The VA loan program is a great benefit for veterans and active-duty service members, providing a pathway to home ownership with favorable terms. Many don’t realize that this option extends to manufactured and modular homes as well. This article outlines the steps and considerations for using a VA loan to purchase a manufactured or modular home.

Understanding VA Loans for Manufactured Homes

A VA loan is designed to help military members secure affordable housing. While traditionally associated with site-built homes, these loans can also apply to manufactured or modular homes under certain conditions.

Distinguishing Between Manufactured and Modular Homes

Before applying for a VA loan, it's crucial to understand the differences between manufactured and modular homes:

• Manufactured Homes: These homes are built in a factory, transported to the site, and are often not permanently affixed to the land.
• Modular Homes: These are also built in a factory but are assembled on-site and typically follow the same building codes as traditional homes.

Eligibility Requirements

To use a VA loan for a manufactured or modular home, you must meet certain eligibility criteria:

• You must be an eligible veteran or active-duty service member.
• Your credit score should meet the minimum requirements set by the lender.
• The home must be your primary residence.

Steps to Secure a VA Loan for a Manufactured Home

1. Find a Lender

Not all lenders are experienced in VA loans for manufactured homes, so it’s important to find one who specializes in this area. Look for lenders who understand the specific requirements associated with these types of homes.

2. Obtain a Certificate of Eligibility (COE)

Before applying for a loan, you’ll need a Certificate of Eligibility (COE) from the VA. This document verifies your eligibility for the VA loan benefit. You can obtain the COE online through the VA's website, via your lender, or by mailing in your application.

3. Choose the Right Home

When looking for a manufactured or modular home, ensure that it meets VA guidelines. The home must be:

• Built after June 15, 1976, for manufactured homes.
• On a permanent foundation.
• Approved by an appraiser familiar with manufactured housing.

4. Get an Appraisal

Once you’ve chosen a home, the lender will need to order a VA appraisal. The appraisal assesses the home’s value and ensures it meets the minimum property criteria set by the VA.

5. Complete the Loan Application

Submit your loan application along with the necessary documentation, including income verification, credit history, and details about the property. Be prepared to answer questions specific to your financial status and the property itself.

6. Close on the Loan

Upon approval, you’ll proceed to the closing process, where you’ll finalize the loan details, sign necessary paperwork, and take ownership of your new home.

Consider Additional Costs

While VA loans offer numerous benefits, there are additional costs associated with purchasing a manufactured or modular home, including:

• Land costs if you do not already own the land.
• Site preparation expenses, such as foundation work.
• Insurance and property taxes.

Conclusion

Using a VA loan to purchase a manufactured or modular home can be a smart financial decision for veterans and active-duty service members. By understanding the eligibility requirements, working with knowledgeable lenders, and following the proper steps, you can successfully navigate the process of home ownership.

For further assistance and personalized advice, consider reaching out to a VA loan specialist who can guide you through every aspect of the home-buying journey.