VA Manufactured Home Loans
VA Home Purchase Loans
What is a Manufactured Home for VA Loan Purposes?
An acceptable use of the VA loan is purchasing a manufactured, or mobile, home. These are built in a factory on a permanent frame and made to be moved in one or more sections. It must be built to be lived in year round by a single family and there must be permanent eating, cooking, sleeping and sanitary facilities.
Manufactured homes have a tag on the outside of the home noting they meet codes and regulations required by the U.S. Department of Housing and Urban Development. These HUD tags are one way to be sure you’re purchasing a mobile home. It is important to know what is and what is not a manufactured home, as some VA lenders will not make loans for manufactured housing.
In addition, a modular home is not the same as a manufactured home for VA purposes. Although the parts or sections of a modular home are built in the factory and then moved to the building site, the home must still be put up and completed at the building site. Qualified veterans can also obtain a loan to purchase a modular home under VA's regular home loan program.
Veterans should understand before applying for a VA loan for a manufactured or modular home that it will be difficult to find a lender willing to do a true $0 down construction loan. VA loans for mobile homes typically carry more weight than their more traditional counterparts since the likelihood of long-term depreciation is higher. Borrowers often will acquire a short-term construction loan from a local lender or builder and then refinance that loan into a VA mortgage once the home is complete.
What Types of VA Manufactured Home Loans are Available?
You may use a VA-guaranteed loan to:
- Buy a manufactured home and/or lot
- Buy and improve a lot on which to place a manufactured home you already own and occupy.
- Refinance a manufactured home loan in order to buy a lot.
- Refinance an existing VA manufactured home loan to reduce the interest rate.
VA requires manufactured homes be on permanent foundations.
What Factors Should be Considered in Choosing a Site?
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. If service from a public or community water or sewage system is not available, find out if the ground water and subsoil conditions are satisfactory for an individual well and/or sewage disposal system.
What are the Loan Repayment Terms?
The maximum terms for manufactured home loans are: 20 years and 32 days for a single-wide unit or a combination single-wide unit and lot; 23 years and 32 days for a double-wide unit only; 25 years and 32 days for a double-wide unit and lot; and 15 years and 32 days for a lot only on which to place a manufactured home you already own.
If a Manufactured Home is Sold, Can the VA Loan be Assumed?
Yes. However, for loans made after March 1, 1988, the veteran is required to apply to the holder of the loan for approval of the assumption and release from liability. If the loan was obtained prior to that date, it may be assumed without the approval of the loan holder or VA, but the veteran will usually remain liable on the loan unless he or she applies to VA for a release from liability and VA grants the release in writing.
Can a Veteran Get More Than One VA Manufactured Home Loan?
Yes, if you qualify for restoration of entitlement, or you have enough entitlement left to buy another manufactured home and you have disposed of the previous manufactured home.