Thinking about buying a manufactured home and wondering if you can use a VA loan? You’re not alone—many veterans and service members are searching for affordable housing options and want to know if their VA benefits can help.
This question matters because VA loans offer great perks, like zero down payment and competitive rates. In this article, we’ll take a close look at whether VA loans cover manufactured homes, what’s involved, and key tips to guide your decision.
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Can You Use a VA Loan to Buy a Manufactured Home?
Absolutely! You can use a VA loan to purchase a manufactured home, provided you meet both the standard VA loan requirements and the guidelines specific to manufactured housing. Over the years, the Department of Veterans Affairs (VA) has expanded its loan programs to make homeownership more accessible for veterans, service members, and qualifying spouses—including those interested in manufactured and modular homes.
Let’s break down what that really means, how it works, and what you need to know before starting the process.
Understanding Manufactured Homes and VA Loans
Manufactured homes (sometimes called mobile homes) are built in a factory and moved to a plot of land, unlike traditional site-built houses constructed on location. VA loans can be used to buy, refinance, or improve these types of homes under certain conditions.
What Qualifies as a Manufactured Home for VA Loans?
To be eligible, a manufactured home must:
- Be built after June 15, 1976 (when HUD’s construction standards began)
- Have a permanent foundation and be affixed to land
- Meet HUD standards for safety and construction
- Be classified as real property, not personal property
Modular homes—built in sections off-site but assembled on a traditional foundation—also qualify under VA loan guidelines.
Steps to Get a VA Loan for a Manufactured Home
Buying a manufactured home with a VA loan involves a few more steps and requirements than a traditional home purchase. Here’s what you can generally expect:
1. Confirm Your Eligibility
Before anything else, ensure you meet VA loan eligibility requirements. These typically include:
- Serving a minimum period in the military (active duty, Reserve, or National Guard)
- Receiving an honorable discharge (in most cases)
- Getting a Certificate of Eligibility (COE) from the VA
2. Set Your Homeownership Goals
Decide whether you want to:
- Purchase a manufactured home and land together
- Buy a manufactured home to place on land you already own
- Refinance or improve an existing home
What you want to do affects the process and the paperwork involved.
3. Locate a VA-Approved Lender
Not all mortgage lenders handle VA loans for manufactured homes. Some only work with traditional properties. Find lenders experienced with manufactured homes—they’ll guide you through the requirements and help avoid potential roadblocks.
4. Find a VA-Eligible Manufactured Home
As you shop, keep these points in mind:
- The home must be on a permanent foundation.
- It needs to meet all VA, HUD, and local building codes.
- The home must be considered real estate (not just a movable structure).
- Homes generally can’t have been moved from a prior foundation to a new site.
5. Finance the Home and Land (if needed)
You can apply for a VA loan to buy a home, land, or both at the same time. The lender will arrange an appraisal and check the property’s value and condition.
6. Get a VA Appraisal and Underwriting Approval
The VA requires an official appraisal to ensure the home’s value and verify that it meets Minimum Property Requirements (MPRs), including things like:
- Adequate heating, plumbing, and electrical systems
- A sturdy and permanent foundation
- Compliance with local zoning and building codes
If the home passes—the underwriting process moves forward.
7. Close on Your Loan
Once all conditions are met and the loan is approved, you’ll close on your new manufactured home—often with little to no money down.
Benefits of Using a VA Loan for Manufactured Homes
Buying a manufactured home with a VA loan comes with significant advantages, including:
- No Down Payment Required: In many cases, you can purchase a home with $0 down, as long as the appraised value matches the sales price.
- Competitive Interest Rates: VA loans typically offer lower rates than conventional mortgages.
- No Private Mortgage Insurance (PMI): You won’t pay monthly PMI, helping keep housing costs down.
- Flexible Credit Requirements: VA loans generally have more relaxed standards for credit scores and past financial hiccups.
- Reusable Benefit: Your VA loan entitlement can often be used again in the future, subject to eligibility.
Common Challenges and Limitations
While VA loans for manufactured homes offer great perks, they do come with some unique hurdles:
More Stringent Property Standards
- The home must be affixed to a permanent foundation.
- It must be safely accessible year-round with working utilities.
- Manufactured homes moved from another location rarely qualify.
Fewer Lenders
- Not all lenders offer VA loans for manufactured housing. Some national mortgage companies focus only on site-built homes.
Shorter Loan Terms
- VA loans for manufactured homes sometimes carry shorter repayment periods than conventional loans for single-family homes (typically 20-25 years vs. 30).
Depreciation Concerns
- Manufactured homes may depreciate in value over time, which can complicate refinancing or resale.
Tips for a Smooth VA Loan Process with Manufactured Homes
- Research Lenders Early: Ask specifically about their experience and willingness to underwrite VA loans for manufactured homes.
- Get Pre-Qualified: This helps set a realistic budget and shows sellers you’re serious.
- Check Foundation Requirements: Work with professionals to ensure the home meets VA rules for a permanent foundation.
- Verify Title and Property Status: Make sure the home is legally classified as real estate in your state.
- Review Loan Terms: Ask about the length of the loan and any fees or rate adjustments that might apply.
- Understand Resale Implications: Since manufactured homes may not appreciate like traditional homes, choose your location and model carefully.
- Work With a Veteran-Friendly Realtor: Someone experienced in VA loans can spot potential roadblocks before they become major issues.
Key Points to Remember
- Not All Homes Qualify: Homes must meet VA guidelines, and you may face limited options, especially for pre-owned units or certain locations.
- Permanent Foundation is Critical: Without it, the VA will not back the loan.
- Loan Process Can Take Longer: More inspections and documentation are sometimes required.
Frequently Asked Questions (FAQs)
Can I buy just a manufactured home with a VA loan, or do I need to purchase the land, too?
You can use a VA loan to purchase the home and land together, or to buy a home for placement on land you already own. The key is that the home must be permanently attached to its foundation and classified as real estate.
Are there special restrictions on manufactured homes that don’t apply to traditional houses?
Yes. Manufactured homes must be built after June 15, 1976, meet HUD standards, and be attached to a permanent foundation. Homes that have been moved from one site to another usually are not eligible.
Do all VA lenders finance manufactured homes?
No. Many lenders do not offer VA loans for manufactured homes because of the unique risks and extra requirements involved. It’s important to shop around and find lenders with experience in this area.
Can I use my VA loan benefit more than once, even for manufactured homes?
Yes, your VA loan benefit is reusable as long as you meet eligibility and entitlement guidelines. You can use it to purchase a manufactured home, sell that home later, and use your remaining entitlement for future purchases.
Do manufactured homes qualify for VA cash-out refinancing or improvement loans?
In some cases, yes. You may be able to use VA refinance programs or improvement loans for manufactured homes if the property still meets VA guidelines for permanent foundation, age, and classification as real estate.
Conclusion
Obtaining a VA loan for a manufactured home is entirely possible, but it requires more preparation and careful planning than buying a traditional house. While you’ll enjoy the core benefits of the VA loan program—such as zero down payment, no PMI, and competitive rates—you’ll also face tighter property restrictions and may need to search a bit harder for a cooperative lender.
Stay proactive: partner with seasoned VA lenders and real estate agents, stay informed about requirements, and double-check property status before making any decisions. With the right guidance and diligence, your dream of affordable homeownership with a VA loan and manufactured home is well within reach.
