VA Home Loans for Manufactured Homes

Does the VA finance manufactured homes?

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

Veteran sitting on the front porch with his familyIt is common practice to use the terms “mobile home” and “manufactured home” interchangeably. However, in a strictly technical sense, they are two entirely distinct entities. Mobile homes are defined as buildings that were erected before the 15th of June in 1976 by the Department of Housing and Urban Development (HUD). On the other hand, homes built after that time period are referred to as manufactured houses. In contrast to mobile houses, manufactured housing are subject to stricter regulations imposed by HUD on the manner in which they may be built.

However, in the context of the VA loan program, mobile and prefabricated houses are treated as if they were one and the same thing. Any house that was constructed in a factory on a permanent frame known as a chassis is considered to be a mobile (or manufactured) home for the purposes of obtaining a VA loan. Modular homes, on the other hand, are constructed in a factory out of prefabricated components of the house. After that, it is moved to the location that has been selected, where it will be assembled, and then positioned on a base.

Can you get a VA loan on a manufactured home?

Manufactured homeIf you're a veteran, you may be wondering if you can use your VA benefits to purchase a manufactured home. 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 in order to do so.

First, it's important 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 in order to qualify for financing. Additionally, the home must meet certain standards set forth by the Department of Veterans Affairs in order to be eligible for financing.

These standards include requirements like having adequate heating, cooling, and ventilation; being free of hazardous materials; and more. If you're thinking about purchasing a manufactured home using your VA benefits, be sure to do your research and work with a lender that specializes in VA loans. With a bit of 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 a few key benefits, including no down payment required, flexible credit requirements, and 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'll need to fill out a loan application and provide some documentation, such as proof of income and your military discharge papers. Once you're approved for the loan, you'll work with a lender to determine the best way to use your benefits. If you're looking for a manufactured home loan that comes with great benefits and flexible terms, a VA home loan may be right for you.

How Old Can a Manufactured Home Be for VA Financing?

A manufactured home is a dwelling that is 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 in place for the age of a manufactured home that can be financed with a VA loan.

The home must be built after June 15, 1976, in order to be eligible. If the home was built before this date, it can still be eligible if it meets certain criteria set forth by the VA. If you are looking to finance a manufactured home with a VA loan, be sure to check the age requirements to ensure that your home is eligible.

Can I buy a modular home with a VA loan?

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

Modular homes are a great option for veterans who want to purchase a home, but don't want to go 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 important 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're willing to lend you. Once you've been pre-approved for a VA home loan, you can start shopping for modular homes. When you find one that you like, the next step is to have it appraised by a certified appraiser. The appraiser will assess the value of the modular home.


Guidelines for a VA Manufactured Home

VA loan guidelineThere are a few things to keep in mind if you’re interested in pursuing 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 certain safety and energy-efficiency standards set by the federal government. 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 that participates in the VA loan program. Not all lenders do, so it’s important to do your research ahead of time. You can search for participating lenders on the VA’s website.

To qualify for a VA loan for a manufactured home, certain conditions must be met. These guidelines 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

VA Loan Terms for Manufactured Homes

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

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
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%.

Rotating question markFAQs About VA Loan for a Manufactured Home

Q. Can you buy a manufactured home with a VA loan?

A. Yes, you can purchase a manufactured home with a VA loan. The home must be permanently affixed to a foundation and meet certain other criteria in order to qualify.

Q. Is it difficult to get financing for a mobile home?

A. It can be difficult to get financing for a mobile home because they can be considered high-risk investments. Lenders may be hesitant to give loans for mobile homes because they may not appreciate in value as much as traditional homes. Additionally, mobile homes may not be as easy to sell as traditional homes, so lenders may be concerned about getting their money back if the borrower defaults on the loan.

Q. What are the differences between mobile, manufactured and modular homes?

A. The Department of Housing and Urban Development is in charge of enforcing 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 one was constructed. Mobile homes are defined as those that were constructed in a factory before to 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.

SOURCE: Loans for Manufactured Homes Classified as Real Estate

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.

Recommended Reading

  1. The Ultimate VA Loan FAQ: Question and Answers for Veterans
  2. Buy a House With a VA Loan: Get More Info
  3. VA Mortgage Refinancing Cash Out: Get a cash out now