VA Loans For Manufactured Homes? A Reader Question
A reader asks, “I am interested in purchasing a home that has an additional manufactured home on it for my family to live in. I am getting the response that manufactured homes don’t qualify, yet (one of your articles) states that manufactured homes do qualify.”
There’s a difference between what the Department of Veterans Affairs allows under the VA loan program and what a lender might be willing to offer in terms of a VA mortgage. In the current housing market, some lenders are not willing to issue VA guaranteed home loans for manufactured homes or mobile homes.
Some lenders will be blunt with their loan applicants and simply explain that their financial institution is unwilling to issue loans for these types of properties at the current time. Others may try to shift the blame to VA rules and regulations in some cases. It’s important to understand the difference between what a particular bank is willing to do and what the VA loan rules say is an acceptable use for a VA-guaranteed mortgage.
Any lender who believes that it’s “VA loan rules” tying their hands, making them unable to issue VA mortgages on eligible manufactured homes may wish to review information on the Department of Veterans Affairs official site with regard to the current rules for VA mortgage loans.
VA loans are permitted for certain types of mobile homes and manufactured homes. They are not permitted for properties which do not (or cannot) meet VA standards.
The following is printed verbatim from the VA.gov page titled Construction And Valuation Frequently Asked Questions:
1. Will VA guaranty a loan to purchase a manufactured home, on a permanent foundation?
To be eligible for appraisal as real estate, VA requires that a manufactured home be installed on a permanent foundation meeting VA requirements. The VA Lender’s Handbook (VA Pamphlet 26-7) Chapter 12, Section 12.10, starting on page 12-20, covers the general requirements for manufactured home foundations. The Construction and Valuation Section at the VA Regional Loan Center having jurisdiction over the location of the manufactured home may be able to provide additional information specific to your area.
2. Are tie-downs required on manufactured homes?
Manufactured home foundation requirements are contained in Chapter 12, Section 12.10, of the VA Lender’s Handbook (VA Pamphlet 26-7) pages 12-20 and 12-21.
For both Existing Construction and Proposed or Under Construction, “The manufactured home unit must be properly attached to a permanent foundation system which is constructed to withstand both supporting loads and wind-overturning loads, and is acceptable to the building authority having jurisdiction.”
It’s clear from these statements that the Department of Veterans Affairs does guarantee VA home loans for manufactured homes that meet VA standards for foundations and other requirements.
In the case of this reader question, there may be some confusion over the bank’s policies, VA loan rules, or even the definition of the phrase “manufactured home”. Any manufactured home or mobile home must, in order to be eligible for a VA loan, meet the minimum property requirements as stated above and elsewhere in VA loan guidelines and regulations. For more information on VA standards for manufactured homes, call the VA at 1-800-827-1000.
Do you have questions about VA loans? Ask us in the comments section.