Getting a manufactured or mobile home with a VA loan is possible, but there are specific requirements and guidelines borrowers need to follow. As a veteran myself, I know how confusing VA loan rules can be, especially when it comes to unique properties like manufactured homes.
In this comprehensive guide, I’ll walk through everything you need to know about getting a manufactured home with a VA mortgage. We’ll cover
- What is a manufactured home?
- Manufactured home loan types
- How to use a VA loan for a manufactured home
- Unique requirements for VA manufactured homes
- Why choose a manufactured home?
- Tips for shopping for your VA manufactured home loan
Let’s get started!
What Exactly is a Manufactured Home?
Manufactured homes (also known as mobile homes) are prefabricated houses that are built in a factory and then transported to a site. Many people mistakenly think manufactured homes are basically just trailers or RVs. But modern manufactured homes are very different!
Here are some key features of today’s manufactured homes:
- They are built to meet HUD safety and construction standards
- They are typically double or triple-wide, ranging from 800 to 2,000 square feet.
- They are installed on a permanent foundation, just like traditional site-built homes.
- Many offer high-end finishes and open floor plans.
So manufactured homes today provide a real home ownership experience combined with affordability and customization.
Types of Loans for Manufactured Homes
There are several loan programs that allow you to finance a manufactured home purchase Here are the most common options
Chattel Loans
Chattel loans let you finance just the home itself, without the land This is considered a personal property loan. It can be easier to qualify, but interest rates are usually higher
FHA Loans
FHA is a government-backed mortgage option that offers low down payments and flexible credit requirements. You can use FHA financing to buy a manufactured home and land together.
Conventional Loans
Some lenders offer conventional mortgages for manufactured homes that include the home and land. You’ll need good credit and a higher down payment.
VA Loans
VA loans help eligible veterans and service members buy a home with no down payment required. VA loans can be used to buy a manufactured home and land together.
How to Use a VA Loan for a Manufactured Home
VA loans are a great financing option for veterans looking to buy a manufactured home. Here are some key steps:
1. Find a Lender
Not all lenders offer VA loans for manufactured housing. So you need to find one who does. Ask local lenders or search online for “VA manufactured home loans” and your state.
2. Get Pre-Approved
Work with your lender to get pre-approved for a VA loan amount. This helps you know your price range when shopping.
3. Shop for Homes
Look for manufactured homes that meet VA requirements – at least 400 sq ft single-wide or 700 sq ft double-wide. Consider new or used.
4. Make an Offer
Once you find the perfect home, make an offer contingent on VA loan approval. Hire a home inspector to check it out.
5. Complete Loan Process
Provide documents for income, assets, VA eligibility, property value. Then undergo loan underwriting and closing!
And you’ll be ready to move into your new manufactured home, financed with a VA loan!
What’s Unique About VA Manufactured Home Loans?
VA has specific guidelines lenders must follow for loans on manufactured housing. Here are some key VA manufactured home loan requirements to know:
- Home must be attached to a permanent foundation
- Home is classified as real estate, not personal property
- Home meets HUD construction standards
- Minimum 400 sq ft single-wide, 700 sq ft double-wide
- Maximum loan terms of 20 years (single) or 25 years (double)
- Potentially higher credit score requirements
VA appraisers also have unique requirements for establishing value on manufactured homes.
So while VA loans provide great benefits, you need to make sure your home and loan meet program guidelines.
Why Choose a Manufactured Home with a VA Loan?
There are many good reasons veterans look into using a VA loan for a manufactured home. Here are some of the biggest benefits:
Affordability – Manufactured homes are on average 30% less expensive per square foot compared to site built homes. This helps you maximize your VA loan benefit.
Customization – You can often work directly with the manufacturer to choose custom features and layouts. This level of personalization is hard to find with existing homes.
Quality – Thanks to advances in construction, manufactured homes can be very high quality with the latest finishes and amenities.
Value – While manufactured homes don’t appreciate as quickly as site built homes, they can still build equity over time that you can tap into.
Loan perks – The VA loan benefit offers great features like no down payment and discounted interest rates.
For me, getting a manufactured home with a VA loan made sense thanks to the affordability and customization. Just make sure to find an experienced lender who can walk you through the process!
6 Tips for Finding the Best VA Manufactured Home Loan
If you’ve decided a manufactured home with a VA loan is right for you, here are my top 6 tips for finding the ideal mortgage:
1. Compare multiple lenders – Rates and fees can vary, so shop around. Get quotes from 3-5 lenders.
2. Ask about VA loan experience – Not all loan officers are well-versed in VA manufactured home guidelines. Find one who is.
3. Consider local/regional lenders – They may be more familiar with requirements in your area versus a national lender.
4. Review fees carefully – Loan fees, escrow, title, and closing costs can add up. Keep them reasonable.
5. Ask about down payment help – Some areas offer grants for veterans buying manufactured homes that can help with costs.
6. Read reviews – Check third-party review sites to learn about others’ experiences with lenders.
Finding the right lender for your VA manufactured home loan is key. You want an expert who can guide you through the unique process.
Are You Ready to Buy a Manufactured Home with a VA Loan?
Purchasing a factory-built home using your VA benefits can be an affordable pathway to homeownership. With proper research and the right lender, you can end up with the manufactured home of your dreams!
If you’re ready to move forward, the next step is connecting with lenders. Click to get personalized quotes from top VA mortgage lenders now. Then you can start making your manufactured home ownership dreams a reality!
Can You Use A VA Loan To Buy A Mobile Or Manufactured Home?
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Requirements To Get A VA Manufactured Home Loan
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Can I Buy a Manufactured Home With a VA Loan? (Step by Step Guide)
FAQ
Can you use a VA home loan on a manufactured home?
What property Cannot be financed with a VA loan?
Does VA require tie-downs for manufactured homes?
Can I use the VA home loan to build a home?
Can you get a VA loan for a mobile home?
There’s technically no such thing as a VA loan for a mobile home; the term VA-approved lenders use is manufactured home. Manufactured homes must follow regulations set by the U.S. Department of Housing and Urban Development (HUD), which spell out how manufactured homes must be built. Homes that don’t follow HUD’s guidelines are called mobile homes.
Can I buy a manufactured home with a VA mortgage?
If you want to buy a manufactured home with a VA mortgage, the first thing you’ll need to do is to find a participating VA lender offering these loans. Not all VA lenders offer VA mobile home loans; the nature of the housing market in your area may or may not include them depending on location.
Can you refinance a mobile home with a VA loan?
VA loan rules also allow cash-out refinancing of a mobile home or manufactured home, but you will need to see if there is a participating VA lender willing to offer such an option for a mobile home. Get a free, no-obligation consultation regarding your VA Loan!
Can a VA loan be used to buy a modular home?
Veterans can use a VA loan to buy an existing modular home, as long as it meets local or state building codes. The lending process is the same as for a stick-built home.