VA Home Loans for Manufactured Homes

Are you considering purchasing a manufactured home but don’t know if you can get financing? Fortunately, veterans of the U.S. military have access to specialized VA Home Loans for Manufactured Homes.

These loans allow veterans and their families to purchase a manufactured home without stressing about the upfront costs. VA Home Loans for Manufactured Homes offer significant benefits such as no down payment requirement and low-interest rates that many other loan options do not provide.

What is the Difference Between a Manufactured and a Mobile Home?

The Department of Housing and Urban Development enforces the rules and regulations that apply to mobile homes and manufactured houses (HUD). The sole distinction between these two categories of houses is the year in which each was constructed.

Mobile homes are defined as those that were constructed in a factory before June 15, 1976, while manufactured homes are defined as those that were constructed after that date. Both modular houses and prefabricated homes are constructed in factories before being transported to their final locations for assembly.

Both manufactured and modular houses are required to adhere to the local construction requirements of the state and county in which they are erected and must be set upon a foundation that is intended to be permanent.

Can You Get a VA Loan for a Manufactured Home?

You may wonder if you can use your VA benefits to purchase a manufactured home if you're a veteran. The answer is yes! You can use your VA loan to finance the purchase of a manufactured home, and there are a few things you'll need to know to do so.

First, it's essential to understand that not all lenders offer VA loans for manufactured homes. So, you'll need to find a lender that does. Once you've found a lender, they will likely require that the home be anchored to a permanent foundation to qualify for financing. Additionally, the home must meet specific standards the Department of Veterans Affairs set forth to qualify for financing.

These standards include adequate heating, cooling, and ventilation; being free of hazardous materials; and more. If you're considering purchasing a manufactured home using your VA benefits, be sure to research and work with a lender specializing in VA loans. With some preparation, you can take advantage of this great benefit and secure financing for your new home.

How Do Mobile Home Loans Work?

When it comes to financing your manufactured home, there are a few different options available. One popular option is a VA home loan.

VA home loans are available to eligible veterans and active-duty service members, and they can be used to finance both the purchase of a manufactured home and the construction of a new one. VA home loans for manufactured homes come with fantastic benefits, including no down payment required, flexible credit requirements, low-interest rates, and no mortgage insurance.

In addition, VA home loans are available for both new and used manufactured homes, and they can be used to finance either the purchase or the construction of your home. To get started with a VA home loan for your manufactured home, you must fill out a loan application and provide some documentation, such as proof of income and military discharge papers. Once approved for the loan, you'll work with a lender to determine the best way to use your benefits. A VA home loan may be right for you if you're looking for a manufactured home loan with great benefits and flexible terms.

How Old Can a Manufactured Home Be for VA Financing?

A manufactured home is a dwelling assembled in a factory and then transported to a site where it will be occupied. These homes are also known as mobile homes or trailers.

Manufactured homes are subject to different rules and regulations than traditional stick-built homes, and one of these regulations is age. The VA has strict guidelines for the age of a manufactured home that can be financed with a VA loan.

To be eligible, the home must have been built after June 15, 1976. If the home was built before this date, it could still be eligible if it meets specific criteria set forth by the VA. If you want to finance a manufactured home with a VA loan, check the age requirements to ensure that your home is eligible.

VA Home Loans for Modular Homes

If you're a veteran looking for a manufactured home, you may wonder if you can get a VA home loan. The answer is yes! VA home loans can be used to purchase modular homes, which are built in a factory and then shipped to the site where they will be assembled.

Modular homes are an excellent option for veterans who want to purchase a home without going through the hassle of traditional home buying. With a VA home loan, you can finance the purchase of your modular home and have it shipped and assembled on your property. If you're interested in purchasing a modular home with a VA home loan, there are a few things you need to know.

First, you'll need to find a VA lender that offers VA home financing. Many lenders do not offer these loans, so it's essential to do your research and compare options. Once you've found a lender that offers VA mortgages, you'll need to get pre-approved for the loan. This process is similar to getting pre-approved for a traditional mortgage.

The lender will pull your credit history and assess your financial situation to determine how much they will lend you. Once pre-approved for a VA home loan, you can shop for modular homes. When you find one you like, the next step is to appraise it with a certified appraiser. The appraiser will assess the value of the modular home.

Guidelines for a VA-Manufactured Home

Here are a few things to remember to pursue a VA home loan for a manufactured home. First, the home must be built after June 15, 1976, and be permanently affixed to a foundation. The home must also be your primary residence—you can’t use a VA loan to purchase a secondary or investment property.

In addition, the manufactured home you’re interested in must meet specific safety and energy-efficiency standards the federal government sets. These standards are known as the HUD code, and not all manufactured homes meet them. You can check with the manufacturer to see if the home you’re interested in meets these standards. Finally, you’ll need to find a lender participating in the VA loan program. Not all lenders do, so it’s essential to do your research beforehand. You can search for participating lenders on the VA’s website.

Certain conditions must be met to qualify for a VA loan for a manufactured home. These guidelines differ from those for single-family residences and modular dwellings.

As defined by the VA, a manufactured house 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 Lender's Handbook – VA Pamphlet 26-7, a mobile home must meet the following criteria 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)
Secured adequately to a permanent foundation
Securely fastened to a stable base

VA Loan Terms for Manufactured Homes

Mortgages with a 30-year term and a fixed interest rate are standard among purchasers who get a VA loan; however, the Department of Veterans Affairs requires a shorter payoff period. The following table illustrates the loan term for different types of manufactured homes. Regrettably, the shorter loan term will increase the principal and interest payments.

Property Type	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

Use our VA-manufactured home loan calculator

Down Payment Requirement for a VA Manufactured Loan

The down payment requirement for a VA-backed manufactured mortgage is 5%.

Conclusion

In conclusion, VA loans for manufactured homes are easier to get than you think. If you are a veteran or military member 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.

SOURCE:
Loans for Manufactured Homes Classified as Real Estate