Yes, VA home loans do cover manufactured homes. This is great news for veterans and active-duty military personnel who are interested in purchasing a manufactured home. The Department of Veterans Affairs (VA) offers home loan programs that allow eligible veterans to obtain financing for manufactured homes, making the dream of homeownership a reality.
1. Eligibility Requirements for VA Home Loans on Manufactured Homes
In order to qualify for a VA home loan on a manufactured home, you must meet certain eligibility requirements. Here are the key criteria:
- You must be an active-duty military member, veteran, or eligible surviving spouse.
- The manufactured home must be classified as real property and be affixed to a permanent foundation.
- You must have a valid Certificate of Eligibility (COE) from the VA.
- The manufactured home must meet the VA’s Minimum Property Requirements (MPRs).
It’s important to note that the VA does not guarantee loans for manufactured homes that are not classified as real property, such as those that are on leased land or considered personal property.
2. VA Loan Limits for Manufactured Homes
VA home loans have specific loan limits set by the VA. These limits determine the maximum amount of money you can borrow without having to make a down payment. The loan limits for manufactured homes vary depending on the location of the property.
For example, in most counties in the United States, the VA loan limit for a manufactured home is $822,375 for 2021. However, in high-cost counties, the loan limit can go up to $1,233,550. It’s essential to check the loan limits in your specific area to understand the maximum loan amount you can qualify for.
3. VA Funding Fee for Manufactured Home Loans
Just like with any other VA home loan, there is a funding fee associated with manufactured home loans. The funding fee helps to offset the cost of the VA loan program. The amount of the funding fee varies depending on factors such as your military service category, the size of your down payment, and whether this is your first VA loan or subsequent one.
Here’s a table outlining the funding fee percentages for manufactured home loans:
| Funding Fee Percentage | Down Payment | First Time Use | Subsequent Use |
|---|---|---|---|
| 2.3% | 0% – 4.99% | 2.3% | 3.6% |
| 1.65% | 5% – 9.99% | 1.65% | 3.3% |
| 1.4% | 10% or more | 1.4% | 1.65% |
4. VA Appraisal for Manufactured Homes
When purchasing a manufactured home with a VA loan, an appraisal is required. The VA appraisal ensures that the property meets the VA’s Minimum Property Requirements (MPRs) and is in good condition. The MPRs focus on the home’s safety, sanitation, and structural integrity.
It’s important to understand that the VA appraisal is not a substitute for a home inspection. While the appraisal does identify any major issues that may affect the home’s value, it does not provide a detailed examination of the home’s mechanical systems or appliances.
5. VA Streamline Refinance for Manufactured Homes
If you currently have a VA loan on a manufactured home and wish to refinance, the VA offers a streamline refinance program known as the Interest Rate Reduction Refinance Loan (IRRRL). This program allows you to refinance your existing VA loan to obtain a lower interest rate and potentially reduce your monthly mortgage payment.
The VA streamline refinance for manufactured homes follows the same eligibility requirements as the initial VA loan. It’s a streamlined process that requires minimal documentation and no appraisal, making it an attractive option for veterans looking to lower their loan costs.
In conclusion, VA home loans do cover manufactured homes, allowing veterans and active-duty military personnel to finance their purchase. By meeting the eligibility requirements, understanding the loan limits, considering the funding fee, and going through the appraisal process, veterans can take advantage of this opportunity to own a manufactured home.