VA Loans and the Rules on Manufactured Homes
There are a lot of questions out there when it comes to VA loans for manufactured homes, also known as mobile homes. In some circles, the mobile home rules are not as well understood as the rules governing transactions for “typical” VA home loans; often, the standards are similar but with rules specific to the nature of the manufactured home.
For example, there’s no question about foundation issues when it comes to VA loans for new construction homes. A VA loan for a manufactured home is different—the home must be anchored to a foundation and the foundation must conform to VA standards. A manufactured home not anchored to a foundation can’t be approved for a VA mortgage.
But those are probably the most well-known standards for mobile homes. The VA also has rules about the location of a mobile home. Did you know a VA borrower is not required to own the land where the mobile home is located? The VA loan applicant may rent, but the rental property must live up to VA regulations.
Additionally, the mobile home site must conform to all local zoning laws and must be served by “water and sanitary facilities approved by the local public authority.”
The rental location must also be accessible by an all-weather road and must not “be subject to conditions that may be hazardous to the health or safety of the manufactured home occupants or that may endanger the manufactured home.”
For those who own the property where they want to place a mobile home purchased with a VA-guaranteed loan, the VA states, “No manufactured home purchased with a guaranteed loan may be placed on a lot owned by an eligible veteran or on a lot to be purchased or improved with the proceeds of a guaranteed manufactured home loan unless the lot owned or to be so purchased or improved is determined by the Department of Veterans Affairs to be an acceptable manufactured home site.”
VA rules for acceptable lots include requirements for health and safety, but they also have stipulations regarding the environment and “scenic conditions.”
The VA won’t approve a loan application for a manufactured home deemed to be part of an eyesore area or one intended to be located in an area where human habitation might be damaging to the environment. Those requirements might seem a bit nebulous to buyers and loan officers alike; in these cases, it’s best to get advice from the nearest regional VA loan center about what qualifies and what does not.
Jerry Ferguson
Can I purchase a mfg home that as been put on private property and title eliminated to real property - when said mfg home was aused home moved ther in other words twice moved? If yes where do I find the in VA Regs that stes this
Joe Wallace
When you say "title eliminated as real property", can you give some more detail? What are the circumstances there?
Phil Colozzi
Joe: I found a 1995 manufactured home in excellent condition on 5 ac that was moved back in 2008. That means it was moved once from the mfg and then to its current home. I have a VA loan already approved but will this make a difference to the appraiser? Thanks Phil Colozzi
Joe Wallace
I'm not sure that a relocation would affect the appraisal unless the home is currently not anchored to a permanent foundation. Foundation issues are crucial for loan approval.
Chris Wade
I'm looking at a manufactured home to purchase but it has been moved from another site to it's current one and I was wondering if the VA would finance it.
Rich B
I have a home, that in 1973 was a single wide. In 1984 it was properly permitted, and a Stick built house was built around it- so less than 25% of mobile remains in house. I had the tittle eliminated in 1996. New electrical, windvain, plumbing. Labor and industry re-evaluated the home and called it Stick built. I have had VA loan in 1997, and at least 3-4 other refy's since and every time, it was identified as stick built. Now a appraiser called it a mobile. And VA wants to call it a Mobile, under their- It started as a mobile always a mobile. Is there a way around this policy? thanks
Joe Wallace
You should speak to someone at the VA Regional Loan Center with jurisdiction over your area--find yours at http://www.benefits.va.gov/homeloans/contact_rlc_info.asp. Hope this helps!
Rich B
I did- they said- Once a mobile home, always a mobile home (A VA Policy) ... I asked to speak to their boss, no luck so far....
Robert Ferry
I am being told by the VA Loan Officer that Mobile Homes or modular homes may be a problem. May being the operative word here. So when are they not a problem? And where do I find the rules to go by? Thanks, Rob Ferry
Joe Wallace
In what way are you asking if they would be a problem?
gary robison
i am applying for a VA refinance on my home which i bought new 24 years ago. i do not have a concrete footing and i do not have brick underpinning.is that required in mississippi? the home was set up according to the Specs of the time all wheels removed and i have metal underpinning, the home is "strapped" dowm and on concrete blocks its been here and not been moved in 24 yrsWill i have problems
Joe Wallace
It's very possible that you will have issues refinancing unless the home is affixed to a permanent foundation as required by VA minimum property requirements.