can you buy a manufactured home with a va loan

Yes, you can buy a manufactured home with a VA loan. The Department of Veterans Affairs (VA) offers VA loans, which are mortgage loans guaranteed by the federal government, to eligible veterans, active-duty personnel, and surviving spouses. While VA loans are typically associated with traditional homes, they can also be used to finance the purchase of manufactured homes.

Manufactured Homes and VA Loans

A manufactured home, also known as mobile or trailer homes, is a prefabricated dwelling that is built off-site and then transported to a permanent location. Financing options for manufactured homes may differ from those for traditional homes, but veterans and active-duty personnel can still take advantage of their VA loan benefits to purchase a manufactured home. Here’s what you need to know:

  • VA loans can be used to buy a manufactured home, including single-family, double-wide, and triple-wide homes.
  • The home must be classified as real property, meaning it is permanently affixed to a foundation and meets all local and state building codes.
  • The borrower must intend to use the manufactured home as their primary residence.

It’s essential to work with a lender who is experienced in VA loans for manufactured homes, as they will have the knowledge and expertise to guide you through the process.

Eligibility Requirements for VA Loans and Manufactured Homes

In order to qualify for a VA loan to purchase a manufactured home, you must meet certain eligibility criteria. These requirements are similar to those for traditional homes but with some additional considerations:

  1. You must be an eligible veteran, active-duty service member, or surviving spouse.
  2. The manufactured home must be affixed to a permanent foundation and meet local and state building codes.
  3. You must have a valid Certificate of Eligibility (COE) from the VA to prove your eligibility for the loan.
  4. The manufactured home must be titled in your name or in the process of being titled in your name.

It’s important to note that VA loans for manufactured homes may have additional requirements or restrictions depending on the lender and the specific circumstances. Consulting with a knowledgeable lender will help ensure you meet all the necessary criteria.

VA Appraisal and Inspection Requirements

When purchasing a manufactured home with a VA loan, the property must undergo an appraisal and inspection to ensure it meets the VA’s minimum property requirements. These requirements include:

  • The home must have a permanent foundation and be anchored according to local regulations.
  • It must be in good condition, free from defects that could affect safety, structure, or livability.
  • The electrical, heating, plumbing, and ventilation systems should be in proper working order.
  • The home should have adequate water and wastewater disposal systems.

During the appraisal process, the appraiser will also compare the manufactured home’s value to similar properties in the area to ensure it is not overpriced. This protects both the borrower and the VA.

VA Funding Fee for Manufactured Homes

Just like with traditional homes, VA loans for manufactured homes may require a funding fee. The VA funding fee is a one-time payment that helps offset the cost of the loan program. The fee amount depends on several factors, including the type of service, down payment amount, and whether it is the borrower’s first VA loan or subsequent one. The funding fee can be rolled into the loan or paid upfront at closing.

VA Loan Type Down Payment Funding Fee
Purchase Loan None 2.3% (First-use)
Purchase Loan 5% – 9.99% 1.65% (First-use)
Purchase Loan 10% or more 1.4% (First-use)

These are general funding fee percentages, and it’s advisable to consult with a lender to determine the exact amount you may be required to pay.

Final Thoughts

Buying a manufactured home with a VA loan is indeed possible. However, it’s important to understand the specific requirements and processes associated with VA loans for manufactured homes. Working with a knowledgeable lender who specializes in VA loans will greatly facilitate your journey and increase the likelihood of a successful home purchase.