Thinking of using your VA benefits to buy a manufactured home? You’re not alone. With rising housing costs, many veterans and service members are turning to manufactured homes as a smart, cost-effective housing solution. However, VA loan eligibility for manufactured homes has unique complexities.
This comprehensive guide breaks down who qualifies, what the VA requires, and how you can successfully navigate the process.
Who Qualifies for a VA Loan on a Manufactured Home?
VA loans are mortgage loans backed by the U.S. Department of Veterans Affairs. They offer numerous benefits, including:.
Eligibility Criteria
- Veteran, active-duty, reservist, or eligible surviving spouse
- Competitive interest rates
- No private mortgage insurance (PMI)
Tip: You can apply for your COE directly on the VA’s eBenefits portal.
What Are the VA Loan Rules for Manufactured Homes?
Quick Answer: The home must be double-wide or larger, built after June 15, 1976, compliant with HUD code, and affixed to a permanent foundation. The buyer must own the land or have a long-term lease (20+ years).
Key Property Requirements
- Permanent Foundation: Home must be affixed to a VA-compliant permanent foundation
- HUD Code Compliance: Must be built after June 15, 1976, with a HUD red certification label
- Double-Wide Minimum: Single-wide homes are not typically financed by VA-approved lenders
- Land Ownership or Long-Term Lease: You must own the land or lease it for at least 20 years
- Utilities & Access: The home must have essential utilities and be accessible by standard roads
- Appraisal: Must pass a VA appraisal and meet Minimum Property Requirements (MPRs)
Note: Homes moved more than once may be ineligible for financing.
How Can Veterans Meet the Requirements for a VA Loan on a Mobile or Manufactured Home?
Quick Answer: Ensure the home is HUD-compliant, double-wide, and permanently affixed to land you own or lease for 20+ years. Secure a COE and work with an experienced VA lender.
Action Steps for Veterans
- Get Pre-Approved: Choose a lender that finances manufactured homes with VA loans
- Inspect the Property: Confirm foundation and structure meet HUD and VA standards
- Check Zoning: Ensure the home is classified as real property and zoned appropriately
- Use Tools: Estimate costs with a VA mortgage calculator
Real-Life Financial Comparison
If you purchase a manufactured home for $120,000 compared to a site-built home for $250,000, both using a VA loan with no down payment at a 4.5% interest rate for 30 years, the monthly mortgage for the manufactured home would be approximately $607, while the site-built home would cost around $1,265. Property taxes would be lower as well—about $800 annually for a manufactured home versus $2,500 for a site-built home. That’s over $650 in monthly savings with the manufactured option.
VA Loan Types Available for Manufactured Homes
- Purchase Loan: Finance home and land together
- Construction Loan: Finance new manufactured home setup
- Cash-Out Refinance: Refinance and extract equity.
- Streamline Refinance: Refinance existing VA loan
Note: Not all lenders offer every loan type for manufactured homes.
Unique Challenges with VA Loans for Manufactured Homes
- Higher Lender Risk: Perceived depreciation and resale difficulty
- Stricter Appraisals: Greater scrutiny of foundation, structure, and zoning
- Limited Lender Options: Fewer VA-approved lenders finance manufactured homes
- Movement Restrictions: Home should not have been moved more than once
Pro Tip: Choose a lender experienced in VA and manufactured housing loans.
Guidance by Buyer Type
First-Time Homebuyers
- Use a VA loan calculator to estimate affordability
- Confirm HUD compliance and foundation standards
- Partner with a VA-knowledgeable real estate agent
Real Estate Agents
- Ensure the home is double-wide and legally classified as real property
- Check zoning and community restrictions
- Coordinate closely with VA lenders
Investors
- Target areas with high demand (e.g., rural/retirement communities)
- Confirm property and leasing compliance with VA occupancy standards
- Consider refinancing to extract equity
Helpful Resources
- VA Home Loan Program Overview
- HUD Manufactured Home Standards
- VA COE Application Guide
- VA Mortgage Calculator
- Understanding the VA Appraisal Process
Final Thoughts
If you’re eligible and the home meets VA guidelines, a VA loan can make buying a manufactured home affordable and accessible. But due to specific requirements and limited lender participation, preparation is key.
Next Steps:
- Use the VA loan calculator
- Speak to a VA-approved lender who offers manufactured home financing
- Connect with a real estate agent experienced in VA transactions