Understanding VA Standards For Manufactured Homes

Explore the essential VA standards for manufactured home loans with VANationwide.com. Ensure your property meets the requirements for quality and safety.

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.

Basic Level Requirements

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 are only willing to lend up to 80% when the VA clearly provides 100% options. It all comes down to the banks and what level of risk they will accept.



Permanent Foundation On Land You Own, Or Property On Rented Land?

Manufactured homes have many other aspects in the loan process that are not on traditional stick-built homes, modular, or condos. The most important aspect is ensuring the manufactured home is on a permanent foundation and 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’re not considered Real Estate Property; instead, you would require a chattel loan.

Chattel loans most typically come with shorter loan terms, higher interest rates, and even less security, as increasing prices of land have seen mobile home parks sell numerous times, even causing tenant evictions. Imagine you still have the mortgage but no land and the cost of moving that home to another spot quickly. This is why we always recommend owning the home on a permanent foundation on land you own.

However, if you are on land you will own with this property, whether building new, buying existing, or purchasing to renovate, you’ll require a few reports that accompany the appraisal.



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 than double or triple-wide, 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 a lot that the buyer already owns or is purchasing with the home.

  • The legal classification of a real property is not personal property or a vehicle.

  • A permanent foundation is 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 30 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.



Other articles you may want to check out next are:

A Complete Guide To Manufactured Home Loans (Updated For 2024)

Find Some Of The Best VA Administration Loans For Manufactured Homes

THE FEDERAL SAVINGS BANK IS NOT AFFILIATED WITH OR ACTING ON BEHALF OF THE FHA, USDA, VA, OR THE FEDERAL GOVERNMENT.

*Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.

*Messaging and Data Rates May Apply.

*VA eligibility is required for VA loan products. USDA loans are only available in USDA-eligible areas as designated by the USDA.

*We do not offer new dealer-manufactured home loans in New York, but we do offer modular and site-built land and home construction.

*Qualification for up to $50,000 extra is for qualified borrowers and can be applied to all loan programs. This is a separate unsecured consumer loan we will underwrite in-house at the same time as your requested mortgage loan. Please contact your banker to request this program and the applicable rates, terms, and conditions. Consumer unsecured lending programs prohibit loan proceeds from being used for down payment.

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†Subject to applicable law and lender approval, when represented by one of our participating real estate brokerage companies during the purchase or sale of a home or land, eligible Consumers may receive a rebate of up to thirty percent (30%) off of the fee to be received by the participating real estate brokerage company representing the respective Consumer, at closing, which rebate will be applied exclusively toward paying down that Consumer’s applicable closing costs. In no event shall any rebate be greater than the aggregate of all closing costs. Issuance of a rebate is subject to a participating real estate brokerage company’s receipt of its fee. The following states condition, or do not permit, the granting of a rebate by real estate brokerage companies (list is subject to change at any time): Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, and Tennessee. No remuneration is paid to The Federal Savings Bank or to any of our Bankers. This is a free program offered exclusively by us to help our consumers save on their real estate transactions.

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