VA Loans for Modular and Manufactured Homes

Table of Content

• Can I get a Certificate of Eligibility for a VA direct or VA-backed home loan?
• Thinking about buying but not sure where to begin? Start with our affordability calculator.
• VA mobile home mortgage lenders
• What Is A Chattel Loan
• Submit Your Loan Application
• Who Is Eligible for Servicemembers' Group Life Insurance (SGLI)?

Under the right circumstances, you can get a manufactured or mobile home with a VA loan. The home has to live up to standards to qualify, plus the loan terms are not as long and the process can be tedious. With diligence though, you can possibly secure an affordable manufactured or mobile home. Currently I am in two separate repayment programs for those with defaulted student loans.

First, manufactured homes don’t typically “appreciate” in value, though there are rare exceptions. They don’t usually depreciate as quickly as a car but the process is similar. One of the reasons for that is they have a shorter life expectancy than a stick-built home. Of course, you may be able to slow depreciation by maintaining your home better than most owners do. Lenders typically look for slightly better credit scores on these homes.

Can I get a Certificate of Eligibility for a VA direct or VA-backed home loan?

Lets look at some other important differences in these housing types. If you have a wanderers heart and like the idea of being able to pack up and move to a new location whenever the desire hits you, then a manufactured home might be the right route. Its all about preference and what you feel is best for your or your familys situation. Beyond the obvious differences in mobility and permanence, there are more facets to explore when deciding between a modular or manufactured home. Defense commissary shopping is available to eligible Veterans, including those with service-connected disabilities.

That is of course if you have not locked in your loan. Veterans cant use VA financing to purchase a home solely as an investment property. VA loans are designed to fund primary residences for service members. Served 90 consecutive days of active service during wartime. Want to take cash out of your home equity to pay off debt, pay for school, or take care of other needs? Find out if you can get a VA-backed cash-out refinance loan.

Thinking about buying but not sure where to begin? Start with our affordability calculator.

Some are still more than happy to serve good borrowers with these products. You just have to be persistent in your search for one. Read on for ideas that might help you get the loan you want. And that means not all VA-approved lenders are willing to lend on manufactured/mobile homes.

One advantage of VA home loans, however, is that lenders consider your income in the most favorable light they can. They underwrite using debt-to-income ratios, like other lenders, but they also look at your residual income, which is more forgiving. If you qualify under either of those methods, you can be approved for a loan. If they are approved by VA to do VA loans, they can check your eligibility and qualification status.

VA mobile home mortgage lenders

If you qualify for a VA home loan, you may be able to buy a manufactured or factory-built home. Some of the benefits of buying a trailer home with a VA credit is that it requires a downpayment of only five percent and has an 80 percent VA-guaranteed credit. The VA credit is a government-backed program that provides mobile home loans to qualified service veterans and spouses.

You may decide or local laws may require you to put the home on a foundation. Those costs can escalate quickly, depending on the type of foundation you choose. Choose the type of loan youll use and compare different lenders offerings.

I’m also a Remax Realtor that specializes in working with Veterans. Disabled Veterans who are receiving compensation for a service-connected disability are exempt. Likewise, Veterans who are eligible for disability compensation, but are receiving retirement or active duty pay instead, are also exempt from the fee. More than 3,000 surviving spouses purchased a home with their fallen partner’s VA benefit in 2015.

One is to take out a loan for the land and a separate loan for the manufactured home. However, this could be less convenient, as you have to qualify for two different loans and manage two payments. The other option is to take out a loan that includes both the land and the property. Mobile homes are factory-built homes made before June 15, 1976. They might be very nice homes, but they were built before regulators required certain safety standards. Mostalthough not alllenders are reluctant to lend on these properties.

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.

Manufactured homes generally decrease in value over time, making them a risky investment for lenders. Veterans United does currently lend on manufactured housing. The VA also allows for a $0 down VA construction loan to build a new home. But it’s difficult to find lenders willing to actually fund the construction of a new home in today’s economic environment. A more common approach is to obtain a construction loan from a builder and then refinance the short-term loan into the VA program.

Manufactured homes, often referred to as “mobile” homes, are built in a factory to meet building codes set by the U.S. They have permanent steel frames and are made to be moved to location either in sections or as one structure. Like most lenders, Veterans United doesn’t offer a VA construction loan. But we do handle the permanent financing for many Veterans who get construction loans from builders or local lenders.

Not all VA lenders offer VA mobile home loans; the nature of the housing market in your area may or may not include them depending on location. But where they are offered, there are some important things to know about VA loans for mobile homes and manufactured housing. VA loans for service members and veterans can be used to purchase mobile homes. Given the lender, they can be especially good for this purpose, since many loans of this kind require no money down and no monthly mortgage insurance to finance through. There are, however, certain guidelines for using a VA loan to finance a mobile home. We discuss these in detail further along in the article.