Are you wondering if you can use your VA loan benefits to purchase a manufactured home—and what the catch might be?
Manufactured homes are an affordable path to homeownership, especially for veterans and active-duty service members. Yet using a VA loan for this purpose can come with red tape, lender restrictions, and strict property requirements.
In this guide, we’ll break down the most common challenges and provide clear, actionable solutions to help you navigate the process with confidence.
What Is a VA Loan—and Why Use It for Manufactured Homes?
A VA loan is a government-backed mortgage option offered through private lenders but guaranteed by the U.S. Department of Veterans Affairs (VA). It allows eligible borrowers to:
✅ Purchase with zero down payment
✅ Avoid private mortgage insurance (PMI)
✅ Get competitive interest rates
So why manufactured homes?
Manufactured homes—also called mobile homes—are built in a factory and then transported to a property site. They’re often more affordable than site-built homes and can serve as either primary residences or investment properties.
However, not all manufactured homes are eligible for VA loans, and not all lenders offer this option.
Common Challenges Using a VA Loan for Manufactured Homes
Let’s explore the typical roadblocks that veterans, first-time homebuyers, and even experienced investors face.
Eligibility Hurdles
VA loan eligibility doesn’t just apply to the borrower—it also applies to the property. Manufactured homes must meet specific criteria:
- Be permanently affixed to a foundation
- Be classified as real property (not personal property)
- Be your primary residence
- Meet HUD guidelines (built after June 15, 1976)
Mobile homes on wheels or not permanently affixed? Not eligible.
Property and Foundation Requirements
The VA requires manufactured homes to be:
- Attached to a permanent foundation that meets HUD and local building codes
- On owned land (or long-term leased land, in some cases)
A common pitfall? Buyers trying to finance homes in parks with only short-term leases or land not properly titled.
Lender Limitations
Many lenders are reluctant to finance manufactured homes, even with VA backing, due to:
- Lower resale values
- Higher default risk
- Complex underwriting rules
According to data from the Consumer Financial Protection Bureau (CFPB), only about 13% of manufactured home purchases are financed through traditional mortgages.
Appraisal Issues
VA appraisers may undervalue manufactured homes due to limited comparable sales or perceived depreciation, which can affect loan approval or terms.
Example:
- Home under contract for $180,000
- VA appraisal comes back at $165,000
- Buyer must renegotiate or pay the $15,000 difference out of pocket
Insurance and Title Complexities
Because manufactured homes may start as personal property, converting the title to real property is often a prerequisite for VA loan approval. This process varies by state.
Homeowners insurance for manufactured homes is also more niche and potentially more expensive.
How to Overcome These Challenges
Now that you know the issues, here’s how to take control of the process.
Strengthening Your Application
- Obtain your Certificate of Eligibility (COE) early via the VA’s eBenefits portal
- Maintain a strong credit profile (620+ is typical for VA lenders)
- Keep DTI (debt-to-income) ratio under 41%, though exceptions are made
Tip: Use a VA loan calculator to estimate how much home you can afford.
Working with VA-Savvy Lenders
- Not all VA-approved lenders specialize in manufactured homes—ask directly
- Consider lenders like Veterans United or Navy Federal Credit Union, which offer dedicated VA support
- Use this lender comparison tool from the VA: VA Lender Search Tool
Ensuring Property Compliance
Before making an offer:
- Confirm the home was built after June 15, 1976
- Ask if it’s on a permanent foundation and has HUD tags
- Verify zoning and land ownership status
Bonus: Some contractors offer foundation certification services to ensure compliance.
Preparing for the Appraisal
- Provide recent, local manufactured home sales as comps
- Highlight upgrades or renovations
- Ensure utilities are connected and systems are functional
If possible, attend the appraisal with your agent to answer questions and present supporting documentation.
Securing Proper Title and Insurance
- Convert the home’s title from personal to real property if needed (check with your county recorder)
- Shop for specialized insurance providers (Foremost, American Modern, etc.)
- Work with a title company experienced in manufactured homes to avoid delays
Final Thoughts and Key Takeaways
Buying a manufactured home with a VA loan is absolutely possible—but it requires diligence, the right partners, and a firm grasp of the rules.
Key Takeaways:
- Ensure both borrower and property meet VA standards
- Partner with experienced lenders and real estate professionals
- Get your documentation and certifications in order early
- Don’t skip the prep for appraisal and title transfer
Ready to take the next step?
Use the VA loan calculator to get started or connect with a certified VA lender or agent who understands manufactured housing.
