Do VA Loans Cover Manufactured Homes?

Veterans and active-duty service members often seek pathways to homeownership, and the Department of Veterans Affairs (VA) home loan program provides a valuable benefit. While many associate VA loans with traditional houses, VA loans can cover manufactured homes. Financing a manufactured home with a VA loan comes with specific conditions and requirements for both the borrower and the property. A VA loan is a mortgage option backed by the U.S. Department of Veterans Affairs, issued through private lenders, designed to help service members, veterans, and surviving spouses achieve homeownership.

Standard VA Loan Eligibility

Meeting fundamental eligibility criteria is the first step to accessing the VA loan benefit. Service requirements are central to this eligibility. Active-duty personnel qualify after serving a minimum of 90 continuous days during wartime or 181 days during peacetime. National Guard and Reserve members generally need six years of honorable service, though some may qualify sooner if called to active duty. Surviving spouses of service members who died in the line of duty or from a service-connected disability may also be eligible.

Service eligibility is confirmed through a Certificate of Eligibility (COE). This document can be requested online via the eBenefits portal or through a VA-approved lender. For those separating from service, a DD-214 form is typically required, while active-duty members need a statement of service signed by their commander or a personnel officer.

Lenders assess financial qualifications, including creditworthiness and income. While the VA does not set a minimum credit score, most private lenders typically require a score around 620 or higher. Lenders also evaluate a borrower’s debt-to-income ratio, which compares monthly debt payments to gross monthly income. Residual income, the amount of discretionary income remaining after major expenses, is also considered.

A fundamental requirement for all VA loans is that the property must serve as the borrower’s primary residence. The borrower generally needs to occupy the home within 60 days of closing. Exceptions to this occupancy rule exist for active-duty service members on temporary assignments or if a spouse or dependent can fulfill the requirement.

Manufactured Home Requirements for VA Loan Eligibility

When using a VA loan for a manufactured home, specific property requirements must be met to ensure the home is a stable and permanent dwelling. The manufactured home must be affixed to a permanent foundation that meets VA and local building codes. Wheels, axles, and towing hitches must be removed, and the home needs permanent connections to utilities like water, sewer, and electricity.

The home must also be legally classified as real property, not personal property. This means the home is titled with the land it sits on and is subject to property taxes, not vehicle registration fees. If a manufactured home is currently classified as personal property, it usually requires reclassification to real estate before VA financing is possible.

The borrower must own the land where the manufactured home is located, or simultaneously acquire it with the home purchase. VA loans generally do not permit financing for manufactured homes on leased land, such as those in mobile home parks. This ensures the borrower has full ownership of both the structure and the underlying parcel.

Manufactured homes must adhere to federal 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, the date HUD codes went into effect. Evidence of this compliance is typically found through a permanently affixed HUD tag or label on the home’s exterior and an interior data plate.

Both new and existing manufactured homes can qualify. However, homes that have been moved from their original site are generally more challenging to finance. Many lenders do not offer loans for such properties due to increased risk and inspection complexities. If a home has been moved, it usually must have been moved only once and permanently affixed to its new foundation.

Size considerations also play a role. Single-section manufactured homes typically require a minimum of 400 square feet of living space, while multi-section homes generally need at least 700 square feet. Many lenders prefer or only finance multi-section homes due to perceived permanence and better resale value. Manufactured homes must also meet the VA’s Minimum Property Requirements (MPRs) regarding sanitation, safety, and structural integrity.

Applying for a VA Loan on a Manufactured Home

Securing a VA loan for a manufactured home involves a distinct procedural path. The first step involves finding a VA-approved lender with specific experience in financing manufactured homes. Not all VA lenders offer loans for these property types, so identifying one comfortable with the unique requirements is essential.

After selecting a lender, the pre-approval process begins. This involves submitting necessary documentation, including the Certificate of Eligibility, proof of income, and financial statements. Pre-approval provides an estimate of the loan amount for which a borrower qualifies, which helps in the property search.

Once a qualifying manufactured home is identified, an offer can be made. Following a successful offer, the property undergoes a VA appraisal and inspection. A VA-certified appraiser evaluates the home to determine its fair market value and ensure it meets VA Minimum Property Requirements (MPRs). For manufactured homes, the appraiser specifically verifies the permanent foundation, adherence to HUD standards, and proper installation. Any required repairs to meet MPRs must be addressed before loan approval, often necessitating a re-inspection.

The final stages involve underwriting and closing. During underwriting, the lender reviews all submitted documents, including the appraisal report, to ensure both the borrower and the property comply with VA guidelines and the lender’s specific criteria. This comprehensive review leads to final loan approval. The closing process then completes the transaction, transferring ownership and finalizing the loan.