VA Loan PlusVA Manufactured Home Loan Calculator
Did you know that a VA manufactured loan requires a down payment and has a shorter term?
If you're a veteran of the United States armed
forces, you may be eligible for a manufactured home loan
backed by the Department of Veterans Affairs. VA home
loans and manufactured homes are supplied by VA approved
lenders. The Veteran's Administration does not loan
money directly for VA mortgages.
VA Manufactured Home Down Payment Requirement
It's common knowledge that VA home loans are zero down payment, and for new and existing homes, that's true. But did you know that manufactured homes require a 5% minimum down payment?
Manufactured homes tend to have a higher default rate than stick built or modular homes. Consequently, many VA lenders avoid financing manufactured homes. The VA Department of Veteran Affairs establishes the guidelines for lenders who finance manufactured homes. One of the lending rules is a 5% minimum down payment for a manufactured home.
Manufactured Home Loan Terms
Another requirement for manufactured housing is the loan term. The VA loan program offers 30 and 15 year repayment terms, however, manufactured homes have a shorter repayment term.
Here's a chart that illustrates the loan term for a manufactured home.
| 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 |
What is a Manufactured Home?
Manufactured homes are structures that were built after June 15th, 1976 and meet the requirements of the Mobile Home Construction and Safety Act.
A manufactured home, also known as a mobile home or
trailer, is a house that was built entirely in a factory
and is built on a permanent steel chassis. Other names
for manufactured homes include mobile homes and trailers
(rather than a permanent foundation).
These dwellings
are often constructed on wheels that may be removed
after being towed to the location of the permanent
dwelling, which can either be privately owned by the
homeowner or rented by the homeowner.
HUD has
established a set of building regulations that must be
adhered to throughout the construction of a
prefabricated house. A prefabricated house may be
recognized by its HUD tag, which is one of the major
methods to do so.
Manufactured Home Requirements
The United States Department of Housing and Urban Development (HUD) establishes the construction regulations that manufactured houses, which are wholly constructed inside of factories, are required to comply with (HUD). The following must be present in order to qualify for a prefabricated house from the VA:
Permanently attached to that is not removable
Minimum interior floor size of 700 square feet
The home is required to be designated a real estate entity in accordance with state law and to satisfy all the municipal zoning criteria for real estate as outlined in Chapter 12 of VA Pamphlet 26-7.
Manufactured houses are required to have a metal identification plate attached to the structure. The identification tag is also known as a "red tag" or a "HUD tag."
In addition, prefabricated houses are required to include a “data plate” somewhere within the home. This plate is often attached to the wall of a bedroom closet or the wall of a kitchen cabinet. A data plate is a label that provides information about the home, including its dimensions and other technical details.
Frequently Asked Questions
Q. Is there a VA funding fee with a manufactured home loan?
A. Yes, there is a funding fee with a manufactured home loan. This fee is typically a percentage of the loan amount and is used to cover the costs of originating and servicing the loan.
Q. Is there mortgage insurance on a manufactured home loan?
A. There is no mortgage insurance on a VA loan for a manufactured home. The VA guarantees a portion of the loan, so the lender is protected against loss if the borrower defaults.
Q. Can I roll in the closing costs into a manufactured home loan?
A. Typical closing costs cannot be rolled into a VA manufactured home loan. However, seller paid closing costs can defray most or all closing costs, if agreed to by the seller.
Another option is to ask the lender to pay a portion of the closing costs in exchange with a higher mortgage rate.
Manufactured Home Calculator
To calculate your mortgage payment on a VA manufactured home loan, use our handy calculator tool. Just enter in your loan amount, interest rate, and loan term, and we'll do the rest!
Note: The minimum down payment for a VA mobile home loan is 5%.
Learn more about VA backed manufactured loans