VA Home Loan Rules For Mobile Homes and Manufactured Housing
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Mobile home interest rates and fees can vary widely between lenders, so take the time to shop around. Try to find a loan that has low fees and interest rates so you can spend as little as possible over the life of the loan. A mobile home refers to manufactured homes produced before June 15, 1976.
You can also use a VA loan to purchase both a mobile home and land at the same time. But the kind of financing that’s available to you can vary depending on your circumstances. Veterans who want VA loans for mobile homes will need to submit to a credit check and meet certain income requirements.
Can I get a Certificate of Eligibility for a VA direct or VA-backed home loan?
The VA offers low-interest rates, which can lower the monthly payments on your mortgage and even save you money in the long run. A VA loan is a loan guaranteed by the Department of Veterans Affairs. The terms manufactured home and mobile home are often used interchangeably. According to the Department of Housing and Urban Development , mobile homes are structures that were built prior to June 15, 1976. Manufactured homes, on the other hand, are structures built after that date. Unlike mobile homes, manufactured homes must meet certain HUD standards regarding the way they can be constructed.
In these cases, you can keep the home, and enjoy the benefits of VA home buying one more time. But now, you’ve outgrown the home and need something bigger. When you sell the home and pay off the VA loan completely, you can re-use your benefit to buy another home.
Thinking about buying but not sure where to begin? Start with our affordability calculator.
Customers with questions regarding our loan officers and their licensing may visit the Nationwide Mortgage Licensing System & Directoryfor more information. To save money, some buyers are considering manufactured homes as a path to homeownership. You may be able to get a chattel loan if you don’t plan to buy the home site, which is often the case in a mobile home community.
You can buy many types of properties with a VA loan, including a single-family (free-standing) home, a home of up to four units, and even manufactured homes. But condominiums are commonly overlooked by VA home buyers. The VA streamline refinance, as it is commonly known, gives VA loan holders a faster, cheaper way to access lower refinance rates when rates fall. The VA assures the lender that it will be repaid if the Veteran can no longer make payments. In short, a VA loan gives you the best of both worlds.
VA mobile home mortgage lenders
Must conform with applicable building code and zoning requirements for real estate. Also understand that some lenders may not be willing to fund manufactured homes. This is not a VA limitation, but a lender-based limitation, so it’s important to check with your lender to see whether or not they fund these homes before doing anything else. They arent making any more land, so you want to get pre-qualified while this program is available.
If you are placing a manufactured home on land you are buying or already own, consider how far away the utilities are and the cost of hookup. Often, borrowers need to obtain a construction loan from a builder or a local lender, then look to refinance that short-term loan into a permanent VA mortgage once the home is ready. This is a common pathway for both stick-built and modular-new constructions.
Additionally, most manufactured homes depreciate in value as time goes on, which is the opposite of most homes. Those are two major reasons why many lenders avoid issuing VA loans for manufactured homes. It’s important to note that a mobile home must be classified as real property. In other words, it can’t be considered a vehicle (that’s personal property). If the mobile home you’re purchasing hasn’t been moved to a permanent location, you’ll need to provide your lender with details regarding how it will be installed.
In addition, a home on leased land won’t be considered real property. If you’re buying a new home from a dealer, you’ll need to place the home on land you own or land you’re buying. But, even if the manufactured home you’re buying was built to HUD’s standards, it may not qualify for a traditional mortgage.
Manufactured and modular homes are an attractive option for many VA borrowers, but must meet minimum property requirements and other guidelines specified by the lender. 42% of loans issued to people purchasing manufactured homes are chattel loans, according to a report from the Consumer Financial Protection Bureau. The Federal Housing Administration insures two types of loans for manufactured homes that can finance a manufactured home by itself, a lot by itself or both together. The title company handling your refinance or purchase must prove that your home is permanently affixed to the land and classified as real property to meet VA manufactured home guidelines.
Those who served 20, 30, even 50 years ago often wonder whether they can still buy a home today if they never used their benefit. Talk to a VA lender to learn more about financing your manufactured home with a VA loan. However, for loans made after March 1, 1988, the Veteran is required to apply for approval of the assumption and release from liability to the holder of the loan. If the loan was obtained before that date, it may be assumed without the approval of the loan holder or VA.
FHA loans, along with loans backed by the USDA and VA, could also finance a manufactured home. Under the VA loan program, however, mobile and manufactured homes are considered one and the same. For VA loan purposes, a mobile home is any house that’s built in a factory on a permanent frame called a chassis. A modular home, on the other hand, is built in sections in a factory.
More than 21 million Veterans and Servicemembers live in the U.S. today, but only about 6 percent of them bought a home using a VA home loan in the past five years. VALoans.com is not affiliated with or endorsed by the VA or any govt. Visitors with questions regarding our licensing may visit the Nationwide Mortgage Licensing System & Directory for more information. Yes, if you qualify for restoration of entitlement or have enough entitlement left to buy another manufactured home and dispose of the previously manufactured home. You’re not going to get a 30-year mortgage on a mobile home.
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