Does a VA Loan Work for Manufactured Homes?

A VA loan can be a viable financing option for purchasing a manufactured home, provided specific conditions are met by both the property and the borrower. Understanding these conditions and the application process is important for navigating this specialized loan type.

VA Loan Eligibility for Manufactured Homes

To qualify for VA loan financing, a manufactured home must meet specific criteria. The home must have been built on or after June 15, 1976, the date the U.S. Department of Housing and Urban Development (HUD) established comprehensive construction and safety standards for manufactured homes. Additionally, the manufactured home needs to be permanently affixed to a compliant foundation, ensuring its stability and classifying it as real property. This means its wheels and axles must be removed, and it must be legally titled as real estate.

The home must adhere to HUD code standards and display both an exterior HUD certification label and an interior data plate. Single-wide homes require a minimum of 400 square feet of living space, while double-wide homes need at least 700 square feet. Furthermore, the property must satisfy the VA’s Minimum Property Requirements (MPRs), which ensure the home is safe, structurally sound, and sanitary.

The land on which the manufactured home is situated must be owned by the borrower; leased land is typically not eligible for VA financing. Essential utilities, including potable water, a safe method for sewage disposal, and electricity, must be connected and operational. While the VA does not set a minimum credit score, most private lenders offering VA loans typically look for a credit score of at least 620.

Preparing Your Application for a Manufactured Home VA Loan

Before applying for a VA loan for a manufactured home, collecting specific documentation is a necessary preparatory step. A Certificate of Eligibility (COE) confirms your eligibility for VA loan benefits based on your military service. This certificate can often be obtained through your chosen lender, online via the VA’s eBenefits portal, or by mail using VA Form 26-1880, typically requiring your DD214.

Beyond the COE, standard financial documents are required, including proof of income and employment, such as recent pay stubs, W-2 forms, and tax returns, to demonstrate financial stability. Lenders will also review your credit history. Identification documents are also a standard requirement.

Manufactured homes necessitate additional unique documentation. This includes the Manufacturer’s Certificate of Origin and specific proof of HUD certification, which can involve photographs of the exterior HUD tags and details from the interior data plate. A permanent foundation certification, provided by a licensed engineer, verifies that the home’s foundation complies with the HUD Permanent Foundation Guide for Manufactured Homes. This certification may incur a fee. Documentation proving the elimination of the home’s original title as personal property, reclassifying it as real estate, is necessary. For the land, the deed or purchase agreement and evidence of utility hook-ups are also required.

The VA Loan Application and Closing Process

Once all necessary information and documentation are gathered, the next phase involves the formal application and closing procedures. It is advisable to seek VA-approved lenders who have experience in financing manufactured homes, as not all lenders offer this specialized loan type. After selecting a lender, you will submit your complete application package for review.

Following application submission, the lender will order a VA appraisal, which is a required step for all VA loans. An independent, VA-assigned appraiser will assess the property’s market value and ensure it meets VA Minimum Property Requirements. This appraisal evaluates the home’s permanent foundation, structural integrity, compliance with HUD codes, and the functionality of essential utility systems. The cost of this appraisal is often paid upfront by the homebuyer.

After the appraisal, the loan moves into underwriting, where the lender reviews all submitted documentation, your financial standing, and credit history to confirm compliance with both VA and lender guidelines. This stage is where the final decision regarding loan approval is made, or additional information may be requested. Upon loan approval, the closing process is initiated.

Closing involves signing all final loan documents, and the transfer of title for both the manufactured home and the land occurs. Closing costs and fees will be due at this time. Any final inspections or certifications mandated by the VA or the lender must be completed before the transaction can officially close.