Manufactured homes are essentially built in a factory and are designed to move in sections. A common question that borrowers have is can I use VA loans for manufactured homes? Yes, the VA does authorize the use of VA loans for manufactured homes, but these homes must meet a few requirements first.
Different Home Types
Do you know all the different property types in the country? Here is a list of the major ones:
- Single Family Residences (SFR)
- Planned Unit Development (PUD)
The 3 that get confused the most are modular, mobile, and manufactured. Like I said above, manufactured homes are built in a factory offsite. The entire operable house was transported to the area and placed on the desired property. However, it rests on a permanent foundation and must meet all of the federal building codes that the U.S. Department of Housing and Urban Development (HUD) administers. It’s also taxed as real property.
A mobile home is different mainly because of the year it was built. Mobile homes typically do not have a permanent foundation and can be transported from location to location if needed. Mobile homes also usually reside in mobile home parks that offer rented land. However, mobile homes stopped being built in 1976. All “mobile” homes made after that year needed to comply with new HUD rules and started being called manufactured homes.
VA Manufactured Home Loan Requirements
According to the VA, a manufactured home must have permanent cooking, eating, sanitary, and sleeping facilities. It also must be lived in by the family year-round. Another important requirement is that the home must classify as real property.
If you are hoping to get a VA mobile home loan, this may not be possible since most mobile homes are classified as a vehicle or personal property and require different loan types to fund. Still, it’s important to check this with your lender because your mobile home may in fact be a manufactured home and may still qualify you for VA manufactured home loans.
Also understand that some lenders may not be willing to fund manufactured homes. This is not a VA limitation, but a lender-based limitation, so it’s important to check with your lender to see whether or not they fund these homes before doing anything else.
Low VA Rates for Manufactured Homes
At Low VA Rates, we have no problem funding VA loans for manufactured homes. In fact, we love doing them. Unlike many other lenders, we’ll give you the same rate that you’d get with any other type of home—we won’t raise your interest rate just because your house is called something different. We also don’t add on extra closing costs because these loans are almost exactly the same as any other home loan and don’t require extra work. We also don’t add overlays to any of the loans we do. If you need more reasons to do a loan with Low VA Rates, give us a call or visit our site. We would love to help you out!