Can You Use a VA Loan on a Manufactured Home?

The Department of Veterans Affairs (VA) home loan program offers a valuable benefit to eligible service members, veterans, and surviving spouses, facilitating homeownership. While commonly associated with traditional homes, VA loans can also be used for manufactured homes. This option provides an accessible path to homeownership. Understanding the specific criteria and processes is important.

VA Loan Eligibility for Borrowers

To use a VA loan, individuals must first establish borrower eligibility. This centers on military service requirements, which vary by service period. Generally, veterans need 90 consecutive days during wartime or 181 during peacetime. Active-duty members typically qualify after 90 continuous days. National Guard and Reserve members usually require six years of honorable service, or a shorter period if activated. Surviving spouses of service members who died in service or from a service-connected disability may also be eligible.

A Certificate of Eligibility (COE) formally confirms military service meets VA requirements. It can often be obtained quickly through a VA-approved lender online. Applicants can also request their COE via the VA’s eBenefits portal or by mail using VA Form 26-1880. The COE confirms eligibility, but is not a loan approval.

Lenders assess financial qualifications to ensure loan repayment ability. While the VA does not set a minimum credit score, most lenders require one, often around 620. Income stability and sufficiency are evaluated, requiring borrowers to demonstrate a steady, reliable income. Lenders examine income sources like employment, retirement, or disability benefits, and verify employment history, often seeking two years of consistent income. The VA also uses a “residual income” guideline, ensuring borrowers have sufficient discretionary income after monthly obligations to cover basic living expenses.

Manufactured Home Property Requirements

Securing a VA loan for a manufactured home involves specific property criteria. The home must be permanently affixed to a foundation meeting VA and HUD standards. This foundation must be professionally engineered, often with reinforced poured concrete footings extending below the frost line. The home’s wheels, axles, and towing hitches must be removed. The foundation must also include a permanent, self-supporting perimeter wall or skirting to enclose the area beneath the home and prevent vermin and water intrusion.

The manufactured home must be classified and taxed as real property, not personal property, under local and state laws. This is necessary because VA loans are for real estate. Manufactured homes must have been built after June 15, 1976, the date the HUD Code for construction and safety standards went into effect. Compliance is evidenced by a HUD tag on the exterior and an interior data plate.

Minimum size requirements apply: single-wide homes generally need at least 400 square feet, and double-wide or larger homes typically require 700 square feet. The property must be on a single tax parcel and connected to permanent utilities like water, sewer, and electricity. While the VA has no official maximum age limit, homes over 20 to 25 years old may face additional scrutiny during appraisal due to condition and value retention concerns.

Lender-Specific Considerations

While the VA sets broad guidelines, individual lenders often implement additional requirements called “overlays.” These are stricter criteria beyond VA minimum standards and can influence securing a VA loan for a manufactured home. Lenders use overlays to manage risk.

Common lender overlays for manufactured homes include stricter age limits than the VA’s post-1976 requirement. Many lenders prefer homes 20 years old or newer, though some consider up to 25 years. Lenders may also impose stricter credit score expectations, often a minimum of 620, despite no VA mandate. Some lenders may also have specific requirements regarding manufactured home communities, potentially limiting financing for homes on leased land or in certain parks.

Not all VA-approved lenders offer financing for manufactured homes, and their requirements vary widely. Prospective borrowers should seek lenders with extensive experience in VA manufactured home loans. Such lenders can help navigate these additional requirements and increase loan approval likelihood.

Applying for the VA Loan on a Manufactured Home

The application process for a VA loan on a manufactured home begins after determining borrower eligibility and identifying a suitable property. Engaging with a VA-approved lender experienced in manufactured home financing is a key first step. The lender guides the borrower through submitting a complete loan application package, including financial documentation to verify income, assets, and credit history.

The appraisal process is specific for manufactured homes. A VA-assigned appraiser assesses the property’s value and ensures it meets VA Minimum Property Requirements (MPRs). MPRs ensure the home is safe, structurally sound, and sanitary, with functioning utilities, adequate roofing, and proper drainage. For manufactured homes, the appraisal often requires a structural engineering report or a permanent foundation certification. This certification confirms the home is properly anchored and its foundation complies with HUD’s Permanent Foundations Guide for Manufactured Housing, including reinforced concrete footings and proper tie-downs.

Following the appraisal, the loan moves into underwriting. During this phase, the lender reviews all submitted documentation, including the appraisal and any required engineering certifications, to confirm compliance with VA guidelines and lender overlays. The underwriter ensures the borrower’s financial capacity aligns with the loan amount and the property meets all conditions. Once approved, the final steps involve signing loan documents and disbursing funds at closing, after which the borrower takes ownership.