Can You Get a VA Loan for a Manufactured Home? A Detailed Guide

Manufactured homes, sometimes called mobile homes, are an appealing housing option for many buyers thanks to their affordability. For veterans and military members, VA loans make financing a manufactured home even more attainable. But can you actually get a VA loan for a manufactured home, and if so, what are the requirements and process?

In this comprehensive guide, we’ll cover everything you need to know about using your VA home loan benefit to purchase a manufactured home.

What is a Manufactured Home?

Before diving into the details on VA manufactured home loans let’s clarify some terminology.

• Manufactured home This refers to a factory-built home constructed after June 15, 1976 that meets federal building codes enforced by HUD (US. Department of Housing and Urban Development) Manufactured homes are transportable in one or more sections and installed on a permanent foundation.

• Mobile home: A mobile home is a factory-built home built before June 15, 1976 when HUD codes went into effect. They do not need to meet federal building standards. Lenders generally won’t finance mobile homes.

• Modular home: Built in sections in a factory, modular homes must meet local or state building codes. The modules are then shipped to the site and assembled on a foundation. Modular homes are treated just like traditional site-built homes when it comes to financing.

Can You Get a VA Loan for a Manufactured Home?

Yes, you can get a VA loan for a manufactured home as long as it meets certain criteria. VA loans cannot be used to purchase mobile homes built before 1976.

According to the VA, here are the basic requirements for a manufactured home to be eligible for a VA loan:

• The home must have been built after June 15, 1976 and have a HUD tag verifying it meets federal manufactured home construction and safety standards.

• It must be classified as real property and permanently affixed to a foundation.

• The home must meet VA minimum property requirements for safety, soundness and structural integrity.

• It must be at least 400 square feet if a single wide, or 700 square feet if a double wide.

As you can see, the home cannot have been moved from its original site and needs to be attached to a permanent foundation on the land in order to qualify for a VA loan.

VA Loan Requirements for Borrowers

In addition to manufactured home requirements, VA loan borrowers must meet certain qualifications themselves:

• Certificate of Eligibility – Documents your eligibility for VA loan benefits based on military service. Can be obtained through eBenefits.

• Credit score – No statutory minimum but lenders often require 620 or higher.

• Down payment – Typically no down payment is required. Exceptions are borrowers with impacted entitlement.

• Debt-to-income ratio – Ideally 41% or lower. Can go up to 50% with compensating factors.

• VA funding fee – Ranges from 1.4% to 3.6% of the loan amount depending on down payment and subsequent use of VA loan benefit.

As long as you meet VA guidelines for credit, income, and service requirements, you can qualify for a $0 down VA loan even if the property is a manufactured home.

Steps to Getting a VA Manufactured Home Loan

If you’ve determined you meet basic VA loan qualifications, follow these steps to get financing:

1. Find a lender – Not all lenders offer VA loans on manufactured homes so find one with manufactured home programs.

2. Get preapproved – Preapproval will tell you the loan amount and rates you qualify for. This also shows sellers you’re a serious buyer.

3. Shop for your home – Find a manufactured home built after 1976 that meets VA requirements. Work with a real estate agent experienced in manufactured housing.

4. Make an offer – Make an offer once you find the perfect manufactured home. Consider making your offer contingent on financing and appraisal.

5. Inspection and appraisal – The property must be inspected to ensure it’s structurally sound. An appraisal is also required to determine value.

6. Loan processing and underwriting – Provide required documentation to verify income, assets, and service. Underwriting confirms you meet VA criteria.

7. Closing – Schedule a closing date once underwriting is cleared. At closing, sign loan documents and take ownership!

The process of getting a VA manufactured home loan is very similar to financing a traditional site-built home. The key is finding an approved lender and ensuring the home meets guidelines.

Pros and Cons of VA Loans for Manufactured Homes

VA loans offer nice benefits for financing manufactured homes, including:

Pros

• Requires no down payment in most cases
• Offers competitive interest rates
• Funding fee can be financed into loan amount
• No prescribed lending limits

Potential Cons

• Must find lender that offers manufactured home financing
• Home must be attached to permanent foundation
• Home cannot have been previously installed elsewhere
• Requires meeting VA credit and eligibility guidelines

While VA financing presents a great opportunity for eligible buyers to own a manufactured home, make sure you understand program guidelines and work with an experienced lender.

Alternatives to VA Loans for Manufactured Homes

If you don’t qualify for a VA loan, there are alternative financing options for manufactured homes:

• FHA loans – Require 3.5% down payment and minimum 580 credit score.

• Conventional loans – Typically require at least 5% down and 620 credit score.

• USDA loans – Offer 100% financing for low-income borrowers in rural areas.

• Personal loans – Fund a manufactured home with an unsecured personal installment loan. Much higher rates than mortgages.

• Dealer financing – Some manufactured home dealers offer their own financing programs.

Always compare multiple loan options if you don’t qualify or can’t find a lender for a VA manufactured home loan. There are other paths to financing, but likely with higher costs.

FAQs about VA Manufactured Home Loans

Here are answers to some frequently asked questions about financing manufactured housing with a VA loan:

Can I move a manufactured home after buying it with a VA loan?

No. The home must remain permanently attached to the original foundation to comply with VA guidelines.

What requirements are there for the land/lot?

The lot must be residential in nature and zoned for manufactured homes. No undeveloped land.

Are closing costs with VA loans higher for manufactured homes?

No, VA loans have the same closing costs regardless of property type. Expect origination fees, appraisal cost, and other typical fees.

What if the home doesn’t meet the minimum VA square footage?

The home would be ineligible. The minimum is 700 square feet for a multi-wide and 400 square feet for a single wide.

Can I do a cash-out refinance on a VA manufactured home loan?

Yes, you can refinance and take cash out if you have sufficient equity.

The Bottom Line

Veterans and service members have earned wonderful homebuying benefits, including the ability to buy a manufactured home with a VA loan in many cases. If you’re hoping to take advantage of this, make sure you understand program guidelines, connect with an approved lender, and find a qualified home. While not the easiest loan to get, VA financing presents an affordable path to homeownership for eligible buyers.