can you get a va loan on a manufactured home

Yes, it is possible to secure a VA loan for the purchase of a manufactured home. However, there are certain eligibility requirements and guidelines that need to be considered. Let’s explore the details below.

VA Loan Requirements for Manufactured Homes

The Department of Veterans Affairs (VA) has established specific criteria for obtaining a VA loan on a manufactured home. These requirements include:

  • The home must be classified as real estate and permanently affixed to a foundation.
  • It should be titled as real property and not categorized as personal property.
  • The home must meet the minimum size requirements, typically having a minimum of 400 square feet.
  • The manufactured home should be a single-family residence, with additional limitations depending on the number of units.
  • The property should have adequate access to utilities such as water, electricity, and sewerage.
  • Manufactured homes should adhere to certain safety standards, including compliance with the HUD code.

Meeting these requirements is crucial to qualify for a VA loan on a manufactured home.

VA Loan Eligibility

In addition to the specific requirements for the manufactured home, borrowers must also meet the general eligibility criteria set by the VA for obtaining a loan. This includes:

  • Serving the minimum length of service, typically 90 consecutive days during wartime or 181 days during peacetime.
  • Having an honorable discharge or meeting specific requirements for active duty personnel.
  • Obtaining a Certificate of Eligibility (COE) from the VA.
  • Meeting the qualifying credit score, income, and debt-to-income ratio.
  • Getting the manufactured home appraised by a VA-approved appraiser.

Loan Limits and Terms

Just like with other types of VA loans, there are loan limits for VA loans on manufactured homes. The loan limits vary depending on the location of the property. Borrowers can check the VA’s website or consult with a VA-approved lender for the current loan limits in their area.

The terms and interest rates for VA loans on manufactured homes are similar to those for traditional home loans. The repayment period can range from 15 to 30 years, and the interest rate depends on market conditions and the borrower’s creditworthiness.

Benefits of VA Loans on Manufactured Homes

Opting for a VA loan on a manufactured home offers several advantages, including:

  • No down payment requirement, subject to loan limits and eligibility.
  • No private mortgage insurance (PMI) requirement, unlike conventional loans.
  • Competitive interest rates and terms.
  • Flexibility in refinancing options with VA’s interest rate reduction refinance loan (IRRRL) program.
  • Assistance from the VA to negotiate with the lender in case of financial hardship.

Other Financing Options

If a borrower does not meet the eligibility requirements or criteria for a VA loan on a manufactured home, there are alternative financing options available. These include:

  • FHA loans for manufactured homes, which are insured by the Federal Housing Administration.
  • Conventional loans, where borrowers can explore options from various lenders based on their creditworthiness and financial situation.
  • Personal loans or financing through the manufactured home retailer, although these may come with higher interest rates and shorter repayment terms.

In conclusion, VA loans can be used to finance the purchase of a manufactured home, provided the property meets the VA’s requirements and the borrower meets the eligibility criteria. It’s important to consult with a knowledgeable VA lender to understand the specific guidelines and options available for financing a manufactured home with a VA loan.