Can I Buy a Manufactured Home With a VA Loan?

The Department of Veterans Affairs (VA) loan program helps eligible veterans, active-duty servicemembers, and certain surviving spouses achieve homeownership. While often associated with traditional houses, VA loans can finance manufactured homes. This financing has specific conditions and requirements that differ from conventional homes. This article outlines the conditions manufactured homes and borrowers must meet for VA loan financing.

Eligibility for Manufactured Homes

For a manufactured home to qualify for VA loan financing, it must meet specific structural, classification, and regulatory standards, along with requirements for the land it occupies. A manufactured home must be permanently affixed to a foundation, meaning its wheels, axles, and towing hitches have been removed. This ensures the home is treated as real estate, not personal property. The foundation must be engineered to meet VA standards, providing stability and durability.

The home must be legally classified as real property, not personal property or “chattel.” This typically involves converting the home’s title from personal property to real estate, often requiring filing with county records. This reclassification is fundamental because VA loans are for real estate. The home must have been built on or after June 15, 1976, when the U.S. Department of Housing and Urban Development (HUD) established national construction and safety standards.

Compliance with HUD standards is verified through a permanent metal “HUD tag” or certification label affixed to the exterior of each transportable section. An interior “data plate,” usually in a kitchen cabinet or bedroom closet, provides detailed information about the home’s manufacturer, construction date, and compliance with HUD codes, including wind, snow, and roof load zones. These identifiers confirm the home meets federal safety standards.

Most lenders prefer financing new or relatively new manufactured homes. A home moved from its original installation site is generally ineligible. Minimum size requirements apply: single-wide homes typically need at least 400 square feet, and double-wide or multi-sectional homes often require a minimum of 700 square feet. The land must be owned by the borrower or acquired simultaneously, as VA loans do not finance homes on rented or leased land. The property must also have adequate utilities (water, sewer/septic, electricity) and comply with local zoning and building codes.

VA Loan Specifics for Manufactured Homes

Applying a VA loan to a manufactured home involves particular considerations beyond general property eligibility. Not all VA-approved lenders offer financing for manufactured homes, so finding specialized lenders is necessary. These lenders possess the expertise to navigate the unique requirements and complexities of manufactured housing.

The appraisal process for a manufactured home with a VA loan is often more rigorous than for a traditional home. A VA-assigned appraiser assesses both the home and the land, ensuring the property meets VA Minimum Property Requirements (MPRs) and HUD standards. This appraisal also determines the fair market value, which can be challenging due to difficulties in finding comparable sales in some areas, potentially impacting valuation. The appraisal fee typically ranges from $400 to $600.

A structural engineer’s certification is frequently required to confirm the manufactured home’s foundation is permanent and adheres to VA and HUD standards, specifically the “Permanent Foundations Guide for Manufactured Housing.” This certification is often needed after installation and is typically the veteran’s responsibility. While VA loans are known for their zero down payment benefit, some lenders may require a small down payment for manufactured homes, typically around 5% of the purchase price. The VA funding fee, ranging from 1.4% to 3.6% of the loan amount depending on service type and prior VA loan use, still applies and can usually be financed into the loan. Interest rates for manufactured home VA loans might be slightly higher and terms potentially shorter than for traditional homes, reflecting the perceived risk. Loan terms can be around 20 years for single-wide homes and 23 years for double-wide homes, extending to 25 years when land is included.

Navigating the Application Process

Beginning the application process for a VA loan on a manufactured home starts with identifying a specialized lender. As not all VA-approved lenders offer this financing, research and connect with those experienced in manufactured housing loans. This initial step saves time and ensures access to knowledgeable guidance.

Once a specialized lender is identified, the next step involves obtaining pre-approval. During this phase, clearly communicate the intent to purchase a manufactured home, allowing the lender to assess eligibility based on the specific property type. Borrowers will also need to secure their Certificate of Eligibility (COE) from the VA, which verifies their entitlement to the VA home loan benefit.

With pre-approval, the focus shifts to selecting a manufactured home and entering a purchase agreement. Ensure the chosen property meets all eligibility criteria before signing a contract. After the contract is signed, the VA appraisal process is initiated.

The VA appraisal determines the home’s value and confirms its compliance with VA Minimum Property Requirements, including structural integrity and safety standards. Any deficiencies noted must be addressed and repaired before the loan can proceed to final underwriting. The final stages involve the lender’s underwriting review of all financial documents and property information, leading to closing. At closing, the deed transfer will include both the manufactured home and the land, and any necessary affidavits regarding the permanent foundation will be finalized.