What Does the VA Say About Loans for Mobile Homes?
A number of questions have come in recently about VA-guaranteed loans for manufactured homes or mobile homes. Some people mistakenly believe mobile homes are not eligible for VA mortgages, but that is simply not true.
Any manufactured home that meets VA standards is eligible for a VA loan. The buyer should remember that while the Department of Veterans Affairs can’t force a lender to issue a home loan to a borrower, VA regulations do cover loans for mobile homes as long as they meet the following requirements:
A mobile home won’t be considered for a VA guaranteed loan unless it is installed on a permanent foundation–one that meets VA requirements. Many people ask about tie-downs for mobile homes, and the VA rules are clear on the issue.
“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.”
If a VA loan applicant is having a manufactured home assembled or constructed for them, the VA does not require that builder to have a VA builder ID number, but the company responsible for installing the foundation is required to have one. Additionally, the VA requires the foundation to be covered by a one-year VA builder’s warranty that is signed by the builder.
The VA won’t cover loans for relocation of mobile homes, and borrowers should remember that even though a mobile home meets all VA standards, if the bank won’t approve a loan application for the home, the VA can’t force the lender to do so.
When applying for a VA home loan, it’s a good idea to ask the lender in advance the best way to proceed for loan approval. Some approaches may be more attractive to a lender than others–especially if you’re buying land in conjunction with the mobile home. Much depends on your individual circumstances, credit and the terms of the loan itself.