The VA loan program makes it easier for veterans and active-duty service members to realize the dream of homeownership. Most people know about VA loans and single family homes, but if you don’t know, there’s a growing emphasis on less ‘typical’ home purchases like mobile homes. But here’s the big question: Can you purchase a manufactured home with a VA loan? The short answer is that yes, you can, but there a few caveats. In this guide, we’re making sense of it all so you can make a decision about how you want to feel.
What Is a Manufactured Home?
A mobile home is a factory-built home built before June 15, 1976, that conforms to the federal code in effect on the date the home was manufactured. These homes are prefabricated in a factory and then brought to the property where they are set up. Manufactured homes, in contrast to mobile homes, also subject to and meeting codes, but with weaker standards that are frequently considered to be personal property, can be considered real property when they are appropriately installed on a permanent foundation.
VA Loans and Manufactured Homes: How It Works
The Department of Veterans Affairs does permit VA loans on the purchase of manufactured homes, but these are conditions:
- The house also needs to be on a permanent foundation.
- You’ll need to already own, or have plans to buy the land the home will be placed on for this option.
- The manufactured property must comply with all HUD safety standards and VA property requirements.
- The lender will have to be VA approved builders and provide financing for manufactured homes (not all lenders do).
This adaptability is a big reason why Vets home loan are a very tempting and viable option for those who want to find more reasonable or rural housing options.
Why Choose a VA Loan for a Manufactured Home?
Here are a few good reasons why you might want to use a VA loan to buy a manufactured home:
- Zero down payments: VA loans typically require no down payment, saving buyers a huge upfront cost.
- No private mortgage insurance (PMI): This helps lower your monthly mortgage bill.
- Competitive interest rates: Often lower than conventional loans.
- Flexible credit requirements: More lenient for those with lower credit scores.
If you want a little more opportunity for flexibility say, building a new house rather than purchasing one on the market then consider a VA Construction Loan, which can also be used to build a manufactured or modular home from the ground up.
Key Requirements for a VA Loan on a Manufactured Home
Before you apply, make sure your property is eligible for the VA loan:
- Size and Configuration Single-wides must be at least 400 square feet, while double-wides must be 700 square feet or more.
- Permanent Installation: The permanent installation of the manufactured home must have it labeled and classified as “Real Property”.
- Utilities and Access : The land must have sufficient utilities, water, sewage and accessibility by road.
- Land Ownership: You will either own your land free and clear or roll your land purchase into your loan.
Don’t have land yet? This is a guide of where to buy land in Texas, specifically where to buy land and place a manufactured home in the Lone Star State.
Manufactured vs Modular Homes: What’s the Difference?
While mobile homes are constructed to HUD code, modular homes are grown to local state codes and are almost impossible to tell from a regular home. Modular homes may also be easier to finance through the VA, and frequently get better appraisal values.
If this is the route you choose, check out our complete guide to Building a Modular Home with VA loan benefits for veterans and military.
Finding the Right Builder for Your Manufactured Home
The right builder is essential. Seek companies that have experience working with borrowers who have VA loans, and are willing to tailor their service based on your budget and lifestyle.
Many are found in Texas the state you declared was crazy where there are plenty of experienced builders. You can also find out more about Texas home builders and Texas home manufacturers.
Looking for more space for your family? Then consider Triple Wide Manufactured Homes where a little more space and comfort is still possible under the VA guidelines.
How to Purchase a Manufactured Home with a VA Loan
- Check your eligibility: Obtain your Certificate of Eligibility (COE) from the VA.
- Find a VA-approved lender: Not all lenders finance manufactured homes, so choose wisely.
- Get pre-approved: Determine your budget before shopping for homes or land.
- Choose your home and land: Ensure both meet VA requirements.
- Appraisal and Inspection: VA will require an appraisal and potentially an inspection to ensure the home is up to standard.
- Close on your loan: Once all steps are complete, you can move into your new home.
Already Own Land? Build Instead
If you already have land and want to build a home to your specifications, consider a Loan to Build a House on My Land. This could be a good choice if you’re looking to construct a manufactured or modular home with custom home features and look big-picture perspective Better fit: With a site-built home, your foundation and footings are custom to your home, making it the best fit to your location.
Lower Your Rate Over Time
One last suggestion: Monitor interest rates even after you have bought your home. VA loans may also be eligible for streamlined refinancing, such as through the Rate Drop Advantage program, enabling you to reduce your monthly mortgage payments with minimal paperwork.
Final Thoughts
So, is it possible to get a manufactured home with a VA loan? Absolutely. VA loans offer an incredibly effective option towards owning a manufactured home for eligible veterans and service members. So, while proper planning, the right builder and a VA-approved lender makes all the difference, you can have the dream of homeownership, affordably and comfortably.
Whether you are starting fresh or seeking your next mission, educate yourself about your options and utilize all the VA-backed tools at your disposal. It could be your dream home in the making.