Can You Use a VA Loan for a Mobile Home?

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA) and issued by private lenders. This benefit helps eligible veterans, active-duty service members, and certain surviving spouses achieve homeownership. While “mobile home” and “manufactured home” are often used interchangeably, VA loan eligibility primarily applies to manufactured homes that meet specific criteria.

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. Veterans may qualify with 90 days of active service during wartime or 181 days during peacetime. National Guard and Reserve members typically require six years of service, or 90 days of active service with at least 30 consecutive days.

Certain surviving spouses may also be eligible if they have not remarried and their spouse died while serving or from a service-connected disability. All eligible borrowers must obtain a Certificate of Eligibility (COE). This document confirms service requirements and can be acquired online through the VA’s eBenefits portal, by mail, or with lender assistance.

Lenders assess creditworthiness and income for loan approval. While the VA does not set a minimum credit score, most lenders typically require a FICO score of at least 620. Borrowers must also demonstrate sufficient income to cover mortgage payments and living expenses, adhering to VA residual income guidelines.

Qualifying Mobile and Manufactured Homes

VA loan eligibility distinguishes between “mobile homes” and “manufactured homes.” Mobile homes were built before June 15, 1976, predating federal building and safety standards. Manufactured homes, built after this date, must comply with U.S. Department of Housing and Urban Development (HUD) construction and safety standards. VA financing is primarily available for manufactured homes meeting these post-1976 HUD codes.

For a manufactured home to qualify, it must be permanently affixed to a foundation meeting VA and HUD standards. It must be classified as real property, not personal property or a vehicle, under state and local laws. The land on which the home sits must be owned by the borrower; homes located in leased land communities or mobile home parks are typically not eligible.

Manufactured homes must also meet specific size and structural requirements. Single-wide homes typically need a minimum of 400 square feet of interior floor space, while double-wide units usually require at least 700 square feet. They must display an exterior HUD tag (or “red tag”) and an interior data plate, which certify compliance with HUD construction standards. The property must also adhere to VA Minimum Property Requirements (MPRs), ensuring it is safe, sanitary, and structurally sound. Financing a manufactured home that has been moved from its original installation site is often challenging, as most lenders prefer homes that have remained in place.

Applying for a VA Manufactured Home Loan

Applying for a VA manufactured home loan begins with finding a lender experienced in this financing. Not all lenders offer VA loans for manufactured homes due to their unique requirements. Borrowers should research and compare lenders for competitive rates and terms.

Once a suitable lender is identified, the application involves a review of the borrower’s financial standing. Lenders assess credit scores, debt-to-income (DTI) ratios, and residual income to ensure repayment capacity. While the VA does not impose a strict DTI limit, lenders often prefer a maximum DTI of 41%, with residual income playing a significant role.

The application includes an appraisal for the manufactured home. A VA-approved appraiser evaluates the property to confirm it meets all VA and HUD requirements, including verification of its permanent foundation and real property classification. This appraisal ensures the home’s value aligns with the loan amount and adheres to structural integrity and safety standards.

Unlike traditional VA loans, some lenders may require a down payment for manufactured homes, typically around 5% of the purchase price. Borrowers also pay a one-time VA funding fee, ranging from 1.25% to 3.3% of the loan amount. This fee can often be financed, and certain veterans with service-connected disabilities may be exempt. Loan terms for manufactured homes are typically shorter than the standard 30-year term for site-built homes; for instance, single-wide homes might have a maximum term of 20 years, while double-wides with land could extend to 25 years.