Have you wondered if a VA loan can help you buy a manufactured home? For many veterans and active-duty service members, it’s a practical path to affordable homeownership. Manufactured homes cost less than site-built houses, and VA loans remove some of the biggest financial hurdles.
Below is a clear look at how VA loans work for manufactured homes, what you need to qualify, and steps to avoid common pitfalls.
Why a VA Loan Works Well for Manufactured Homes
VA loans offer benefits that reduce upfront and monthly costs. If you’re eligible, you get access to terms that most civilian borrowers don’t.
Key advantages include:
- No Down Payment: VA loans allow 100% financing for borrowers with full entitlement. This means no upfront cash for a down payment, making it easier to close.
- No Private Mortgage Insurance (PMI): Conventional loans with small down payments require PMI every month. VA loans do not. You pay a one-time funding fee instead, which you can roll into the loan. This lowers monthly payments and saves thousands over time.
- Competitive: Interest Rates
Lenders often offer lower rates on VA loans than on other loan types. This means more affordable payments over the life of the loan. - Limited Closing Costs: The VA caps what lenders can charge. Sellers and lenders can also pay many of your closing costs, easing the cash needed at closing.
Check Your Eligibility First
The first step is confirming you qualify for the VA benefit. You need a Certificate of Eligibility (COE) to show your lender.
Who qualifies:
- Active-duty service members after 90 continuous days
- Veterans who meet minimum service requirements
- National Guard or Reserve members with at least six creditable years
- Certain surviving spouses
How to get your COE:
- Ask your lender to pull it through the VA’s WebLGY system
- Apply online at VA.gov
- Mail VA Form 26-1880
Lenders also review your credit and income. The VA does not set a minimum credit score, but most lenders look for 580–640. Residual income (what’s left after bills) matters a lot, so strong cash flow can offset mid-tier credit scores.
Know the Property Rules
The VA sets strict standards to protect you and ensure the home is a secure investment. Manufactured homes must:
- Be Real Property: The home must be permanently affixed to a foundation and titled as real property under state law. Homes on leased land or in mobile home parks usually do not qualify for standard VA financing.
- Meet Foundation Standards: The foundation must comply with HUD’s Permanent Foundations Guide for Manufactured Housing. An engineer must certify compliance.
- Be Built to HUD Code: Check the home’s HUD tags on the exterior and the data plate inside. Homes built before June 15, 1976 typically do not qualify.
- Meet Minimum Size Requirements: At least 400 square feet for single-wide homes and 700 square feet for double-wide. Some lenders do not finance single-wide homes at all.
- Not Have Been Relocated: Homes moved from one site to another may face tougher inspections. Some lenders will not finance a previously installed home.
Step-by-Step Guide to Buying
Use this simple roadmap to reduce delays:
- Prepare Early: Obtain your COE. Pay down credit cards. Avoid new credit inquiries 60–90 days before applying.
- Find the Right Lender: Not all VA lenders finance manufactured homes. Look for lenders experienced with these loans. Compare total costs from at least three lenders, not just the rate.
- Choose a Home and Make an Offer: Work with an agent who understands VA requirements. Your contract must include the “VA Escape Clause,” which lets you exit without penalty if the home appraises below the sale price.
- VA Appraisal and Home Inspection: The lender orders a VA appraisal to confirm value and minimum property requirements. This is not a home inspection. Hire a qualified inspector to evaluate plumbing, electrical, and roof systems.
- Close on the Loan: Once underwriting and appraisal clear, you sign the documents and get the keys.
Know the Costs
Even with VA benefits, plan for key expenses:
Cost Type | Description | Estimated Range |
VA Funding Fee | One-time fee paid to the VA. Often financed into the loan. Exemptions for veterans with service-connected disabilities. | 0.5%–3.6% of loan amount |
Closing Costs | Appraisal, title search, recording fees, lender charges. | $2,000–$5,000+ |
Foundation Certification/Retrofit | Engineer fees or construction work to meet standards. | $800–$15,000+ |
Land Purchase | If you need to buy the lot. | Market-dependent |
Avoid Common Pitfalls
Many deals fall apart due to foundation and title issues. Address these early.
- Confirm the home is titled as real property before making an offer.
- Hire an engineer to certify the foundation upfront.
- Expect fewer lenders. Start your search early.
- Remember that manufactured homes may appreciate more slowly than site-built homes, especially without owned land in a desirable area.
Tips for a Smooth Purchase
Practical steps improve your approval odds:
- Focus on HUD-code homes already on a permanent foundation and titled as real property.
- Keep at least two months of mortgage payments in reserves.
- Show a 12-month history of on-time rent payments to strengthen your application.
- Check your remaining VA entitlement if you plan to keep your first VA-backed home as a rental.
Takeaway
A VA loan for a manufactured home can be a strong path to ownership for veterans and active-duty service members. You get 100% financing, no PMI, capped fees, and often lower rates. But you need to meet both borrower and property requirements.
By preparing early, targeting the right properties, and choosing a lender experienced with manufactured homes, you position yourself for a smoother process and fewer surprises.