Can You Use a VA Loan for a Mobile Home?

VA loans offer significant benefits for eligible service members, veterans, and surviving spouses seeking homeownership. While usable for manufactured homes, specific conditions apply. This article outlines these requirements and guides the process of securing a VA loan for a manufactured home.

General VA Loan Eligibility for Manufactured Homes

Individuals must establish general VA loan eligibility. This hinges on military service criteria, varying by service period. Active-duty members typically need 90 consecutive days of service during wartime or 181 days during peacetime. National Guard or Reserves generally qualify with six years of service, or 90 days of active duty under Title 32 orders with at least 30 consecutive days. Spouses of service members who died in the line of duty or from a service-connected disability may also be eligible.

A Certificate of Eligibility (COE) serves as formal proof of VA loan entitlement. Borrowers can obtain their COE from a VA-approved lender, online via the VA’s eBenefits portal, or by mail using VA Form 26-1880. While a COE confirms eligibility, it does not guarantee loan approval, as lenders have their own financial criteria.

Lenders assess financial factors to determine repayment capacity. While the VA does not set a minimum credit score, most lenders require a FICO score of at least 620. Lenders also evaluate a borrower’s debt-to-income (DTI) ratio, comparing monthly debt payments to gross monthly income. The VA suggests a DTI ratio of 41% or less, but lenders may approve higher ratios with compensating factors like substantial residual income.

Specific Requirements for Manufactured Homes and Land

Using a VA loan for a manufactured home involves specific property requirements. The home must be permanently affixed to a foundation and classified as “real property” rather than “personal property.” This is fundamental because VA loans are secured by real estate, treating the home and land as a single unit. The home’s wheels, axles, and towing hitch must be removed.

The foundation must be engineered to meet VA and HUD requirements, ensuring stability and durability. An engineer’s certification may be required to confirm compliance with the “Permanent Foundations Guide for Manufactured Housing.” The home must also be properly connected to all necessary utilities, including water, sewage, and electricity.

Manufactured homes must comply with construction and safety standards set by the U.S. Department of Housing and Urban Development (HUD). The home must have been built on or after June 15, 1976, when HUD established federal construction standards. Evidence of compliance includes a HUD data plate and an exterior HUD tag. The VA does not impose strict age limits, but lenders may have their own age restrictions, often preferring homes built within the last 10 to 20 years.

The property must meet the VA’s Minimum Property Requirements (MPRs), ensuring the home is safe, structurally sound, and sanitary. Appraisers conducting VA inspections verify the property meets these standards, checking for proper heating/cooling, safe electrical/plumbing, and good overall condition. The appraisal also evaluates structural integrity, including the roof, walls, and flooring. Any identified issues must be addressed to ensure habitability and safety.

The borrower must own the land where the home is permanently situated. VA loans are not available for manufactured homes in leased land parks, as the home and land must be titled together as one real estate entity. This integrated titling ensures the property is recorded as real estate, not personal property, facilitating the loan guarantee. Manufactured homes must also meet minimum size requirements: 400 square feet for single-wide units and 700 square feet for double-wide units.

Applying for a VA Loan for a Manufactured Home

The first step in applying for a VA loan for a manufactured home is finding a lender experienced with this financing. Not all VA-approved lenders offer loans for manufactured homes, so seek out those with relevant expertise. Lenders specializing in these loans can provide guidance on their specific requirements and streamline the application process.

Once a suitable lender is identified, the next phase is to obtain pre-qualification or pre-approval. This requires submitting the Certificate of Eligibility (COE) and financial documentation. Pre-approval helps borrowers understand their budget and demonstrates financial readiness to sellers. This step is not a commitment to lend, but an assessment of borrowing capacity.

After pre-approval, the borrower can select a manufactured home that meets all VA and lender property requirements. Once a suitable property is found, a formal loan application is submitted. This application includes necessary documentation, such as the COE, detailed financial statements, and information verifying the manufactured home’s compliance with permanent foundation and HUD standards.

The loan then moves into the underwriting phase, where the lender conducts a comprehensive review of submitted documents. This includes a thorough examination of the property appraisal to ensure alignment with VA Minimum Property Requirements and manufactured home guidelines. The underwriter confirms the property is classified as real property and meets all structural and safety standards. If all conditions are met, the loan receives final approval.

The final stage is the closing process, where all loan documents are signed. This involves the transfer of ownership and payment of applicable closing costs. VA loans reduce out-of-pocket expenses for borrowers, but specific costs may vary. The closing marks the official completion of the loan process and acquisition of the manufactured home.