Buying a mobile home can be an affordable way to achieve the dream of homeownership. With a VA mobile home loan, qualified veterans can purchase a manufactured or mobile home and land with no down payment. These loans have unique requirements, so it’s important to understand the specifics when considering this option.
What is a VA Mobile Home Loan?
A VA mobile home loan, also called a VA manufactured home loan, allows eligible veterans to finance the purchase of a factory-built or mobile home and land with no down payment. These loans are backed by the Department of Veterans Affairs, which provides a guaranty to protect the lender.
Key features of VA mobile home loans include:
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No down payment required: Veterans can finance 100% of the purchase price.
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No monthly mortgage insurance VA loans don’t require additional monthly mortgage insurance premiums
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Flexible credit guidelines VA has more lenient credit standards than conventional loans. Bankruptcies foreclosures, and high debt-to-income ratios may be acceptable.
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Low interest rates: VA mobile home loans often have lower interest rates than other financing options.
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Can be used to refinance: Existing mobile home loans can potentially be refinanced into a VA manufactured home loan.
VA mobile home loans provide affordable financing to help veterans and service members buy a quality factory-built home.
VA Mobile Home Loan Eligibility
To qualify for a VA manufactured home loan, you must meet VA’s home loan eligibility requirements:
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Minimum service requirements: Active duty members who completed at least 90 days of service, or veterans with at least 181 days of continuous active duty service.
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Homeownership use: You must intend to use the home as your primary residence.
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VA entitlement: You must have sufficient VA home loan entitlement available. Entitlement is generally reused as eligibility restored.
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Credit and income requirements: Lenders will evaluate your credit, income, debts, and assets to determine if you can reasonably make the monthly payments. VA has flexible guidelines.
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Prior VA loan requirement: If you had a previous VA home loan, you must fully pay off the prior loan before getting another VA loan.
Meeting basic VA loan criteria is the first step in qualifying for a mobile home loan.
Types of Mobile Homes Eligible for VA Loans
Not all manufactured homes qualify for VA financing. The program has requirements related to the home’s age, size, construction, and permanent foundation.
VA requires that mobile homes:
- Be multi-wide (doublewide or larger)
- Have been built after June 15, 1976
- Be attached to a permanent foundation
- Meet VA minimum size requirements:
- 600 square feet for a doublewide
- 900 square feet for a triplewide
- Meet HUD construction standards
Used mobile homes may be eligible, but cannot have been previously installed or occupied at any other site. VA appraisers inspect homes to confirm they meet all program standards.
Additionally, manufactured homes outside of a mobile home park must comply with VA development, planning, and zoning requirements.
Land and Site Requirements with VA Mobile Home Loans
VA mobile home loans must include the purchase of the home site or lot. Here are key requirements related to land:
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The land must be purchased with the home – you cannot finance just the mobile home.
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Loans can include purchase of an existing home site/lot or a new lot owned less than 12 months.
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Land can be owned by an LLC, partnership, etc., but the veteran buyer must be a member/partner with a majority interest.
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The site must have water, electricity, sewage, sanitary facilities, and legal road access.
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The land value must appraise for at least 50% of the home’s value (or 40% in certain cases).
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Loans for homes on leased land are only eligible in some cases under VA’s Native American Direct Loan program.
When buying a mobile home, the associated land is a key component that must meet VA guidelines.
How to Find and Apply for a VA Mobile Home Loan
The process of getting a VA manufactured home loan involves these primary steps:
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Get prequalified: Work with a lender to evaluate your eligibility and estimated pricing. This helps you know what you can afford.
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Find a home: Consider both new and used mobile homes from dealers and private sellers. Ensure the home meets VA requirements.
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Make an offer: Your offer should specify the price for both the manufactured home and land purchase.
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Complete loan application: Provide all required documentation to your lender to verify your eligibility.
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Home appraisal ordered: The lender will order a VA appraisal to confirm the property value.
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Loan closing: After approval, sign documents to close on your new mobile home loan.
Throughout the process, your lender will guide you through the documentation, appraisal, and underwriting steps required to close your loan.
FAQs about VA Mobile Home Loan Requirements
Can I get a used mobile home with a VA loan?
Yes, VA allows financing for new and used manufactured homes. However, used mobile homes must meet certain age and quality standards. They cannot have been previously installed or occupied at any other site.
What credit score is needed?
There is no specific minimum credit score for VA loans. Lenders review your entire credit profile, and may approve loans with scores in the 500s or 600s in some cases. Having compensating factors like significant assets can help gain approval with lower scores.
Can I get a VA cash-out refinance on a mobile home?
In certain cases, existing VA mobile home loans can potentially be refinanced into a VA cash-out loan to access your home equity. Your lender will need to assess whether the loan meets program requirements.
What states allow VA mobile home loans?
VA mobile home loans can be used to purchase manufactured housing in any U.S. state. However, some states restrict certain owned mobile home loans. Your lender can advise if state laws impact financing options for a particular property.
How much money can I borrow with a VA mobile home loan?
The VA does not set a maximum loan amount for mobile homes. Your lender will determine the loan amount you qualify for based on your income, debts, assets, and the appraised value of the home and land.
With proper preparation and research, veterans can use VA mobile home loans to buy the manufactured home of their dreams with no down payment required. Consulting a lender early about requirements and your loan options is key to make the process go smoothly.
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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