VA loans can be used to buy a manufactured home, but you may have to shop around for a willing lender. The VA has their own rules and guidelines, which include the ability to buy a manufactured home, but it’s up to the VA lender if they are comfortable with the purchase.
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Keep reading to learn the VA’s guidelines to see if your manufactured home purchase will work.
THE MANUFACTURED HOME REQUIREMENTS
The VA has strict requirements regarding the manufactured home. They include:
- The home must be permanently affixed to the ground (you cannot keep it mobile)
- The home must be recognized as real property in the county and taxed as such
- Meet the VA Minimum Property Requirements
The home must be safe, sanitary, and as large enough for your family to live comfortably. You can buy the mobile home itself if you already have land to put the home on or you can buy both the home and the land with the VA loan.
The VA loan terms are slightly different for manufactured homes. Whereas you would normally get a 30-year loan on a home with a VA loan, you’ll get a shorter term with the VA loan. They include:
- Single-wide manufactured home (with or without lot) – 20 years and 32 days
- Double-wide manufactured home without a lot – 23 days and 32 days
- Double-wide manufactured home with a lot – 25 years and 32 days
- Loan just for the lot to put a manufactured home on that you already own – 15 years and 32 days
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THE VA QUALIFYING REQUIREMENTS
The one thing the VA loan for manufactured homes has in common with VA loans for any other type of home is the borrower qualifications. At a minimum, you’ll need:
- 620 credit score
- Maximum 43% debt ratio
- Stable income and employment
- No recent bankruptcies or foreclosures
- Enough disposable income for your area and family size
The problem you may run into is the high risk of default that manufactured homes pose. Manufactured homes tend to depreciate over time rather than appreciate. This puts the lender at risk for default. This is why many lenders don’t offer VA loans on manufactured homes.
If you want to buy a manufactured loan, you’ll need to shop around. You may have the best luck using a mortgage broker because they deal with a large number of lenders each with different programs.