Here’s How to Get a VA Loan for a Manufactured Home
A manufactured home is basically a structure that’s built from prefabricated parts which are assembled on site. Think about playing with Legos only that you’re building an actual house!
Aside from being affordable and customizable, manufactured homes are also readily accessible to anyone, including veterans and active service members. Through the Department of Veterans’ Affairs, existing and former members of the US Armed Forces can avail of guaranteed loans for purchasing manufactured homes.
If you’re a veteran who’s out shopping for a manufactured home, here’s a guide on how you can secure VA financing for your very own custom-built living space.
1. Age eligibility for veterans and active personnel
Under basic guidelines, you are qualified for financing if you have been in the service after September 15, 1940. Active-duty personnel, on the other hand, are eligible if they have served for a minimum of 90 days during wartime and 181 days for peacetime. Either way, you will need to secure a Certificate of Eligibility from your local VA office. For this, you will have to obtain a DD-214 form that proves that you have met the time in service requirements under VA policies. This is just the first step in a lengthy process to getting the cash you need for finalizing the purchase.
2. Foundation and site requirements
When choosing a lot where you can assemble a manufactured home, it’s crucial to know if the site is near water and sewage utilities and if the site is ideal under VA rules. VA doesn’t have specific rules if you own or rent the lot where the manufactured home stands, so long as it stands on a permanent foundation as defined by local building codes.
The state of Texas requires for manufactured homes to be attached to a permanent foundation as stated in the HUD Permanent Foundation Guide for Manufactured Housing. This is so the properties stay where they currently rest, hence making it impossible for anyone to transfer them to another location and providing durable residences for veterans and their families. As per HUD guidelines, a structural engineer should assess the permanent foundation system of a manufactured home and determine if it complies with local standards. A property is qualified for VA financing if it’s able to meet the state’s permanent foundation requirements.
3. Maximum terms for financing
Manufactured homes can be financed through VA loans for up to 20 years as per VA guidelines compared to other types of properties which can qualify for 30-year loan terms. The reason behind this is that manufactured homes tend to depreciate over time. In fact, not many lenders are willing to approve VA manufactured home loans on the presumption that these are very likely to default.
In such a case, the most practical approach you can take is to apply for a short-term construction loan, which you can refinance once the home is completed. This provides fewer barriers as opposed to getting a standard VA mortgage.
Contact Arbrook Realty today for expert real estate services that cater to both retired and active members of the Armed Forces.