VA Loan for Manufactured Homes
Buying a manufactured home can be an affordable way to own property. If you qualify for a VA loan for manufactured home financing, you can use your VA loan to purchase not only the manufactured home but also the land it will sit on.
Veterans, active-duty service members, and others who meet the requirements set by the VA can use their loan benefits to make their purchases. In this guide, you’ll learn about the eligibility requirements, property standards, and loan process for buying a manufactured home, so you know what to expect when you apply for a VA loan.
- Veterans can use VA loans to purchase manufactured homes that meet the requirements set by the U.S. Department of Veterans Affairs and the lender.
- Manufactured homes generally must meet the VA’s Minimum Property Requirements, have a HUD tag and data plate, and span 400 or 700 square feet, depending on the model.
- Most lenders won’t finance manufactured homes that have been moved from one place to another.
- Lenders have different criteria, and not all will finance manufactured homes.
Can I Use a VA Loan To Purchase a Manufactured Home?
A VA loan is a government-backed home financing option only available to eligible active-duty service members and veterans. A VA loan can be used to purchase a manufactured home. However, the VA requires that the borrower purchase not just the manufactured home, but also the land on which it is affixed.
The following factors also influence eligibility:
- Lender considerations: VA loans are offered through private lenders, and borrowers must meet private lenders’ eligibility criteria. However, not all lenders will approve a VA loan for a manufactured home. Some have strict rules for manufactured homes, so talk to your lender before deciding on a manufactured home.
- Manufactured versus mobile homes: Manufactured homes must meet quality standards set by the U.S. Department of Housing and Urban Development. Those rules, established in 1976, ensure the homes can stand up to daily use, poor weather, and other environmental and safety concerns.
- Homes built before 1976: Getting VA financing for manufactured homes built before 1976 is challenging because of the stricter HUD requirements.
You can also seek a loan for a property that hasn’t been built yet. The VA may approve a loan if you provide the following:
- A floor plan
- Elevation plans
- Details about the interior workings of the home
- A foundation plan
VA loans can only be used for manufactured or mobile homes that meet the definition of real property, meaning that it is affixed to a permanent foundation.
VA Manufactured Home Guidelines
The VA’s guidelines for manufactured homes require the following:
- Permanent foundation requirement: Manufactured homes must be affixed to a permanent foundation to qualify for VA loans.
- Size requirements: The home must have a minimum of 400 square feet of living space for single-wide homes or 700 square feet for double-wide properties.
- Real property classification: The home must be considered real estate according to state law and comply with local zoning laws.
- Identification plates: Manufactured homes must display a “HUD tag” and a data plate inside the home with specific information about the home’s construction.
- VA Minimum Property Requirements: To protect the borrower’s interests, properties must meet these requirements. For example, homes must have appropriate grading so water drains away from the perimeter walls without pooling.
Will the VA Finance a Manufactured Home That Has Been Moved?
Getting a VA loan for a manufactured home that has been moved is particularly challenging, and most lenders will not finance these homes because they pose added risks and inspection challenges. The VA will allow you to finance a manufactured home only if it has been moved a maximum of one time, because one of the main qualifiers for buying a manufactured home is that it must be permanently affixed to land. Thus, if you purchase a manufactured home and have it moved to your property and onto a permanent foundation, you could still obtain a VA loan.
Modular Homes Versus Manufactured Homes
Modular homes differ from manufactured homes. For modular homes, the components are constructed in a factory and shipped to a site where builders assemble them and construct the home. Local codes apply to the construction.
On the other hand, manufactured homes are built entirely in a factory and shipped to a site where they are affixed to a foundation. The construction must meet standards imposed by the U.S. Department of Housing and Urban Development, rather than local codes.
Here are a few important takeaways to keep in mind about modular homes versus manufactured homes:
- Modular homes: These are assembled on-site and must meet local or state building codes rather than federal guidelines for manufactured homes.
- Financing modular homes: Modular homes are treated similarly to traditional homes for financing purposes. Since they are similar to site-built homes, the VA treats these homes as traditional properties and applies the same lending principles as those used for standard homes.
- Differences in eligibility for VA loans: Unlike manufactured homes, modular homes do not need to meet HUD standards but must conform to local building codes.
Common Challenges When Buying a Manufactured Home With a VA Loan
Buying a manufactured home with a VA loan is easy if the home is already on its own property and meets age and quality requirements, but not all do. Some of the issues you may run into when looking to purchase a manufactured home include:
- The age of the home: Older manufactured homes don’t always qualify for VA loans. They may not meet VA, HUD, or lender standards.
- Finding a lender: Not all lenders finance manufactured homes or offer VA loans for manufactured homes.
- Meeting local zoning guidelines: Local zoning guidelines may restrict the placement of manufactured homes, limiting your options for owning property to which you can affix your new home.
- Relocating the home: Financing relocated homes is usually difficult, though it is sometimes possible.
- Meeting lender and VA requirements yourself: If you have bad credit, most lenders won’t approve a loan. You must also meet all other requirements set by the VA or lender.
To avoid some of these issues, look for newer manufactured homes and talk to your lender first to ensure they offer VA loans for manufactured homes.
Secure Your Manufactured Home With a VA Loan
Using a VA loan to buy a manufactured home gives veterans a valuable opportunity to get onto the housing ladder with affordable housing and financing. However, the home must meet the VA property requirements and the lender’s criteria to qualify for a VA loan.
At Veterans Guide, we’re ready to help you through the VA loan process for manufactured homes. Our team is here to educate, inform, and guide you on this journey to homeownership. We can advise you about all the potential financing options and help you obtain the VA benefits you’re entitled to.
Contact us today to learn more.
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