For many veterans and active-duty service members, the dream of home ownership can seem out of reach, particularly in today’s changing housing market. But did you know that the U.S. Department of Veterans Affairs (VA) also lets you purchase a home with a manufactured mortgage? Yes, you can use your VA benefits not only to purchase traditional homes, but also to buy manufactured and modular homes, cost-effective, accessible and visually appealing in a post-modern world.
This article covers what you need to know about getting a VA loan for manufactured homes and how it might be the perfect solution for your homeownership aspirations.
What Is a Manufactured Home?
A manufactured home (also known as a mobile home) is constructed in a factory, and then is transported to a piece of land where it is set down on a permanent foundation. These HUD approved homes are designed for easy care and easy upkeep, from 1,800 to 2,559 square feet and can be single, double or triple wide manufactured homes providing enough space for your needs.
Modular homes are installed to conform to all state and local building codes, while manufactured homes are built entirely off-site. Even so, they’re both still economically viable ways for buying a home, particularly in states such as Texas that has plenty of land remaining to develop for private use.
Can You Use a VA Loan for Manufactured Homes?
Yes, you can! The VA does permit eligible borrowers to use their benefit to purchase a manufactured home. But there are some stipulations:
- The home must be permanently affixed to a foundation.
- It must meet HUD and local building standards.
- You must live in the home as your primary residence.
- The property must be classified as real estate, not personal property.
If you want to build a modular home, a VA loan can be used, although how the structure is classified and fastened will determine if you’re eligible.
Why Choose a VA Loan?
There are a number of benefits to the VA loan program that make it one of the most attractive financing options for military home buyers:
- Zero down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates
- Flexible credit score requirements
- Closing cost limits and protections
Those benefits also apply to manufactured homes, so VA loans are a great resource for veterans who want a more affordable and customizable housing choice.
Steps to Get a VA Loan for a Manufactured Home
- Confirm Your VA Loan Eligibility
Start by getting your Certificate of Eligibility (COE) from the VA website or through an approved lender. - Find the Right Land
If the home isn’t already placed, you’ll need to purchase land. If you’re unsure where to begin, here’s a helpful guide on where to buy land in Texas. - Select a VA-Approved Lender
Not all lenders offer VA loans for manufactured homes. Make sure to choose a lender experienced in this area. Some even offer special programs like Rate Drop Advantage, helping you refinance quickly when rates fall. - Choose the Right Builder and Home Type
Whether you’re looking for a new manufactured home or building a modular one, partnering with the best Texas home builders can ensure high-quality results. - Get Preapproved
Preapproval gives you an estimate of your loan amount and strengthens your offer when negotiating. - Place and Secure the Home
Ensure the home is installed on a permanent foundation and meets all local and federal standards. - Close the Loan and Move In
Once the VA and lender requirements are met, you’ll close on the loan and move into your new home.
Building vs. Buying: What’s Right for You?
While veterans can often save time by purchasing a manufactured home that’s already built, many veterans do the opposite and instead build their dream home from scratch, laying the literal foundation of their life and legacy. If you find yourself in this boat, you might check into VA Construction Loans, these offer options where both the construction and the permanent mortgage can be financed with one loan. This is a perfect choice if you’re planning to personalize your home to suit your needs.
Or, if you have a piece of land already and you want to build a house on it you should activity seek a loan to build a house on my land, this sounds like a really good way to invest in property and a well-made property too.
Finding the Right Builder
Quality is particularly important when you are spending your hard-earned VA benefits. Just ensure you are working with best quality house builder so your home can last for many years and avoid expensive repairs. Many builders today will even provide a degree of home customization, even with manufactured homes, so you can make your space your own without breaking the bank.
But if you’re considering the advantages of manufactured homes and desire a wide-open living space, triple wide manufactured homes provide some of the largest floor plans in the business and high-end finishes that are miles beyond a traditional single family home.
VA Loan Limits for Manufactured Homes
VA loans technically have no “loan limit,” but lenders can set their own cap based on your credit profile and income. Mobile homes are an extremely economical way to purchase a new home, with prices that are typically far less than that of a traditional home, and they offer more square footage for your dollar.
Note that interest rates can differ slightly for manufactured homes versus traditional construction. That’s all the more reason to deal with savvy lenders and consider incentives like Rate Drop Advantage to secure the best possible deal now or down the road.
Final Thoughts
Utilizing a VA loan to purchase a manufactured home may be an excellent way to realize the dream of home ownership with reasonable interest rates and financing available for closely-scraped properties with faster build times or more personalized construction. With the right lender and guidance from trusted advisors, your Dream Home can be a reality, without sacrificing quality or value.
If you’re serious about exploring your options, begin by researching your eligibility, then finding land and reaching out to reputable builders. Whether you want to purchase a finished home or build from the ground up, your VA loan benefit allows you to take those next steps, today, toward permanent, affordable and attainable homeownership.