VA Loans for Manufactured Homes

A VA loan is a hard-earned benefit for military personnel and their families, which aims to make homeownership more accessible to those who serve our country. But when someone wants to use their VA loan for a manufactured home, they may have questions about the process.  

So, can veterans use their benefits to buy a manufactured home? The short answer is yes, you can use a VA loan for a manufactured home. A manufactured home is defined as a structure first built in a factory, then transported to the home site. Like any other home, manufactured homes must meet the building codes established by the U.S. Department of Housing and Urban Development (HUD).  

To access a VA mortgage for manufactured homes, you will need to meet certain requirements. 

What are the requirements to access a VA loan for a manufactured home? 

To obtain a VA loan for land and manufactured homes, you need to meet certain requirements and not all lenders offer them. This is why finding a lender that even offers them may not be as simple as with other mortgages. 

In order to determine if you qualify for a VA loan to purchase a manufactured home, a lender will verify your income with your employer to confirm you can repay the mortgage. They will also pull a credit report. 

These requirements are identical to the ones for any regular mortgage, but VA loans have one additional condition: the manufactured home you’re going to buy must be attached to a piece of land, and that land must be your own.  

Additional requirements include: 

• The home must be real property and not personal property. “Real property” refers to assets that cannot be easily removed. Houses and swimming pools, for example, are considered real property. “Personal property,” on the other hand, is anything that can be picked up and used elsewhere, for example, a recreational vehicle (RV).  
• Most lenders will require that your new manufactured home has a minimum square footage of at least 400 feet of living space. 
• Land requirements. The manufactured home must be attached to a permanent foundation to qualify for a VA loan.  
• The house’s roof must be safe and in good working order, and so must the following utility systems: 
  • Electrical system 
  • Cooling system 
  • Heating system 
  • Sewage-disposal system 

Loan Rates for Manufactured Homes 

Manufactured homes represent a higher risk for lenders than traditional “stick-built” homes. Consequently, even VA loan rates for manufactured homes tend to be a bit higher compared to other loans. 

Still, VA loan rates for manufactured home loans are usually better than other mortgages. This is because VA mortgages are backed by the U.S. Department of Veterans Affairs (VA). VA loans also allow borrowers to bundle some of their closing costs into their total loan amount (including the foundation fee). You’ll see the benefits early on your loan estimate– non-VA mortgages usually have closing costs from 2-5% of the loan amount, but VA-backed loans have closing costs closer to between 1.4% and 2.3%. 

Remember that to access VA benefits, you must meet the minimum service requirements, either: 

• You served 90 continuous days during wartime, or 
• You served 181 continuous days during peacetime, or 
• You served more than 6 years in the National Guard or Reserves. 

Defining whether a manufactured home is your ideal investment will depend on several factors (your monthly income, for example). But purchasing a manufactured home may be a little cheaper than another type of home. If you meet the requirements to qualify for a VA loan for a manufactured home, they are a great opportunity to own your own home as soon as possible. 

For further information, see our posts on VA home loan requirements, or requirements for FHA and conventional mortgages, or contact us at 877-788-3520. Our experienced team of loan officers specializes in VA home loans, and they look forward to helping you navigate the process of getting a VA home loan for manufactured homes. 

Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.