Must-Know VA Loan...

The Department of Veterans Affairs (VA) loan program provides affordable financing options for veterans, active-duty service members, and eligible surviving spouses. For manufactured homes, specific requirements must be met to ensure compliance and eligibility.

Understanding VA manufactured home guidelines helps borrowers navigate the process, from meeting eligibility criteria to ensuring the home meets property standards.

Whether exploring available homes at Ignite MHC or upgrading your current home, this guide explains everything you need to know about VA loans for manufactured and mobile homes in 2024.

Borrower Eligibility

Borrower eligibility is a critical component of securing a VA loan. To qualify, applicants must be veterans, active-duty service members, or surviving spouses with an available VA loan entitlement.

The VA does not impose a strict minimum credit score requirement. However, most lenders prefer borrowers to have a credit score of at least 620. A strong credit profile increases the chances of loan approval and may help secure more favorable terms. This program also supports first-time homebuyers, offering a pathway to homeownership without a hefty down payment.

Property Eligibility

Property eligibility is equally important when applying for a VA loan for a manufactured home. The home must meet specific criteria to qualify for financing.

To be eligible, the manufactured home must be classified as real property. This means it must be permanently affixed to land owned by the borrower. Homes placed on leased land do not qualify under VA guidelines. Additionally, the home must have been built after June 15, 1976, in compliance with HUD construction and safety standards.

Minimum square footage requirements also apply. Single-wide homes must measure at least 400 square feet, while double-wide homes must have a minimum of 700 square feet.

Key Property Requirements

VA loans for manufactured homes include additional property requirements to safeguard the borrower’s investment and ensure the home is safe, sanitary, and structurally sound.

The home must be installed on a permanent foundation that complies with state and local building codes. An engineer’s certification may be required to confirm the foundation’s compliance with VA standards. A HUD certification tag must also be affixed to the home, verifying it meets federal safety and construction guidelines.

In addition, the property must pass the VA’s Minimum Property Requirements (MPRs). These requirements address essential elements such as the structural integrity of the home, proper sanitation systems, and overall safety. Meeting these standards is crucial for loan approval.

Loan Terms and Financing Details

Loan terms for VA financing align closely with those of traditional VA loans, but there are specific considerations for manufactured homes.

Loan limits depend on the county where the property is located, ensuring the financing amount reflects the local housing market. Borrowers can secure financing for up to 25 years for a double-wide manufactured home and land, or up to 20 years for a single-wide home or home-only purchase.

A VA funding fee is mandatory, but this cost can often be rolled into the loan amount. The funding fee supports the sustainability of the VA loan program and varies based on the borrower’s service history and down payment.

Additional Considerations

While VA loans make manufactured homeownership more accessible, there are unique factors to consider.

Not all lenders offer VA loans for manufactured homes, so it is essential to find a lender with experience in this niche. Manufactured homes may also depreciate faster than traditional homes, which could affect long-term investment potential and resale value.

Borrowers should also be prepared for different insurance requirements, as manufactured homes may need specialized coverage.

Understanding these nuances helps borrowers make informed decisions about financing and ownership.

Steps to Obtain a VA Loan for a Manufactured Home

Securing a VA loan for a manufactured home involves several key steps:

• Start by obtaining a Certificate of Eligibility (COE) from the VA.
• Identify a VA-approved lender experienced in financing manufactured homes.
• Get pre-approved to establish your budget and loan terms.
• Ensure the home meets eligibility criteria and property requirements.
• Schedule a VA appraisal to determine the home’s value and condition.
• Complete underwriting and finalize the loan process with your lender.

This step-by-step approach ensures a smooth journey from application to closing.

How Ignite MHC is Supporting Your Housing Needs

Ignite MHC is dedicated to helping you find the perfect manufactured home. Our communities offer expertly maintained available homes tailored to fit your lifestyle and budget. Whether you need guidance on financing or are ready to take the next step, our team is here to help.

Email us at info@ignitemhc.com to learn more about your options. Let us help you find a home you will love.