Thinking of using your VA benefits to buy a manufactured home? You’re not alone. With rising housing prices and affordability top of mind, many veterans and service members are turning to manufactured homes as a smart, cost-effective housing solution. However, navigating VA loan eligibility for these types of properties can be more complex than for traditional homes.
This comprehensive guide breaks down everything you need to know—whether you’re a first-time homebuyer, a seasoned investor, or a real estate professional helping clients explore their options.
What Are VA Loans for Manufactured Homes?
VA loans are mortgage loans backed by the U.S. Department of Veterans Affairs. They offer numerous benefits, including:
- No down payment required (in most cases)
- Competitive interest rates
- No private mortgage insurance (PMI)
- Flexible credit requirements
Manufactured homes (often called mobile homes) are built in a factory and then transported to a site. Once permanently affixed to a foundation, they may qualify for VA financing—but only under specific conditions.
Many people confuse manufactured homes with modular or prefab homes. Unlike modular homes, which are typically treated the same as traditional homes by most lenders, manufactured homes must meet more stringent VA-specific requirements to qualify for financing.
Key Eligibility Requirements for VA Loans on Manufactured Homes
1. Borrower Eligibility
The borrower must first meet general VA loan eligibility requirements:
- Be an active-duty service member, veteran, or eligible surviving spouse
- Obtain a Certificate of Eligibility (COE) from the VA
- Meet standard credit and income guidelines
Tip: You can apply for your COE online.
2. Property Requirements
To qualify for a VA loan, the manufactured home must meet strict VA property standards:
Permanent Foundation
- The home must be permanently affixed to a foundation that complies with VA regulations.
- It cannot remain on wheels or a chassis.
HUD Code Compliance
- Must be built after June 15, 1976 and comply with HUD Manufactured Home Construction and Safety Standards.
- Look for the red certification label on the exterior of each transportable section.
Double-Wide Minimum
- VA and most lenders do not finance single-wide homes.
- A double-wide or larger home is typically required.
Land Ownership or Long-Term Lease
- You must either own the land where the home is located or have a lease of at least 20 years.
- The lease agreement must be recorded and legally enforceable.
Utilities and Accessibility
- The property must have adequate water, electricity, and sewage systems.
- It must be accessible via a public or private road, suitable for standard vehicles.
Appraisal and Inspection
- The home must pass a VA appraisal to ensure it meets Minimum Property Requirements (MPRs).
- Additional inspections may be required if the structure has been moved more than once.
Loan Limits and Options for Manufactured Homes
VA Loan Limits
Although the VA eliminated official loan limits for borrowers with full entitlement, lenders may still impose caps, especially for manufactured homes due to perceived risk.
Loan Type |
Typical Maximum |
Notes |
| Manufactured Home + Land | ~$100,000 – $150,000 | Lender and location dependent |
| Site-Built Home | No VA-imposed cap | Based on income and entitlement |
VA Loan Types
- Purchase Loan: Buy a manufactured home and land together.
- Refinance Loan: Refinance an existing VA or non-VA loan.
- Construction Loan: Finance the purchase and installation of a new manufactured home.
- Cash-Out Refinance: Refinance and extract equity.
Note: Not all VA-approved lenders offer all loan types for manufactured homes.
What Sets Manufactured Home Loans Apart?
Manufactured home financing is more complex than site-built homes for several reasons:
- Higher Lender Risk: Manufactured homes may depreciate faster and are harder to resell.
- Stricter Appraisals: Appraisers scrutinize foundations, structural integrity, and local zoning.
- Fewer Lenders: Not every VA-approved lender finances manufactured homes.
- Higher Rates: Interest rates may be slightly higher compared to site-built homes.
- Movement Restrictions: VA typically allows financing only if the home hasn’t been moved more than once.
Pro Tip: Choose a lender experienced in VA loans and manufactured home financing.
Real-Life Financial Example
Here’s how buying a manufactured home with a VA loan stacks up against a site-built home:
Feature |
Manufactured Home |
Site-Built Home |
| Purchase Price | $120,000 | $250,000 |
| Down Payment (VA Loan) | $0 | $0 |
| Monthly Mortgage (4.5% APR, 30 years) | ~$607 | ~$1,265 |
| Annual Property Taxes | ~$800 | ~$2,500 |
Monthly Savings: Over $650/month with a manufactured home.
Additionally, utility costs and insurance for manufactured homes are often lower, although some insurers may charge more due to perceived risks.
Tips by Buyer Type
For First-Time Homebuyers:
- Get pre-approved with a lender experienced in manufactured housing
- Verify that the home meets all HUD and VA foundation standards
- Use a VA mortgage calculator to estimate payments
- Ask your real estate agent to confirm zoning compatibility and title classification (real vs personal property)
For Real Estate Agents:
- Highlight whether the manufactured home is double-wide and taxed as real property
- Confirm the home meets local zoning laws and community restrictions
- Partner with lenders who offer VA manufactured home loans
- Educate clients on appraisal timelines and potential delays due to inspections
For Investors:
- Focus on regions where manufactured homes are in high demand (e.g., rural areas, retirement communities)
- Understand zoning, leasing, and resale conditions
- Consider VA-backed refinancing to access equity for future projects
- Ensure all rental agreements and home titles meet VA occupancy standards
Helpful Links and Resources
- VA Home Loan Program Overview
- HUD Manufactured Home Standards
- VA Loan COE Application
- VA Mortgage Calculator
- Understanding the VA Appraisal Process
Final Thoughts: Is a VA Loan Right for Your Manufactured Home?
If you’re eligible and the property meets all VA requirements, a VA loan can be an excellent way to finance a manufactured home. It provides low or no-down-payment financing, competitive rates, and flexibility. However, due to the stricter requirements and fewer lenders, planning and working with experienced professionals is crucial.
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
