VA loans offer veterans a path to manufactured homeownership, but strict criteria apply. VA loan eligibility for manufactured homes requires meeting service requirements and obtaining a COE. The property must be permanently affixed, post-1976, real property, and meet size/utility standards. Lenders impose credit/income checks, and loan limits vary.
In this guide, we’ll break down the key factors that determine your eligibility, how VA loans work for manufactured homes, and what you can do to improve your chances of approval.
Understanding VA Loans for Manufactured Homes
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, offering benefits such as no down payment, lower interest rates, and no private mortgage insurance (PMI). While these loans are commonly associated with traditional single-family homes, they can also be used to finance manufactured homes, provided certain criteria are met.
Manufactured homes, often referred to as mobile homes or prefabricated homes, are built in a factory and then transported to a designated site. The VA has specific requirements to ensure these homes meet safety and durability standards.
VA Loan Eligibility Requirements for Manufactured Homes
To qualify for a VA loan on a manufactured home, you must meet both borrower eligibility requirements and property eligibility standards set by the VA and lenders.
1. Borrower Eligibility
To qualify for a VA loan, you must meet at least one of the following criteria:Â
✔ Veteran: Served at least 90 days during wartime or 181 days during peacetime.Â
✔ Active-Duty Service Member: Currently serving in the U.S. military with at least 90 consecutive days of service.Â
✔ National Guard or Reserves: Completed at least six years of service or 90 days of active duty during wartime.Â
✔ Surviving Spouse: Unmarried spouse of a service member who died in the line of duty or due to a service-related disability.
To confirm your eligibility, obtain a Certificate of Eligibility (COE) from the VA. You can apply through the VA’s eBenefits portal or ask your lender for assistance.
2. Property Eligibility
The manufactured home itself must meet specific property requirements to qualify for a VA loan:Â
✔ Permanent Foundation: The home must be permanently affixed to a foundation that meets HUD standards.Â
✔ Post-1976 Construction: The home must have been built after June 15, 1976, as per HUD regulations.Â
✔ Classified as Real Property: The home must be classified as real estate, not personal property (i.e., it must be on owned land or have a long-term lease).Â
✔ Minimum Size Requirements: A single-wide home must be at least 400 square feet, while a double-wide must be at least 700 square feet.Â
✔ Utilities & Accessibility: The property must have a reliable power source, water supply, and proper access to public roads.Â
✔ VA Appraisal Approval: A VA appraiser must inspect the home to ensure it meets minimum property requirements (MPRs).
Loan Terms and Limits for Manufactured Homes
While VA loans offer 100% financing, the terms and conditions for manufactured homes differ from traditional home loans.
🔹 Loan Terms:
- Manufactured home & land: Up to 30 years
- Manufactured home only: Up to 25 years
- Lot purchase only: Up to 15 years
🔹 Loan Limits:
- The VA does not set loan limits, but lenders typically cap loans at around $150,000 – $200,000 for manufactured homes.
- Loan amounts depend on your credit score, income, and lender guidelines.
VA Loan Application Process for Manufactured Homes
Applying for a VA loan for a manufactured home follows a structured process:
- Obtain a Certificate of Eligibility (COE) from the VA.
- Find a VA-approved lender that finances manufactured homes.
- Select a qualified manufactured home and/or land.
- Undergo a VA appraisal to verify property eligibility.
- Meet lender credit and income requirements.
- Close the loan and finalize your home purchase.
Common Challenges and How to Overcome Them
✅ Finding a VA-Approved Lender
Not all lenders offer VA loans for manufactured homes. To find one, check the VA’s lender list or contact local banks and credit unions.
✅ Meeting Credit and Income Requirements
Although the VA doesn’t have a minimum credit score, most lenders require at least 620. If your credit is below this, consider improving it by:
- Paying down outstanding debts
- Avoiding new credit applications before applying
- Correcting errors on your credit report
✅ Ensuring the Home Meets VA Standards
Before making an offer, verify that the home is permanently attached, HUD-certified, and classified as real property to prevent financing issues.
VA Loan vs. Conventional Loan for Manufactured Homes
If you’re deciding between a VA loan and a conventional loan, here’s how they compare:
Feature |
VA Loan |
Conventional Loan |
| Down Payment | $0 | 5-20% |
| Credit Score | 620+ | 650-700+ |
| PMI Required? | No | Yes (if <20% down) |
| Interest Rates | Lower | Higher |
| Loan Limits | Varies | Varies |
For veterans and active service members, VA loans offer significant advantages over conventional loans.
Final Thoughts: Is a VA Loan Right for You?
VA loans provide a unique opportunity for veterans and service members to purchase affordable manufactured homes with favorable terms and no down payment. However, meeting both borrower and property eligibility requirements is key to securing approval.
🔹 Next Steps:
- Check your COE eligibility through the VA website.
- Research VA-approved lenders that finance manufactured homes.
- Use a VA loan calculator to estimate your budget.
- Consult a real estate professional for guidance on property selection.
With the right preparation, you can make homeownership a reality through a VA loan for a manufactured home. Need more help? Contact a VA loan specialist today!
