Va. Code § 6.2-879 Certain Loans Not Considered Loans Secured By Real Estate

• Library: Virginia Statutes
• Edition: 2023
• Currency: Current with changes from the 2023 Special Legislative Session
• Year: 2023
• Citation: Va. Code § 6.2-879

A. If the bank reasonably and prudently relies upon factors other than or in addition to the real estate security, such as general credit standing, guarantees, commitments, or tangible or intangible personal property security, and enters in its records a written statement of the factors it relies on, the loan does not constitute a loan secured by real estate within the meaning of § 6.2-878, except that if the terms of the transaction shall be more favorable than in the absence of a lien, an appraisal shall be required as provided under § 6.2-878.

B. Loans made to homeowners for maintenance, repair, landscaping, modernization, alteration, improvement to, and furnishings and equipment for, their homes, whether or not secured, shall not be considered as loans secured by real estate within the meaning of § 6.2-878, provided each such loan shall (i) be payable in approximately equal monthly installments, (ii) not be for a term longer than 12 years, and (iii) not exceed an amount specified in accordance with subsection C of § 6.2-878.S uch home loans may otherwise be made under the provisions of § 6.2-878 or 6.2-880.I f such loan is in excess of the ...