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Manufactured Homes Made Simple

There are a few key rules you should know about in order to get a VA loan under a manufactured home.

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If you’re considering using a VA Loan on a manufactured home, I have some information that you’ll need to know.

To begin, you should know that you are, in fact, allowed to have a VA loan under a manufactured home. However, this can be difficult in certain cases. Though VA loans are technically allowed on both double-wide as well as single-wide homes, you will experience a great deal of difficulty in finding a lender who will do a VA loan for you on a single-wide home.

Along with this, there are some other rules. For example, a manufactured home needs to be compliant with any foundation requirements—the home must have a foundation that is attached to the ground, called a HUD-style foundation. Luckily, an engineer can inspect and retrofit this style of foundation on homes that don't already have one.

Additionally, any wheels or axles must be removed from the home. This is because, from a title standpoint, the home must be considered permanently one with the land.

Speaking of mobility, in order to get a VA loan under a manufactured home, the home must have been moved one or fewer times since its original installment.

The VA wants buyers to be safe and healthy within their homes.

To ensure that these requisites have been met, the home must go through a number of inspections, including a septic inspection, termite inspection, and, if there is one present on the property, a well inspection and water quality test.

While they are negotiable between the buyer and seller, the seller is no longer required to provide funds for these inspections so the impetus falls largely on the buyer to ensure that these inspections are carried out and paid for.

A final rule to keep in mind is that the home must be a 1976 or newer model.

This may seem like a lot, but all of the inspections and regulations required are for the benefit of the veteran—as the VA wants buyers to be safe and healthy within their homes.

Also, while many may say that acreages are not allowed under a VA loan with a manufactured home, this is not the case.

If you want more information on VA loans and manufactured homes, or if I can answer any other questions for you, feel free to get in touch by giving me a call or sending me an email. I look forward to hearing from you.

What Is the Anatomy of a VA Loan?

If you’re thinking of applying for a VA loan, here’s what you should know about them.

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The anatomy of a VA loan features four components: principal, interest, property taxes, and homeowners insurance.

In January 2017, the U.S. Department of Veteran Affairs increased the loan amount on a VA loan to $424,100. That’s called the “conforming limit,”  and it means in most states around the country, a veteran can borrow up to $424,100 with no down payment. In other areas of the country where housing is dramatically more expensive (Alaska, Hawaii, California, New York, etc.), the conforming limit is much higher than that.

VA loans don’t require any PMI (private mortgage insurance), but property taxes and insurance must be included with it. The Department of Veteran Affairs has compensated for the rise in home prices by offering jumbo loans or high-balance loans that go above the $424,100 limit. However, that’s also where the no down payment portion ends.

A VA Loan allows you to borrow up to $424,000 with no down payment.

If the purchase price of the home is above $424,100, you would have to pay 25% of the overage. For example, if a home is priced at $524,000—which is $100,000 over the limit—that means you’d pay $25,000. There is no limit as to how high you can purchase as you pay 25% of the overage

If you have any questions about the anatomy of a VA loan, don’t hesitate to reach out to me. As I always say, it doesn’t cost a penny to talk. Just give me a call and I’d be happy to help.

Types of Property You Can Buy With VA Financing

VA loans allow you to buy a wide variety of properties.

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If you plan to use a VA loan, you might be wondering what types of properties you can use your VA loan for. 

The most popular use is for a single-family residence, but you can also use a VA loan on a multi-family property like a duplex or triplex, but you can't go higher than four units in one building. To use it on a multi-family home, the cardinal rule is that the veteran must occupy one of the units as their primary residence. You can also use a VA loan for a condo if it's on the list of VA-approved condo associations, which I can send you.

You can use a VA loan for a townhouse, and it doesn't have to be on any list. You can also use it on manufactured homes that are 1976 or newer. It's allowed for single-wide or double-wide manufactured homes, but it's almost impossible to find a lender who will offer a loan on a single-wide. Manufactured homes must also be properly attached to the ground with a HUD-style foundation—it can't just be tied down sitting on concrete blocks.

You can buy multi-family properties up to four units with a VA loan.

You can also use VA loans for modular homes, which are growing in popularity. 

I get a lot of questions about using VA loans on acreages as well. Many lenders will tell you that you can't use it on a property with 20 or 30 acres, but that's simply not true. VA loans do not have a limit on acreage; it just has to make sense. More importantly, they want to know the use of the land because they don't want to finance a home if the veteran is going to use it for a for-profit use. 

Finally, you can, in fact, use a VA loan for a home with an agricultural tax exemption. You can't use it to buy raw land, however.

If you have any other questions about the types of property you can buy with a VA loan, don't hesitate to give me a call or send me an email. Like I always say, it doesn't cost a penny to talk.