Does a VA Loan Cover a Manufactured Home?

A VA loan offers homeownership opportunities for eligible servicemembers, veterans, and surviving spouses. For those considering manufactured homes, understanding the specific VA guidelines for financing them is important, as these homes differ from traditional houses. Their unique construction and titling require adherence to particular VA requirements.

Qualifying Manufactured Homes for VA Financing

A manufactured home must meet several criteria for VA financing. It must be permanently affixed to a foundation and legally classified as real property under state law. This reclassification typically involves removing the wheels and axles and titling the home with the land it occupies. An affidavit of affixture often demonstrates this permanent attachment to the land.

The home must have been constructed on or after June 15, 1976, the date federal HUD Manufactured Home Construction and Safety Standards (HUD Code) came into effect. This ensures the home meets modern safety and structural requirements, as indicated by a HUD certification tag or data plate. The VA also requires the home to meet Minimum Property Requirements (MPRs), ensuring the property is safe, sanitary, and structurally sound. For instance, single-wide homes generally need a minimum of 400 square feet of living space, while double-wide homes typically require at least 700 square feet.

Beyond structural and size considerations, the manufactured home must have operational utility connections, including water, sewer, and electricity. The property’s electrical, heating, and cooling systems, along with the roofing, must be in proper working order and capable of withstanding the elements. The home must be situated on a permanent foundation system that adheres to both VA and local building codes, often requiring an engineer’s certification to confirm compliance. Most lenders will not finance a manufactured home if it has been moved more than once after its initial factory installation.

VA Loan Requirements for Manufactured Homes

Borrowers must secure a Certificate of Eligibility (COE) to verify military service requirements. While the VA does not impose a minimum credit score, many lenders typically require a score of at least 620, though some may approve scores as low as 580. The manufactured home must also serve as the borrower’s primary residence.

VA loans typically cover both the manufactured home and the land it occupies, and the land must be owned by the borrower, not leased. The loan can finance the purchase of a manufactured home on land already owned, or the simultaneous purchase of both the home and the land. It can also be used to refinance an existing manufactured home loan and purchase the land it sits on.

VA loans for manufactured homes offer competitive interest rates and the potential for no down payment. Borrowers are typically responsible for a one-time VA funding fee, ranging from 1.25% to 3.3% of the loan amount, depending on the down payment and loan type. This fee can be financed into the loan. Loan terms for manufactured homes have a maximum of 25 years for a home and lot.

Securing a VA Loan for a Manufactured Home

The process begins with identifying a VA-approved lender experienced in this specific type of financing. Not all lenders offer VA loans for manufactured homes, so finding one with expertise is a practical first step. Once a lender is selected, borrowers can proceed with pre-qualification or pre-approval. The lender reviews financial information, including credit, income, and debt-to-income ratio, to determine potential loan amounts.

A VA-approved appraiser evaluates the home’s value, assessing its condition, size, age, and adherence to HUD codes and VA Minimum Property Requirements. This includes verifying the home is properly installed on a permanent foundation, often requiring an engineer’s certification. The appraiser also inspects structural integrity, as well as electrical and plumbing systems to ensure they meet safety standards.

Following a successful appraisal, the loan moves into underwriting. The lender conducts a thorough review of all submitted documentation, ensuring compliance with VA requirements and their own lending policies. This stage examines the borrower’s financial situation and the property’s eligibility. Finally, the closing process involves signing all necessary paperwork and finalizing the loan, transferring ownership of the manufactured home and land to the borrower.