Will VA Finance a Manufactured Home?
Manufactured homes, also known as mobile homes, have become a popular and cost-effective housing option for many Americans. However, when it comes to financing these homes, some potential homeowners may wonder if the VA loan program will cover the purchase of a manufactured home. In this article, we will explore whether the VA will finance a manufactured home and what you need to know before making your decision.
Understanding VA Loans
The VA loan program is designed to help eligible veterans, active-duty military members, and their surviving spouses purchase homes with little to no money down. VA loans are backed by the U.S. Department of Veterans Affairs and offer competitive interest rates and flexible terms. While the VA loan program is primarily aimed at traditional single-family homes, it is important to note that it does have specific requirements for financing manufactured homes.
VA Loan Eligibility for Manufactured Homes
To finance a manufactured home with a VA loan, the home must meet certain criteria. First, the home must be classified as a real property, meaning it is permanently affixed to a foundation. This ensures that the home is not considered a personal property, which is not eligible for VA financing. Additionally, the home must be classified as a residence, not a commercial property.
VA Loan Requirements for Manufactured Homes
When applying for a VA loan to finance a manufactured home, there are several requirements that must be met:
1. The home must be new or be purchased from a dealer.
2. The home must be located on a permanent foundation.
3. The home must meet certain construction and safety standards.
4. The home must be used as the primary residence of the borrower.
VA Loan Limitations
While the VA loan program does offer financing for manufactured homes, there are limitations to the amount you can borrow. The VA loan limit for a manufactured home is generally set at 90% of the home’s appraised value or the sales price, whichever is less. This is to ensure that the borrower does not overpay for the home.
Conclusion
In conclusion, the VA will finance a manufactured home, but it is important to understand the specific requirements and limitations of the program. By ensuring that the home meets the criteria for VA financing and understanding the loan limits, eligible veterans and active-duty military members can take advantage of the benefits offered by the VA loan program to purchase a manufactured home. Always consult with a VA loan specialist to ensure that you are eligible and to guide you through the process.
