Can You Buy a Manufactured Home With a VA Loan?

VA loans offer a path to homeownership for eligible service members, veterans, and their surviving spouses. This benefit extends to manufactured homes, providing an accessible option for those seeking affordable housing. The Department of Veterans Affairs guarantees a portion of these loans, which private lenders then issue. This government backing reduces risk for lenders, often allowing for more favorable loan terms for eligible borrowers.

VA Loan Borrower Eligibility

To qualify for a VA loan, individuals must meet specific service requirements. Active-duty service members generally need 90 consecutive days of service during wartime or 181 days during peacetime. Veterans must meet minimum service requirements based on their service era, typically 90 days during wartime or 181 days during peacetime, or 24 continuous months if service began after September 7, 1980, or as an officer after October 16, 1981. National Guard or Reserve members usually require six years of service or 90 days of active duty, with at least 30 consecutive days under Title 32 orders.

Eligibility can also extend to certain surviving spouses of service members who died while serving or from a service-connected disability, provided specific criteria are met, such as not remarrying before December 16, 2003, or before age 57. An honorable discharge is generally required.

A Certificate of Eligibility (COE) is a crucial document that verifies an individual’s military service meets the VA’s requirements for a home loan. The COE is not a loan approval but a confirmation of eligibility for the VA loan benefit. Obtaining a COE can be done through the VA’s eBenefits portal or by mail. Many VA-approved lenders can also assist in obtaining the COE electronically.

While the VA does not impose a minimum credit score, most private lenders require a credit score of at least 620 for a VA loan. Lenders also evaluate income stability and debt-to-income (DTI) ratio to ensure the borrower has the financial capacity to repay the loan.

Manufactured Home and Property Criteria

Manufactured homes must meet specific requirements to be eligible for VA loan financing. Homes built before June 15, 1976, are generally classified as mobile homes and typically do not qualify for VA loans. Manufactured homes, built after this date, must comply with the federal building and safety standards set by the U.S. Department of Housing and Urban Development (HUD). Compliance is verified through a permanently affixed HUD tag on the exterior and a data plate inside the home.

A central requirement is that the manufactured home must be permanently affixed to a foundation that meets VA and HUD standards. This typically involves a professionally engineered foundation system, with all wheels, axles, and towing hitches removed. An engineer’s certification may be required to confirm the foundation’s compliance.

The manufactured home must be classified and taxed as real property, not personal property. This means the home is legally tied to the land it occupies. The land must be owned by the borrower or purchased along with the home; homes placed on leased land or in mobile home parks are generally not eligible for VA financing.

Manufactured homes must also meet minimum size requirements, typically at least 400 square feet for a single-wide unit and 700 square feet for a double-wide unit. Furthermore, the property must satisfy the VA’s Minimum Property Requirements (MPRs), ensuring it is safe, sanitary, and structurally sound. These MPRs cover essential aspects like adequate heating, electrical systems, and plumbing. Manufactured homes previously moved from their original installation site are often not eligible for VA financing.

The VA Loan Application Process for Manufactured Homes

The application process for a VA loan on a manufactured home begins once borrower eligibility and property criteria are understood. Finding a lender experienced with manufactured home VA loans is an important first step, as not all VA-approved lenders offer this option. Borrowers should inquire about a lender’s experience and specific requirements.

Obtaining pre-approval helps establish a budget and demonstrates serious intent to sellers. This step involves providing the lender with information about income, assets, and debts, building on the Certificate of Eligibility. With pre-approval, the search for a manufactured home can proceed, focusing on properties that meet VA and HUD requirements for permanent foundations, real property classification, and structural integrity.

A mandatory VA appraisal is ordered by the lender to assess the home’s fair market value and confirm it meets the VA’s Minimum Property Requirements (MPRs). The VA assigns an independent appraiser who inspects the property’s condition, including the foundation, structural integrity, and compliance with HUD codes. The appraiser’s report will note any required repairs to meet MPRs, which must be completed before the loan can be finalized. A separate home inspection, while not required by the VA, is highly recommended.

During underwriting, the lender reviews all documentation, including the appraisal report, to ensure all criteria are met. Lenders often require a minimum 5% down payment for manufactured homes. A VA funding fee is also part of the loan, though it can be financed into the loan amount and may be waived for veterans receiving VA compensation for service-connected disabilities. The final step is closing, where all paperwork is signed, and the purchase is completed.