Can I Get a VA Loan for a Mobile Home?

It is possible to obtain a VA loan for a manufactured home. Guaranteed by the U.S. Department of Veterans Affairs, these loans assist eligible service members, veterans, and surviving spouses in achieving homeownership. Private lenders offer favorable terms, including competitive interest rates and no down payment. The program expands homeownership access for those who have served. Securing a VA loan for a manufactured home requires meeting specific conditions for both borrower eligibility and property characteristics.

Establishing Borrower Eligibility

Eligibility for a VA loan requires meeting service requirements set by the Department of Veterans Affairs. Active-duty service members need at least 90 consecutive days of service. Veterans may qualify with 90 consecutive days of active service during wartime, or 181 days during peacetime. National Guard or Reserves members are eligible with six years of service, or 90 days of service under Title 32 orders (with at least 30 consecutive days). Surviving spouses of service members who died in service or from a service-connected disability, and who have not remarried, are also eligible.

Confirming eligibility requires a Certificate of Eligibility (COE), which verifies service criteria for the loan benefit. A VA-approved lender can retrieve the COE directly from the VA’s automated database, often within minutes, using basic personal information. Alternatively, individuals can apply for a COE online through the VA’s eBenefits portal or by mailing VA Form 26-1880 to a regional loan center. Mail requests take longer, typically four to six weeks.

Beyond service requirements, lenders evaluate financial readiness. While the VA does not set a minimum credit score, most lenders require a FICO score of at least 620 for a VA loan. Lenders also assess income stability and debt-to-income (DTI) ratio to ensure the borrower can manage mortgage payments. While a DTI ratio of 41% or less is a common guideline, exceptions are made for borrowers with strong compensating factors, such as significant residual income or substantial savings.

Qualifying Mobile Home Properties

Securing a VA loan for a manufactured home requires the property to meet specific criteria, which are more stringent than for site-built homes. The manufactured home must be built after June 15, 1976. This date marks when the U.S. Department of Housing and Urban Development (HUD) established federal construction and safety standards for manufactured housing, ensuring quality and safety. Homes built before this date are classified as mobile homes and are ineligible for VA financing.

The manufactured home must be affixed to a permanent foundation complying with HUD standards and local building codes. A permanent foundation is constructed of durable materials like concrete, treated wood, or mortared masonry, designed to resist movement, frost heave, and wind uplift. The wheels, axles, and towing hitch must be removed, and the home permanently connected to utilities. A professional engineer certifies the foundation’s compliance with HUD guidelines, which is a requirement for VA loans.

The manufactured home must be legally classified as “real property” rather than “personal property” or a vehicle. This reclassification involves surrendering the home’s vehicle title and recording it with local land records, integrating it with the land. If property taxes are paid instead of annual fees to a Department of Motor Vehicles, it indicates the home is already classified as real property. The borrower must own or be simultaneously purchasing the land; VA loans do not finance homes on rented land, such as in mobile home parks.

The property must also meet the VA’s Minimum Property Requirements (MPRs), ensuring the home is safe, sanitary, and structurally sound. This includes adequate heating, proper utilities, and no significant structural damage or hazards. While there isn’t a strict maximum age limit, lenders may impose their own restrictions, with some preferring manufactured homes 10 to 20 years old or newer, due to concerns about condition and depreciation. Some lenders may require a minimum interior floor space, such as 400 square feet for single-wide units and 700 square feet for double-wide units.

Gathering Required Loan Documentation

Before applying for a VA loan for a manufactured home, borrowers must gather documents to demonstrate financial standing and property eligibility. This preparation streamlines the application process. A foundational document is the Certificate of Eligibility (COE), which confirms military service and entitlement to VA loan benefits. If not already obtained, this should be an initial step.

Personal financial documents are essential for assessing creditworthiness and income stability. Borrowers need recent pay stubs (last 30 days) and W-2 forms from the past two years to verify employment and income. Federal tax returns for the previous two years may also be required, particularly for self-employed individuals or those with complex income. Bank statements and other asset statements (most recent 60 days) are necessary to show available funds for closing costs and reserves, although VA loans do not typically require a down payment.

Documentation specific to the manufactured home is equally important. This includes proof of land ownership, such as a deed or purchase agreement if the land is being acquired with the home. If the manufactured home has an existing title, its Vehicle Identification Number (VIN) and documentation related to its permanent affixation to the land, such as engineering certifications for the foundation, will be needed. Information about the home’s compliance with HUD standards, evidenced by HUD certification tags and data plates, is also crucial. An appraisal readiness assessment, confirming the property can meet VA Minimum Property Requirements, helps ensure a smoother appraisal process.

The VA Loan Application and Closing Process

Once documentation is prepared, the steps for applying for and closing a VA loan on a manufactured home can commence. The first step involves identifying a lender, as not all VA-approved lenders offer financing for manufactured homes due to unique requirements and perceived risks. Borrowers should seek lenders specializing in VA manufactured home loans, as these institutions are familiar with the guidelines and processes involved.

After selecting a lender, the compiled documentation, including the Certificate of Eligibility and financial records, is submitted as part of the loan application. The lender then initiates the appraisal process, a mandatory step for all VA loans. A VA-assigned appraiser evaluates the manufactured home and its land to determine fair market value and ensure it meets the VA’s Minimum Property Requirements. The appraiser inspects the permanent foundation, structural integrity, and compliance with HUD codes.

Following the appraisal, the loan moves into underwriting, where the lender reviews all submitted documentation, the appraisal report, and the borrower’s financial profile. This review verifies that both the borrower and the property satisfy all VA and lender-specific guidelines. If underwriting identifies issues or requires additional information, the borrower will be contacted to resolve them. Upon successful completion of underwriting, the loan receives final approval.

The final stage is the loan closing, where all parties sign the necessary legal documents. This includes the promissory note, outlining loan terms, and the deed of trust or mortgage, which secures the loan against the property. Funds are then disbursed, and the manufactured home and land transfer ownership to the borrower. Post-closing, relevant documents, such as the deed, are recorded with the county land records office, finalizing the real property classification and ownership.