VA Loans On Manufactured Homes: What You Need To Know

Does the VA finance manufactured homes?

Veteran sitting on the front porch with his familyThe words “mobile home” and “manufactured home” (which includes modular homes) are sometimes used synonymously. However, they are technically two distinct entities.

Mobile houses, as defined by the Department of Housing and Urban Development (HUD), are dwellings constructed prior to June 15, 1976.

On the other hand, manufactured houses are dwellings constructed after that date. Unlike mobile houses, manufactured homes must adhere to certain HUD criteria governing their construction methods. Modular dwellings are often classified as manufactured.

However, under the VA loan program, mobile and manufactured houses are frequently used interchangeably. A mobile (or manufactured) home is defined for VA loan purposes as any dwelling that is constructed in a factory on a permanent frame called a chassis. On the other hand, a modular house is constructed in parts in a factory. The structure is then moved to a chosen location, where it is assembled and installed on a foundation.

To qualify for a VA loan for a mobile home, certain conditions must be met. These criteria differ from those for single-family residences and modular dwellings.

A manufactured house, as defined by the VA, is one that is constructed on a permanent frame and may be relocated in one or more portions. It must have areas for sleeping, dining, and cooking. The house, which must have a bathroom, must be large enough to accommodate a permanent residence. A single-wide mobile house must be at least ten feet wide and have a minimum floor size of 400 square feet; a double-wide manufactured home must be at least twenty feet wide and have a minimum floor area of 700 square feet.

According to the VA's Lenders Handbook – VA Pamphlet 26-7, a mobile home must meet the following criteria in order to qualify for financing through the VA loan program:

Adhere to all relevant construction codes and zoning regulations governing real estate.

  • Classified and taxed as real property,
  • Conforms substantially to the VA's minimal property standards (MPRs)
  • Properly secured to a permanent foundation
  • Securely fastened to a stable base

Terms for a VA Loan for a Mobile Home

The majority of VA loans have a 30-year payback period. However, according to the Catalog of Federal Domestic Assistance, the maximum period for VA prefabricated home loans is far shorter (CFDA).

Manufactured home scenario Maximum VA loan term
Double-wide manufactured home 23 years and 32 days
Double-wide manufactured home plus land 25 years and 32 days
Land purchased for a home you already own 15 years and 32 days
Single-family manufactured home and land purchase 20 years and 32 days

Conclusion

In conclusion, VA loans for manufactured homes are easier to get than you may think. If you are a veteran or military member, and are interested in purchasing a manufactured home, be sure to check into the VA loan program. With low interest rates and no down payment required, the VA loan program can make manufactured home ownership a reality for you.