Does the VA Finance Mobile Homes? Yes, Here’s How

The Department of Veterans Affairs (VA) provides home loan benefits to eligible service members, veterans, and surviving spouses, assisting them in achieving homeownership. While these loans are frequently used for traditional site-built homes, they can also extend to manufactured homes under specific conditions. This flexibility allows a broader range of housing options for those who have served.

Veteran Eligibility for VA Loan Benefits

To access VA loan benefits, an individual must meet specific service requirements. These include 90 consecutive days of active duty during wartime, or 181 days during peacetime. National Guard or Reserve members need six years of service, or 90 days of active duty under Title 32 orders with at least 30 consecutive days. Surviving spouses of service members who died in service or from a service-connected disability may also qualify, provided they meet certain criteria, such as not remarrying before specific dates.

A Certificate of Eligibility (COE) confirms a veteran meets the military service requirements for a VA loan. A COE can be acquired in several ways. The easiest method is through a VA-approved lender, who can access an automated database to retrieve the COE in minutes, using the veteran’s Social Security number and birth date. Alternatively, veterans can apply for their COE online through the VA’s eBenefits portal or by mailing a completed VA Form 26-1880 to the appropriate regional loan center; mail requests can take several weeks.

Beyond service history, general loan qualifications like creditworthiness and income are also considered. While the VA does not set a minimum credit score, most private lenders offering VA loans look for a score of at least 620. Lenders also evaluate a borrower’s debt-to-income (DTI) ratio, preferring it to be 41% or lower, though compensating factors like significant residual income can allow for higher ratios. The VA’s primary focus is on ensuring the veteran has sufficient residual income—money remaining each month after paying major expenses—to cover everyday living costs.

Qualifying Manufactured Home and Land Requirements

For VA financing, it is important to distinguish between a “mobile home” and a “manufactured home.” A “manufactured home” refers to homes built after June 15, 1976, adhering to the federal Manufactured Home Construction and Safety Standards, known as the “HUD Code.” Homes built before this date, referred to as “mobile homes,” do not meet current safety standards and are not eligible for VA financing. Manufactured homes must also not be recreational vehicles (RVs) or travel trailers, as these are not eligible property types for VA loans.

A manufactured home must be affixed to a permanent foundation for VA financing. This foundation must meet specific VA and local building codes, ensuring stability and durability. An engineer’s certification is required to confirm the foundation complies with HUD Permanent Foundations Guide for Manufactured Housing standards. The home must also be classified and taxed as real property, not personal property, and its axles and tongues must be removed.

The veteran must own or be purchasing the land where the manufactured home is located. VA loans are not permitted for manufactured homes on leased land. Permanently affixing the home to the land includes ensuring it meets local zoning and building regulations. It must also display a metal identification plate, known as a “HUD tag,” on its exterior and a “data plate” inside, providing details about the home’s specifications.

The manufactured home must meet the VA’s Minimum Property Requirements (MPRs), ensuring the property is safe, structurally sound, and sanitary. This includes a minimum interior floor space: at least 400 square feet for single-wide homes and 700 square feet for double-wide or larger homes. While new manufactured homes are commonly financed, existing homes must also meet these criteria. Homes previously moved from their original site are not eligible for VA financing due to structural risks and the requirement for permanent affixation.

Applying for a VA Manufactured Home Loan

Securing a VA manufactured home loan begins with finding a lender experienced in this financing. Not all VA-approved lenders offer loans for manufactured homes, as policies and guidelines vary by institution. Seek out lenders who specialize in these loans, as they will be more familiar with the unique requirements and processes involved.

Once a suitable lender is identified, the next step is pre-qualification or pre-approval. This initial assessment helps determine the maximum loan amount for which a veteran may be eligible, providing a clear budget for their home search. The lender will review financial documents, including income, credit history, and the Certificate of Eligibility, to provide this estimate.

After locating a qualifying manufactured home and land, the formal loan application process commences. This involves submitting financial documentation, which includes employment verification, income statements, and details about existing debts. The lender then initiates the appraisal and inspection phase. A VA-assigned appraiser evaluates the property’s market value and ensures it meets VA safety and structural requirements, known as Minimum Property Requirements (MPRs). The appraisal checks the permanent foundation, structural integrity, and compliance with HUD Codes.

Following the appraisal, the loan moves into underwriting. Here, the lender conducts a thorough review of all submitted documentation to confirm it aligns with VA guidelines and their internal lending standards. The VA guarantees a portion of the loan, which reduces risk for the lender. If underwriting is successful, the loan is approved. The final step is closing, where all necessary documents are signed, and loan funds are disbursed, allowing the veteran to take ownership of the manufactured home and land.