Dreaming of homeownership but worried your budget only stretches to a manufactured home? You’re not alone—and you may be wondering if VA loans can help you purchase one. With more veterans considering affordable housing options, this is an important question as it could open doors to homeownership that once seemed out of reach.
In this article, we’ll explore whether VA benefits cover manufactured homes, the eligibility requirements, and essential tips for a smooth buying process.
Related Video
Does VA Cover Manufactured Homes? Everything You Need to Know
If you’re a veteran or an active-duty service member interested in affordable and flexible housing, you might be wondering: Does the VA loan program cover manufactured homes? The simple answer is yes—the Department of Veterans Affairs (VA) does allow eligible borrowers to use VA loans to purchase manufactured homes (often called mobile homes), but there are specific requirements and some unique challenges compared to buying a traditional house. Let’s break down what you need to know to make the most of your VA benefits.
Understanding VA Loans for Manufactured Homes
What is a Manufactured Home?
First, let’s clarify what we mean by “manufactured home.” A manufactured home is built in a factory according to strict federal building standards, then transported to the home site. These homes differ from traditional site-built houses, but they offer a cost-effective path to homeownership.
- Manufactured home: Built after June 15, 1976, meets HUD standards.
- Mobile home: Built before June 15, 1976, does not meet current safety standards.
- Modular home: Built in sections in a factory but assembled on-site like a traditional home. These often qualify as traditional homes for loan purposes.
Can You Buy a Manufactured Home with a VA Loan?
Yes, as an eligible applicant, you can use a VA loan to:
- Buy a new or existing manufactured home.
- Purchase the manufactured home and the land it will sit on.
- Refinance an existing loan for a manufactured home and/or land.
- Buy and improve the property at the same time.
VA Loan Requirements for Manufactured Homes
Buying a manufactured home with a VA loan is a little different from buying a conventional house. Here’s what you need to consider:
1. The Home Must Meet VA Requirements
Manufactured homes must satisfy both VA guidelines and local building codes. Key requirements include:
- The home must be permanently affixed to a foundation (no wheels or axles).
- The property must be classified as real property (not personal property).
- The home must be your primary residence.
2. Age and Size of the Home
- Typically, the home should be new or only slightly used. Older manufactured homes can be harder to finance.
- There may be minimum size requirements—usually at least 400 square feet for singlewide and 700 square feet for doublewide units.
3. Land Ownership
You can use a VA loan to buy both the manufactured home and the land. If you already own the land, you may finance only the home. Leasing the land is possible, but the lease must meet VA standards (often requiring a long-term lease).
4. Lender Requirements
Not all VA-approved lenders offer loans for manufactured homes. Lenders that do may have their own stricter requirements regarding:
- Credit score minimums
- Down payment expectations (even with a VA loan, some lenders require a small down payment for manufactured homes)
- Loan term limitations
5. Loan Terms
- The maximum loan term is often shorter:
- Up to 20 years and 32 days for a single-wide unit or a lot.
- Up to 23 years and 32 days for a double-wide unit and the lot.
- Standard VA loans for site-built homes often allow up to 30-year terms.
The VA Manufactured Home Loan Process
Here’s a simplified overview of the steps involved in getting a VA loan for a manufactured home:
- Check Your VA Loan Eligibility
- You must be a qualified veteran, active-duty service member, or eligible surviving spouse.
-
Obtain your Certificate of Eligibility (COE).
-
Find a VA-Approved Lender
-
Search specifically for lenders that work with manufactured homes.
-
Search for Eligible Properties
-
Look for homes that meet VA and local building code requirements.
-
Get Preapproved
-
This helps you understand your budget and strengthens your offer.
-
Make an Offer and Sign a Purchase Agreement
- Once you find the right property.
- Home Appraisal and Inspection
-
The VA requires an appraisal to determine value and verify the home meets safety/structural standards.
-
Finalize the Loan
- Provide all necessary documentation to your lender.
- Complete closing paperwork, and the home is yours.
Benefits of Using a VA Loan for Manufactured Homes
VA loans offer significant advantages—even for manufactured homes. Here are some key benefits:
- No Down Payment Required: VA loans typically don’t require a down payment, helping you save upfront.
- Competitive Interest Rates: VA loan rates are often lower than conventional loans.
- No Private Mortgage Insurance (PMI): You don’t pay monthly insurance premiums, reducing your overall cost.
- Flexible Credit Requirements: VA loans allow for more flexible credit standards.
- Ability to Finance Land and Home: You can buy both the house and the land together in one loan.
Challenges When Buying a Manufactured Home with a VA Loan
While the benefits are compelling, using a VA loan for a manufactured home does come with some unique challenges:
1. Fewer Lenders
- Not all VA lenders finance manufactured homes. You may need to shop around more to find one that does.
2. Stricter Property Requirements
- The home must be classified as real property and permanently affixed, which may require additional upgrades or paperwork.
3. Loan Term Limits
- Shorter repayment periods can mean higher monthly payments compared to site-built homes.
4. Resale Value
- Manufactured homes often appreciate less than traditional homes, which may impact resale or refinancing options.
Practical Tips and Best Practices
To improve your chances of a smooth VA manufactured home loan experience, consider the following:
- Start Your Lender Search Early: Focus on lenders with a track record of funding VA manufactured home loans.
- Get Preapproved: This will clarify your budget and help you identify potential property issues early.
- Double-Check Property Eligibility: Ensure any home you consider meets both VA and local rules.
- Review Land Ownership and Lease Terms: If you plan to lease land, confirm the lease is long enough to satisfy VA rules.
- Budget for Extra Costs: Some manufactured home purchases require foundation work or land improvements to meet VA standards.
- Get a Certified Home Inspection: This helps avoid surprises and ensures the property is safe and in good condition.
Summary
You can use a VA loan to purchase a manufactured home, but you’ll face more requirements and quirks than if you were buying a traditional home. Still, with its zero-down-payment option, no PMI, and flexible terms, the VA loan can be an excellent tool for affordable homeownership—if you do your homework.
Be proactive: find a VA lender experienced in manufactured homes, confirm property eligibility, and budget for any foundation or land improvements. With proper planning, your VA benefits can open the door to the affordable, comfortable home you deserve.
Frequently Asked Questions (FAQs)
1. Can I use a VA loan to buy a used manufactured home?
Yes, you can buy a used manufactured home with a VA loan, but it must meet the VA’s property standards and be classified as real property. Some lenders prefer newer homes, so check lender policies.
2. Does the home have to be permanently attached to the land?
Absolutely. The home must be permanently affixed to a foundation and titled as real estate (not personal property) to qualify for a VA loan.
3. Can I buy the manufactured home and land together with one VA loan?
Yes, many borrowers use the VA loan to buy both the manufactured home and the land in a single transaction. This is a popular option and is generally more straightforward than buying only the home.
4. Are VA loans available for manufactured homes in mobile home parks?
Possibly, but the land lease must be long-term and meet VA guidelines. The lender may have additional requirements for properties in parks or on leased land.
5. Why do some lenders not offer VA loans for manufactured homes?
Some lenders avoid these loans due to stricter property standards, shorter maximum loan terms, and perceived higher risk. If you’re interested, search specifically for lenders who work with VA manufactured home loans.
If you’re eligible for a VA loan and interested in manufactured homes, you’re not alone—and with the right information, you can confidently navigate the process.
