Can You Buy a Trailer With a VA Loan?

The VA loan program assists eligible veterans, active-duty service members, and certain surviving spouses in achieving homeownership. This benefit helps individuals purchase properties with competitive interest rates and, in most cases, without requiring a down payment. While recreational trailers, such as RVs or travel trailers, are generally not eligible for VA financing, certain types of manufactured homes can be financed under specific conditions. The key distinction lies in how the property is classified and its permanence.

VA Loan Eligibility for Different Property Types

VA loans are primarily designed to help individuals purchase a principal residence. These loans can be used for various property types, including single-family homes, condominiums, and multi-unit properties, provided the veteran occupies one of the units if it is a multi-unit property.

A manufactured home refers to a dwelling built in a factory on a permanent chassis. This differs significantly from recreational vehicles, which are designed for mobility and temporary use. For a manufactured home to be eligible, it must be considered real estate rather than personal property. This classification is crucial for meeting VA property requirements, emphasizing its permanent nature and attachment to land.

The VA mandates that the property financed must serve as the veteran’s primary residence. This ensures the loan is used for housing purposes rather than for investment properties or vacation homes.

Specific Requirements for Manufactured Homes

For a manufactured home to qualify for VA loan financing, it must meet specific requirements to function as a permanent dwelling. The home must be securely affixed to a permanent foundation that meets VA standards. This foundation should be engineered to secure the home to a specific site and withstand environmental factors.

The land on which the manufactured home is situated must be owned by the veteran or be purchased concurrently with the home using the VA loan. This means homes located on leased land or in manufactured home parks where the land is rented are typically not eligible. The combination of the home and the land must be classified and taxed as real property.

The manufactured home must comply with federal building codes and safety standards, specifically the U.S. Department of Housing and Urban Development (HUD) Code. This includes displaying a HUD certification label on the exterior and a data plate inside the home, indicating it was built after June 15, 1976, when these codes became effective. The property must also satisfy the VA’s Minimum Property Requirements (MPRs), which ensure the home is safe, sanitary, and structurally sound. MPRs cover aspects such as adequate utility hookups, proper access, and suitable site conditions.

During the appraisal process, the VA-approved appraiser assesses both the manufactured home and the land. This evaluation ensures the property meets VA valuation and structural standards. While the VA does not specify a minimum square footage, some lenders may require a certain size, such as 700 square feet for a double-wide or 400 square feet for a single-wide home. Homes that have been moved from their original location are generally ineligible for VA financing due to potential structural risks.

Trailers and Vehicles Not Covered by VA Loans

Many types of “trailers” or vehicles are not eligible for VA loan financing because they do not meet the program’s fundamental criteria for permanent housing. Recreational Vehicles (RVs) and travel trailers, for instance, are considered personal property rather than real estate. These vehicles are designed for mobility and temporary living, lacking the permanent foundation and land attachment required by the VA.

The VA loan program finances properties classified as real property. RVs and travel trailers fail to meet this classification, making them ineligible for direct VA financing, even if an individual intends to use them as a full-time residence. Similarly, tiny homes on wheels generally do not qualify unless they are permanently affixed to a foundation on land owned by the veteran and meet all other manufactured home criteria.

Other movable structures, such as campers or boats, are also excluded from VA loan eligibility. The reason for their ineligibility is their inherent lack of permanence and their classification as personal property.

Steps for Securing a VA Loan on a Manufactured Home

Securing a VA loan for a manufactured home involves a series of procedural steps. The process often begins with obtaining pre-approval from a VA-approved lender. Pre-approval helps establish the loan amount for which a veteran qualifies, streamlining the subsequent home search.

Finding a lender experienced with manufactured home VA loans is beneficial, as not all lenders offer this specific type of financing. These specialized lenders are familiar with the unique requirements and appraisal processes involved. Once a suitable lender is identified, the veteran can proceed with selecting a manufactured home that aligns with all VA and HUD requirements.

The next step involves submitting the loan application along with necessary documentation. This typically includes a Certificate of Eligibility (COE), which confirms the veteran’s VA loan entitlement. Lenders also require income verification, employment history, and a credit check, though the VA itself does not set a minimum credit score, most lenders typically look for a score of at least 620.

A VA appraisal and inspection are mandatory parts of the process. This involves a VA-approved appraiser evaluating the property to ensure it meets the VA’s minimum property requirements and establishes its value. The appraiser confirms the home’s permanent foundation, structural soundness, and compliance with all relevant standards. Following the appraisal, the loan moves into underwriting, where the lender reviews all documentation to ensure it meets VA guidelines. The final stage is closing, where all legal documents are signed and the loan is finalized.