If you own a manufactured home and are a veteran, active-duty service member, or eligible surviving spouse, you may wonder: Can I refinance with a VA loan to save money or get better terms? The good news is yes-you can. VA loans aren’t just for traditional houses; they can also help you refinance a manufactured home, provided you meet certain requirements.
In this guide, we’ll break down everything you need to know about refinancing a manufactured home with a VA loan, including eligibility, benefits, the refinancing process, and tips to secure the best rates.
VA Loan Basics
The VA loan program, backed by the U.S. Department of Veterans Affairs, helps eligible military members and veterans finance homes without requiring a down payment or private mortgage insurance (PMI).
When it comes to manufactured homes, VA loans can be a game-changer. Many private lenders are hesitant to finance or refinance manufactured homes because they view them as higher risk. The VA guarantee reduces that risk, opening the door for veterans to refinance on more favorable terms.
VA Refinance for Manufactured Homes
Refinancing your manufactured home loan through the VA can offer several advantages:
- Lower interest rates → Reduce monthly payments and save over the life of the loan.
- Switch loan types → Move from an adjustable-rate mortgage (ARM) to a fixed-rate VA loan for stability.
- Remove PMI → If your current loan requires mortgage insurance, refinancing into a VA loan can eliminate that cost.
- Cash-out options → Tap into your home equity for renovations, debt consolidation, or other financial needs.
- Streamlined refinancing → If you already have a VA loan, the Interest Rate Reduction Refinance Loan (IRRRL) offers a fast, low-hassle path to refinancing.
Manufactured Home VA Loans
Before refinancing, it’s essential to confirm that both you and your home qualify:
Personal Eligibility
You must meet VA service requirements, typically:
- 90 days of active duty during wartime, OR
- 181 days of active duty during peacetime, OR
- 6 years in the National Guard/Reserves, OR
- Be an eligible surviving spouse.
Manufactured Home Requirements
The VA has specific rules for manufactured homes:
- The home must be classified as real property (not personal property like a vehicle). This usually means it’s permanently affixed to a foundation.
- It must meet VA property standards, including durability, safety, and adequate living space.
- The home must be your primary residence (no vacation or investment properties).
VA Refinance Options
There are two main ways to refinance a manufactured home with a VA loan:
1. VA Interest Rate Reduction Refinance Loan (IRRRL)
Also known as the “VA Streamline Refinance,” this is the simplest route if you already have a VA loan.
- Minimal paperwork.
- No new appraisal in many cases.
- Lower funding fee.
- Designed to lower your interest rate quickly.
2. VA Cash-Out Refinance
This option works whether your current loan is VA-backed or not.
- Replace your existing loan with a VA loan.
- Borrow more than what you owe and take the difference in cash.
- Requires full underwriting, appraisal, and credit checks.
- Good for homeowners looking to consolidate debt or fund improvements.
Step-by-Step VA Refinance
- Check Your Eligibility
Obtain your Certificate of Eligibility (COE) from the VA or ask your lender to pull it for you. - Confirm Property Requirements
Make sure your manufactured home meets VA standards and is permanently affixed. - Choose the Right Refinance Option
- IRRRL if you already have a VA loan.
- Cash-out refinance if you don’t or want equity access.
- Shop Around for Lenders
Not all lenders offer VA refinancing for manufactured homes. Compare rates and fees carefully. - Submit Your Application
Provide income, employment, and credit documentation (more extensive for cash-out refinance). - Get an Appraisal (if required)
The VA appraisal will confirm your home meets minimum standards and is valued correctly. - Close the Loan
Once approved, you’ll close on the refinance, possibly lowering your monthly payment immediately.
VA Manufactured Home Refinance Tips
- Improve your credit score → Higher credit can still impact the rates you get.
- Reduce other debts → A stronger debt-to-income (DTI) ratio improves approval chances.
- Shop multiple lenders → Some specialize in VA manufactured home loans.
- Understand fees → VA funding fees and lender closing costs vary, so weigh the total cost.
- Act when rates are low → Timing can make a huge difference in your savings.
VA Refinance Challenges
While VA refinancing is a strong option, here are some hurdles to be aware of:
- Limited lender participation → Not every VA-approved lender works with manufactured homes.
- Strict property requirements → Homes that aren’t permanently affixed or don’t meet VA standards may be ineligible.
- Equity limitations → Some lenders may require more equity in manufactured homes compared to traditional homes.
The good news? With persistence and the right lender, these obstacles can usually be overcome.
FAQs
1. Can I refinance a manufactured home I bought with a non-VA loan?
Yes. A VA cash-out refinance lets you replace your current loan (FHA, USDA, or conventional) with a VA-backed loan.
2. Do all lenders allow VA refinancing for manufactured homes?
No. Some lenders don’t work with manufactured housing, so it’s important to shop around.
3. Do I need an appraisal to refinance with the VA?
For a cash-out refinance, yes. For an IRRRL, often no—but it depends on your lender.
4. Is there a funding fee for VA refinancing?
Yes, but it’s often lower for IRRRL refinances. Disabled veterans may qualify for a funding fee exemption.
Final Thoughts
Refinancing a manufactured home with a VA loan can be one of the smartest financial moves for veterans and service members. Whether you’re looking to cut your monthly payments, secure a better rate, or access your home’s equity, the VA loan program makes refinancing more accessible and affordable than most alternatives.
The key is ensuring your home meets VA requirements and finding a lender experienced with manufactured housing. With the right approach, you can put your VA benefits to work and enjoy significant long-term savings.