Thinking about financing a manufactured home with a VA loan, but unsure if a previously moved home qualifies? You’re not alone—many buyers wonder about this often-overlooked detail, which can make or break a purchase.
Understanding VA rules around relocated manufactured homes is crucial before you start house hunting or make an offer. In this article, we’ll clarify the VA’s policy, explain why it matters, and share practical tips to help you navigate your home buying journey with confidence.
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Does the VA Allow Manufactured Homes That Have Been Moved?
If you’re considering using a VA loan to purchase a manufactured home, you may wonder if a home that has been moved from its original location is eligible. This is a common scenario—after all, manufactured homes are built to be transported. However, VA loan rules about moved manufactured homes are very specific. Understanding these rules is key to planning your VA loan process and avoiding surprises.
The Short Answer
No, the VA generally does not allow loans for manufactured homes that have been moved more than once.
If a manufactured home has ever been moved from its original foundation to another site, that typically makes it ineligible for VA financing. Even if the move happened years ago or the structure is perfectly sound, the rule still applies.
Let’s break down why this rule exists, what it means for your home-buying journey, and how to navigate the process.
Why the VA Restricts Moved Manufactured Homes
The VA’s manufactured home guidelines prioritize the structural integrity and long-term durability of the property. When these homes are transported—especially more than once—the risk of damage or issues with setup increases.
Key Reasons Behind the Rule
- Structural Concerns: Transporting a manufactured home, even professionally, can cause wear and tear to the structure, including unseen damage to the frame, roof, or mechanical systems.
- Property Security: The VA wants to ensure the home you purchase is a sound, long-term investment and safe living space.
- Resale Considerations: Lenders face more risk with homes that have been moved, as these may be harder to sell again if they must recover costs.
VA guidelines require that a manufactured home must be affixed to a permanent foundation at its first site. If it’s moved to a new foundation elsewhere, it generally becomes ineligible.
What Counts as “Moved More Than Once”?
The VA typically considers two or more moves as “moved more than once.” Here’s what you need to know:
- First Move: From the manufacturer to its first permanent site is not counted as a disqualifying move.
- Second Move (Or More): Any subsequent move—from the initial site to another—is counted as a second move, making the home generally ineligible for VA financing.
Example
- Eligible: Manufacturer → Dealer’s lot → First permanent site.
- Ineligible: Manufacturer → Dealer’s lot → First site → Second site.
Even if the home was only moved once after being set up at its initial location, it typically will not qualify.
How the VA Verifies a Manufactured Home’s History
Lenders approved by the VA are responsible for verifying the history of the home.
Common Verification Steps
- Title Search: Checks records for previous moves or locations associated with the manufactured home’s VIN (Vehicle Identification Number).
- Affidavit of Affixture: Verifies when and where the home was first affixed to a permanent foundation.
- HUD Data Plate/Label: Confirms the home’s manufacturing details and transport history.
If records indicate the home has been transferred and affixed at more than one permanent location, VA lenders will likely deny the loan application.
Benefits and Challenges of VA Loans for Manufactured Homes
While the VA is strict about moved homes, financing manufactured homes through the VA still offers unique advantages compared to other loan types.
Benefits
- No Down Payment: Qualified buyers can finance 100% of the purchase price, minimizing upfront costs.
- Competitive Rates: Enjoy lower interest rates than many conventional loan options.
- No Private Mortgage Insurance (PMI): Save monthly by not having to pay PMI.
- Flexible Credit Standards: The VA often has more lenient credit requirements.
Challenges
- Property Eligibility: The home must meet strict criteria—permanent foundation, single move, proper title, and compliance with HUD standards.
- Lender Availability: Not all VA lenders finance manufactured homes, so options may be limited.
- Appraisal Requirements: The home must pass a VA appraisal to ensure it’s safe, sanitary, and structurally sound.
What If You Already Own or Are Considering a Moved Manufactured Home?
