There are many misconceptions out there regarding VA mortgage loans and what types of properties are eligible, particularly when it comes to manufactured (mobile) homes.
At the basic level, VA requirements for eligible properties include such things as independent utilities, sanitary living facilities, an effective heating system, electricity, access to potable water, a safe method for the disposal of sewage (public sewer connection when possible), proper ventilation, etc., all of which can be found in a manufactured home.
Despite the fact that many manufactured homes meet the VA’s standard requirements, many veterans are under the false impression that a VA loan can’t cover a manufactured home.
Or, if they are willing to finance them, they reduce the amount they will loan.
We have come across lenders offering astronomically high interest rates, and banks and brokers if they do only willing to lend up to 80% when the VA clearly provides 100% options.
It all comes down to the banks and what level or risk they will accept. Can you believe the largest VA Lender in the country doesn't even financing Manufactured Homes?
We only know this, because they send us the clients that apply and start the process and get so far along until they realize from the appraisal it was a manufactured home.
Imagine talking to people spending the money, and realizing the Loan Officer from the largest of VA banks doesn't inform you they can't even do your loan to begin with. That infuriates people, this is why we are so intent on you finding the right bank to work with.
It also matters that Manufactured Homes do have many other aspects in the loan process that are not on traditional stick built homes, modulars, or condos. The most important aspect is ensuring the Manufactured Home is on a permanent foundation, and it is on land that is going to be owned by you.
This rules out Mobile or Manufactured Homes in Mobile Home Parks, the VA, nor FHA, or USDA will allow these types of loans. If you do not own the land when the deal is done, you are not considered Real Estate Property, that would be a chattel loan you are looking for instead.
At the same time you need to have a few reports that accompany the Appraisal, and also be newer than a specific date.
What Are VA Requirements For Manufactured Home Loans?
Not all manufactured homes are eligible for a VA mortgage loan. For example, any manufactured home that is legally classified as a vehicle, and not real estate is not eligible.
This means any home inside a mobile home park where you pay a lease fee for the land is NOT eligible.
Additionally, while single wides are eligible, they must meet stricter requirements then doublewide, and so you always want to speak in detail about your property with a qualified manufactured home lender.
For a manufactured home to adhere to VA standards, it must include the following:
It’s own lot that the buyer already owns or is purchasing with the home.
The legal classification of a real property, not personal property or a vehicle.
A permanent foundation suitable to support both supporting and wind-overturning loads.
Adherence to the codes and requirements of the jurisdiction’s building authority.
Meet Your Homeownership Goals Through VA Nationwide
Building, Buying, and Refinancing a manufactured home with a VA mortgage loan is a complicated business between finding an eligible property and trying to find a lender willing to help you reach your homeownership goals.
Luckily, the VA home loan experts at VA Nationwide are dedicated to helping veterans and their families finance their new homes, we've been financing Manufactured Home Loans for over 20 years.
We work with veterans in all 50 states, so don’t hesitate to contact us to begin the process of getting you into a place you can truly call home.
If you're ready to see how much you can be approved for to build your own manufactured home and land purchase, or looking to refinance to pull out cash, check your eligibility here.
And, if for some reason you still aren't convinced we are the right team for you, then maybe taking a look at our verified reviews will help make your decision easier.