VA Mobile Home Loans
The Veterans Benefits Administration supports veterans, surviving spouses, and current service members with government-backed loans for home purchases. You can use a VA home loan to buy a manufactured home if it’s attached to a fixed foundation. Veterans Guide helps military members access the benefits they are entitled to and can help you learn more about VA mobile home loans.
- The VA offers mobile home loans for veterans, service members, and surviving spouses, enabling the purchase of manufactured homes attached to permanent foundations.
- Eligibility for a VA mobile home loan requires meeting specific service criteria and the home must comply with HUD safety and construction standards.
- VA mobile home loans offer benefits such as no down payment, limited closing costs, and potentially lower interest rates compared to conventional loans.
The VA home loan program can help veterans, service members, and surviving spouses buy homes. If the property meets certain conditions, you can use a VA home loan to purchase a mobile home, also called a manufactured home.
Veterans Guide can help you and your family learn more about VA mobile home loans to help you decide if it’s the right choice for you.
Can You Use a VA Home Loan To Buy a Mobile or Manufactured Home?
You can purchase a manufactured or mobile home through the VA manufactured home loan program, but there are certain criteria you and the home must meet.
Specifically, your eligibility for a VA home loan depends on factors such as:
- Length of service or service commitment
- Duty status
- Character of service
To get a VA home loan, you’ll need a certificate of eligibility, or COE. The COE accounts for minimum active-duty service requirements and any exceptions.
You can use a VA mobile home loan in a few different ways. You can get a loan to do the following:
- Purchase a manufactured home and the lot where it will be attached
- Refinance an existing loan on a manufactured home and buy the lot where it will be attached
- Refinance an existing VA loan on a manufactured home attached to a lot with an interest rate reduction refinance loan, or IRRRL
In addition, the mobile home itself must also meet specific requirements for VA manufactured home loan eligibility. To qualify, the home must:
- Be on a permanent foundation
- Meet U.S. Department of Housing and Urban Development manufactured home safety and construction standards
- Meet the minimum requirements for floor area of 400 square feet for a single-wide or 700 square feet for a double-wide
If you plan to purchase a home or lot that needs appraising, the VA also places requirements on the appraiser. The appraiser must:
- Know state and local regulations regarding mobile homes
- Know how to look for certain items, such as missing HUD labels and changes to the home, such as additions, replacement of components, and modifications
- Prepare appraisals subject to compliance regulations
If you want to get a loan for a mobile home that has yet to be built, the VA requires:
- A floor plan
- A foundation plan
- Elevation plans
- Details about the home’s interior, including electrical, plumbing, heating, and flooring
A VA mobile home loan can only be used for a manufactured home that is “real property,” meaning it is attached to a permanent foundation. It must also qualify as real estate under state law.
How Do VA Mobile Home Loans Differ From Other VA Home Loans?
To get a VA mobile home loan, you must meet the same minimum requirements the VA imposes for other VA home loans. The VA does not issue loans directly. It guarantees part of the loan, reducing the risk to the lender. The private lenders that issue these loans might have different limits and standards if you want to purchase a mobile home compared to another kind of property.
You must meet the following minimum requirements for a purchase loan:
- You must obtain a COE.
- You must meet the credit, income, and other requirements set by the VA and individual lenders.
- The home purchased must be a primary residence.
For conventional mortgages, lenders often charge higher interest rates for loans to buy mobile or manufactured homes than they do for non-mobile or non-manufactured homes. The difference can be as much as one percent but is generally less when the VA backs the loan.
The VA does not set a minimum credit score on a VA home loan, but most lenders will require a minimum credit score of 500. Some require a minimum of 620, the minimum for a conventional mortgage. You can get the best terms if your score is 740 or higher. The better your credit score, the better your chances of getting a mortgage and the better your terms. Being aware of the credit requirements is an essential step in securing a VA Home Loan.
The VA also has specific requirements that apply to the manufactured home itself. These are the property requirements that include its legal status, size, and other factors.
Property Requirements for a VA Mobile Home Loan
It might help to distinguish between the terms “manufactured” and “mobile.” The VA uses the term “manufactured” to refer to any mobile home built after June 1976. Any mobile home built before this date is not considered “manufactured” and is therefore not eligible for VA financing.
To get a VA manufactured home loan, the property you want to buy must:
- Be affixed to a permanent foundation
- Be classified as real property with land title
- Have a “HUD tag” or “red tag,” which is a metal plate attached outside of the home
- Meet minimum size standards of 400 square feet for a single-wide or 700 square feet for a double-wide
- Be move-in ready
Even if your manufactured home meets all the VA requirements, you might still have challenges finding a lender to issue a VA-backed mobile home loan. The age of the property and its specifications will influence how willing lenders are to fund a loan.
Benefits of a VA Mobile Home Loan
There are several benefits to getting a VA loan for your mobile home purchase. VA home loans can come with better terms than traditional loans from banks or credit unions. According to the VA, almost 90 percent of VA-backed home loans do not require a down payment.
Other benefits include the following:
- No private mortgage insurance, or PMI
- Limited closing costs
- Lower interest rates
- Availability for use multiple times by an individual applicant
There’s no penalty if you pay off a VA mobile home loan early, so you don’t have to worry about fees if you want to make extra payments against the loan. If you fall behind on payments, the VA can assign a home loan technician to help you avoid foreclosure.
The VA does charge a funding fee, which is an additional cost that does not apply to conventional home loans. The funding fee is a percentage of the loan amount. The amount of the fee depends on the type of loan, the amount of your down payment, and other factors.
The Veterans Administration has a comprehensive Buyer’s Guide that provides in-depth information about VA home loans.
Organizations That Offer VA Mobile Home Loans
Several lenders and banks offer VA mobile home loans. Each has different criteria for what kind of manufactured home they will finance.
Veterans United offers VA mobile home loans for new manufactured homes. Your home cannot be a single-wide or installed at a previous location.
On Q Financial offers VA mobile home loans on double-wide or triple-wide manufactured homes. The company offers purchase and refinancing on new and existing construction. On Q advertises a minimum credit score of 530 for VA mobile home loans, compared to 620 for a conventional manufactured home loan.
VA Nationwide Home Loans offers VA mobile home loans on singlewide, doublewide, triplewide, and quadruplewide manufactured homes permanently affixed on land owned by the applicant. The company might offer financing for homes on leased land if FannieMae approves the manufactured home community.
Get Help From an Organization Dedicated To Serving Veterans
A VA mobile home loan can be an important source of support for veterans, service members, and surviving spouses who want to own their own home. Because the guidelines for manufactured home purchases are detailed, we encourage every veteran who wants more information to contact us at Veterans Guide for more assistance.
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