Can You Get a Manufactured Home With a VA Loan?

For many service members and veterans, the path to homeownership can present unique challenges, particularly with rising housing costs. Manufactured homes offer an accessible alternative, providing a more affordable entry point into the housing market. A VA loan can indeed be used to purchase a manufactured home, but specific conditions and requirements must be met for the property to qualify. This allows eligible individuals to use their benefits for a factory-built residence, making homeownership a tangible reality.

VA Loan Eligibility for Manufactured Homes

Using a VA loan for a manufactured home hinges primarily on its classification as real property. The home must be permanently affixed to a foundation, and the land must be owned by the veteran, not leased. Manufactured homes classified as personal property, like a vehicle, are not eligible for VA financing, as VA loans are for real estate.

The home’s construction date plays a significant role in its eligibility. To qualify for a VA loan, the manufactured home must have been built on or after June 15, 1976. This date marks the implementation of the U.S. Department of Housing and Urban Development (HUD) Manufactured Home Construction and Safety Standards (HUD Code). Homes built before this standard do not meet VA loan requirements and are typically referred to as mobile homes.

Qualifying Manufactured Home Characteristics

A manufactured home must meet specific physical and structural criteria to be eligible for VA financing. It must comply with the HUD Code, which governs aspects like structural design, fire safety, and energy efficiency. Compliance is typically evidenced by an exterior HUD tag and an interior data plate, which serve as the home’s identification and construction records.

The home’s foundation must be permanent and engineered to meet VA and local building codes. This involves removing all wheels, axles, and towing hitches, and ensuring the home is permanently connected to utilities like water, sewer, and electricity. While the VA has no maximum age limit, lenders often prefer homes 20 to 25 years old or newer, with older homes facing additional scrutiny during the appraisal process. Manufactured homes must meet minimum size requirements: typically 400 square feet for single-wide homes and 700 square feet for double-wide or larger. Homes moved from their original installation site are difficult to finance with a VA loan due to increased risks and inspection challenges.

Land and Appraisal Requirements

The land for the manufactured home is as important as the home itself for VA loan eligibility. The veteran must own the land or purchase it concurrently with the home, as leased land is not permissible for VA manufactured home loans. This ensures the entire property is a single real estate unit. The land must be adequate for the home and accessible.

The VA appraisal process for manufactured homes has unique considerations. A VA-approved appraiser assesses both the home and land together, using a Manufactured Home Appraisal Report. The appraiser confirms the home’s permanent affixation to the land, compliance with HUD Codes, and adherence to VA Minimum Property Requirements (MPRs), which ensure the property is safe, structurally sound, and sanitary. This appraisal establishes the market value of the combined home and land.

Applying for a VA Loan for a Manufactured Home

Applying for a VA loan for a manufactured home involves several steps. Begin by finding a VA-approved lender with experience in manufactured home loans, as not all lenders offer this financing. After identifying a suitable lender, obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs, which verifies your VA loan benefit.

Once eligibility is confirmed, proceed with pre-approval to understand your budget and potential loan terms. The lender verifies the home’s compliance with VA and HUD requirements, including foundation and titling. During underwriting, the lender reviews all documentation before approving the loan. The final stage is closing, where paperwork is signed and the purchase finalized, though this process may take longer than a traditional home loan.