VA Loans for Manufactured Homes

VA loans are a powerful mortgage option from the United States Department of Veterans Affairs to help veterans and active military members become homeowners. It’s important to understand the specific benefits and requirements of using a VA loan to purchase a manufactured home. At CIS Moving Home, our expert team assists at every step of the VA loan application process to help you get the financing you need.

The Benefits of VA Loans

The power of a VA loan for land and modular homes comes from the many unique benefits this financing option offers over traditional mortgage types:

  • No down payments
  • No monthly mortgage insurance
  • Competitive interest rates
  • Lower credit requirements
  • Limits on closing costs
  • Lifetime benefit
  • No prepayment penalties
  • No borrowing limits

Features and Requirements

Borrowers can use a VA loan to purchase a manufactured home and put it on land they already own. They can also use it to buy land and the house simultaneously or to refinance a manufactured home to put on a rented lot. Here are some additional features and requirements of VA loans:

  • Applicants can apply with low credit scores.
  • Borrowers do not have to pay a monthly fee for private mortgage insurance.
  • 100% financing is available.
  • Applicants who currently have a VA loan can streamline their refinancing options.
  • Sellers can pay a part of closing costs.
  • Applicants must be a veteran, reserve member or on active duty.

One of the main requirements of VA financing for modular homes is that the applicant has proof of service. Once the applicant can verify their service, they are subject to additional eligibility requirements such as a credit score of at least 580. The purchased property must be the applicant’s primary residence.

How Do VA Loans Work?

The United States Department of Veterans Affairs does not issue the funds for a VA loan but determines who qualifies for these loans and which lenders can issue them. A VA loan for modular homes and land creates less risk for lenders because a government agency backs them.

Who Are VA Loans Best For?

VA loans are best for veterans and other military members who are first-time or experienced home buyers. Since VA loans for land and manufactured homes have lifetime benefits after repayment in full, veterans can restore their loans’ full entitlement. Veterans and military members also have to option to rent out their first home and purchase it again without a down payment with their remaining entitlement.

What Are the General Requirements?

The general credit requirements of a VA loan are more lenient than many mortgage programs. All applicants must meet at least one of the following service requirements to be eligible for a VA loan:

  • Served for 181 days of active service during peacetime
  • Served 90 consecutive days of active service in wartime
  • Served for more than six years with the National Guard or Reserves or at least 90 days until Title 32, with at least 30 of those 90 days being consecutive

To prove to a lender that you’re eligible for a VA home loan, you will also need to obtain a Certificate of Eligibility and demonstrate proof of service.

Contact CIS Moving Home to Learn More Today!

At CIS Moving Home, we help people achieve the American dream of homeownership. Contact us to learn more about our manufactured home financing programs or visit our sister site CIS Home Loans to apply for a VA loan today!