If you’re eyeing a manufactured home that’s been moved, here’s what you can do:
1. Verify the Move Record Early
Ask for the home’s title history and confirm with the owner whether it’s been moved. Look for documentation such as the HUD Data Plate, Deed, or Title Certificate.
2. Communicate With Lenders
Some lenders have more detailed documentation or local guidelines—talk to your VA-approved lender before falling in love with a property.
3. Explore Alternatives
If VA financing isn’t possible:
- Consider FHA or USDA Loans: Some may allow for more flexibility on moved homes. Check their guidelines.
- Conventional Financing: Some lenders may accept homes that have been moved, but likely with tighter requirements and higher down payments.
- Seller Financing: If traditional financing falls through, the seller may be willing to offer direct terms.
4. Consult a Real Estate Professional
Work with an agent familiar with manufactured homes and VA guidelines. They can help you avoid ineligible properties and streamline the buying process.
Best Practices When Using a VA Loan for a Manufactured Home
If you want to maximize your chance of VA approval, keep these tips in mind:
- Prioritize Newer Homes: Homes built after June 15, 1976, qualify as “manufactured homes” and meet HUD standards.
- Insist on Detailed Records: Ask sellers for full documentation, including the home’s history and any moves.
- Hire an Experienced VA Lender: Choosing a lender familiar with manufactured home loans increases your odds of a smooth process.
- Understand Foundation Rules: The home must be affixed to a permanent foundation (not just on blocks or piers).
Navigating Common Pitfalls
Many applicants run into trouble because they underestimated how strictly the VA enforces the movement rule. Don’t get caught off guard—being proactive makes a big difference.
Common Mistakes
- Assuming Age Equals Ineligibility: Some buyers think only home age matters; in reality, the move history is just as crucial.
- Overlooking Foundation Requirements: Even if the home hasn’t moved, lack of a proper permanent foundation can derail VA eligibility.
- Not Checking for Dealer Moves: Moving from manufacturer to dealer, then to a single permanent site is generally fine. Additional moves are not.
Summary
To sum up:
The VA does not allow manufactured homes that have been moved more than once (excluding transit from the factory to the initial site) to be financed with a VA loan. The primary goal is to ensure your home is secure, structurally sound, and a sound financial investment.
While this may limit your options, being informed early in your home search will save you time and frustration. Work closely with VA-savvy lenders and real estate professionals, confirm history before making an offer, and remember that other loan options may be available if a moved home is your only choice.
Frequently Asked Questions (FAQs)
1. What counts as moving a manufactured home more than once under VA rules?
A home is considered “moved more than once” if it has been placed on a second permanent site after its original installation. Moving the home from the factory to the dealer or from the dealer to the first site is not disqualifying. Any further site moves typically make it ineligible for a VA loan.
2. Are there any exceptions to the VA’s moved home rule?
Exceptions are extremely rare and generally not permitted. The VA’s guidelines are strict to protect the buyer, the property’s integrity, and the interests of the lender. It’s wise to assume that any manufactured home moved from its original foundation is ineligible.
3. How can I find out if a manufactured home has been moved?
Request a copy of the home’s title and look for any transfer details or previous locations. Ask the seller for documentation and check the property’s HUD label or Data Plate for clues. Your lender will also perform a title history check during the loan process.
4. Is moving a manufactured home to add a basement, new foundation, or for repairs considered a disqualifying move?
Yes, under most VA lender interpretations, moving the home—even for upgrades or repairs that require changing sites—means the home is no longer eligible for VA financing. The home must remain on its original foundation.
5. Can I use a VA loan to purchase a manufactured home in a park or leased land?
Yes, the VA allows manufactured homes on leased land, such as a park or community, as long as the lease meets VA requirements. The home still must not have been moved more than once and must meet all other VA property standards regarding foundation, title, and safety.
With a clear understanding of VA requirements, you can approach your manufactured home search confidently. Knowing what to expect and how to verify eligibility will streamline the process and help you achieve your goal of homeownership with a VA loan.
