home may be approved if the administrator finds that the proceeds of the loan will really be used for such purpose or purposes.

Farm loans

A veteran’s application for the guaranty of a loan to be used in purchasing any land, buildings, livestock, equipment, machinery, or implements, or in repairing, altering, or improving any buildings or equipment to be used in farming operations conducted by the applicant, may be approved by the administrator if he finds that:

1. The proceeds of the loan really will be used for the purposes indicated.
2. The property will be useful in and reasonably necessary for efficiently conducting such operations.
3. The ability and experience of the veteran and the nature of the proposed farming operations are such as to show a reasonable likelihood that the operations will be successful.
4. The purchase price to be paid by the veteran does not exceed the reasonable normal value, as determined by a proper appraisal.

Veterans who want to be farmers and need money to do it should also follow up on the GI Bill provision which makes qualified veterans eligible for loans under the Bankhead-Jones Farm Tenant Act. Veterans with farm training or experience, even though they are not tenant-farmers or sharecroppers, can get loans by this arrangement for buying farms and equipment, making repairs, paying debts, and supporting their families.

Business property loans

An application by a veteran for the guaranty of a loan to be used in purchasing any business, land, building, supplies, equipment, machinery, or tools to be used by the applicant in pursuing a gainful occupation (other than farming) may be approved by the administrator if he finds that:

1. The proceeds of the loan really will be used for the purpose indicated.
2. The property will be useful in and reasonably necessary for the efficient and successful pursuit of that occupation.
3. The ability and experience of the veteran and the conditions under which he proposes to pursue the occupation are such as to show a reasonable likelihood that he will be successful in the pursuit of that occupation.
4. The purchase price to be paid for the property by the veteran does not exceed the reasonable normal value, as determined by a proper appraisal.

From EM 36: Does It Pay to Borrow? (1945)