Manufactured Home Loans Just Got More Attractive
Buying a manufactured home using VA loans has a multitude of great advantages, such as 100% financing and no private mortgage insurance.
The NO-PMI policy allows eligible veterans to save greatly on their monthly savings, thereby allowing the savings to purchase a larger home or with more features. These are simple reasons why to use the VA Loan on a manufactured home.
In order for everything to be a smooth success on this particular type of property when paired with a VA loan, you need to know the banker, broker, loan officer, and for that matter realtor and title company, are ALL well versed in closing Manufactured homes.
Choosing the wrong lender with little manufactured loan financing experience, could prove detrimental to your process.
Many clients that are looking to buy or refinance their loan apply at multiple banks who do not know how to properly close or know the pitfalls required to successfully close these homes.
You may already know this by know since you're currently looking to get approved.
Today’s manufactured homes are greatly improved, and while the VA requires homeowners to fix their property to a permanent foundation, it is a small requirement to make in order to qualify for the 100% manufactured VA loan process.
Another advantage for Veterans that currently own a Manufactured Home with an existing VA loan, you automatically qualify for the VA IRRL Loan.
The IRRL stands for “interest rate reduction loan”, this program will assist you in lowering your rate from other non-advantageous loan programs.
These are extremely attractive if you are on an FHA loan paying private mortgage insurance or on a Conventional Loan over 80% and also paying private mortgage insurance.
The 100% VA loan is designed to make your life easier! We have lenders who will approve and underwrite manufactured home loans with bad credit, even down to 530 credit score. Before you apply for a VA home loan, you may want to review a little more information below.
Checking Credit & Knowing Your Score.
As mentioned, veteran administration loans have exclusive benefits and before registering for one you want to make sure your credit is clear of any issues that could stop you from your final approval.
The crucial part is to determine if there are any errors on your credit report, should this be the case we have proven professionals that can help fix this prior to you closing your loan.
The last thing you want to do is apply for a manufactured home loan with errors on your credit report, turn-downs from other banks will occur and further deteriorate your credit score.
Thus it is important to know that every lender checks your documentation thoroughly.
However, the bankers scoring formula will determine whether you will be approved for a loan or not from the inaccuracies, therefore proofread your report before submission, and reach out to us to review this for you.
We have great success getting clients approved after bankruptcy, and even at times with credit scores down to 530.
Remember, the 100% VA Loans offered from the Veterans Administration office is the best loan available on the market today. Truly they want you to purchase a home that you can afford, which is why there are more options available to you than non-veterans.
Get Pre-Approved Beforehand
An important tip is to receive pre-approval for your manufactured VA home loan amount, not only do most Real Estate agents require a pre-approval letter before you can start house hunting, but this will overall save you incredible time in your search.
A VA Loan Pre-Approval letter gives you the confidence to start house hunting, hence finding the best home in the market.
Fixed or Adjustable Rate Loan
Which do you prefer? A fixed rate loan is going to be a bit higher than an Adjustable Rate Mortgage (ARM), whereas an ARM can start out lower for a period of time and then adjust up.
Keep in mind, the last 15 years we have had near record low rates, there is much talk of rates rising in the very near future. The rates will rise and so if you only plan to be in your home for 5 years or less, then you may consider it.
However, if you purchase your home with a low rate, you always have the ability to take a low fixed rate and keep it as a rental property in the future. In this case, having an adjustable loan with rates as low as they are could prove to be more costly.
What you choose depends on you. Thus you should do your research and consider your plans over the next few years.
By understanding the VA requirements, you are moving you one step closer toward getting your dream loan; do not fret it is easier than one thinks, here are ways to get 100% VA loans approval:
- Entitlement: All Veterans must qualify through honorable discharge and provide their eligibility papers. If you do not have your papers you can contact the Veterans Administration office directly. Eligibility is the key, this is the ability to satisfy the lender so as to be considered for VA loan, and also having enough ‘entitlement’ is one of the requirements. Entitlement refers to as the amount the VA will guarantee, whether you will get a loan on not from a lender. Usually, full benefits fall at $417,000, even higher in certain states where VA Jumbo Limits and cost of living is greatly increased.
- Property eligibility: VA loans enable the borrower to choose from a variety of properties such as single-family home, and VA approved condos, townhouses, modular homes and manufactured homes on a fixed foundation.
- Owner occupancy: After getting a home from the VA loan, the borrower is required to occupy their home for a period according to the law. About 60 days after closing the house deal, in the case of deployment away from home an extension of up to 12 months is acceptable.
You can consider going for a manufactured VA home loans if the offer meet what you are looking for, and there is clear evidence that the loan will be of great benefit to you.
What you would want to do next is to locate a VA Loan Professional whom will help you through the manufactured home financing process. Times keep changing, everyday lenders, underwriters and banks modify their guidelines.
You want to be sure you are current, and most importantly, with a loan officer that understands manufactured home financing guidelines and regularly closes these type of loans..
At VA Nationwide we pride ourselves in knowing each time you contact your banker, this is exactly who you will speak to.
We're the last of the traditional bankers, where you will get our bankers direct cell phone, email and office phone numbers.
Of course, they may reach out to you, more than you will to them. This lets you know they are fighting for your home, just like you fought for ours.
We thank you for your great service to our nation, and we look forward to serving you on your next home loan transaction. And if you're ready to check your VA eligibility, just click here.