Will VA Loans Finance Manufactured Homes?

Those who qualify for VA loans – typically, service members, retirees, and their spouses/family members – often wonder if VA loans can be applied toward manufactured homes. First, though, VA loans do not finance manufactured homes or any other types of properties. The VA acts as a guarantor of the loan. In other words, the VA agrees to bear the financial burden of the loan should the loan recipient default on the mortgage payment. This is another way to encourage lenders to grant mortgage loans in the first place to service members and veterans.

The question at hand is whether or not the VA will agree to guarantee a home loan given to a homeowner who is trying to buy a manufactured home. The VA has strict requirements for what kind of properties it will guarantee and who it will back in terms of homeowners and their qualifications. With that being said, the VA will guarantee loans for manufactured homes under certain guidelines.

The homebuyer who qualifies with the VA is entitled to a guaranty amount of 40% of the loan amount, or $20,000. This is not the same as the amount that a homebuyer may borrow. Any veteran who qualifies for VA home loans in general qualify for a manufactured home guarantee.

The VA will inspect the manufactured home and also the location of the home to ensure that the property is safe and worth the investment being placed into it through the loan. If the manufactured home qualifies and passes inspection, the VA moves one step closer to approving the loan and allowing the applicant to move forward. Manufactured home loans can also be used to purchase lots for existing manufactured homes.