VA loans can finance manufactured homes, but specific criteria apply. While VA loans lack upper limits for those with full entitlement, VA Loan Limits for Manufactured Homes may be influenced by lender restrictions and partial entitlement, adhering to FHFA standards. Homes must be permanently affixed to land and meet VA property requirements. Financing options include purchase, cash-out refinance, and IRRRL, though chattel loans are an alternative for non-permanent homes.
Understanding VA Loan Limits for Manufactured Homes
VA loans offer a great way for veterans and active-duty service members to finance a home with favorable terms. However, when it comes to manufactured homes, there are specific loan limits and requirements to keep in mind. Understanding these limits can help you plan your home purchase and avoid surprises during the loan process.
Do VA Loans Have a Maximum Limit?
As of 2020, VA loans no longer have loan limits for borrowers with full entitlement. This means that eligible veterans can borrow as much as a lender is willing to approve, without a cap imposed by the VA.
However, if you have partial entitlement—for example, if you have an active VA loan or have defaulted on a previous one—VA loan limits still apply. These limits are set annually by the Federal Housing Finance Agency (FHFA) and vary by county.
2024 VA Loan Limits
- Standard Loan Limit: $766,550 in most U.S. counties
- High-Cost Areas: Up to $1,149,825
- No Limit for Full Entitlement: If you have full VA entitlement, you can borrow beyond these limits with lender approval
For manufactured homes, lenders may impose additional loan restrictions based on factors like home type, age, and whether the home is permanently affixed to a foundation.
VA Loan Eligibility for Manufactured Homes
To qualify for a VA-backed loan on a manufactured home, you must meet the following criteria:
✔ VA Eligibility: You must be an eligible veteran, active-duty service member, or surviving spouse with a valid Certificate of Eligibility (COE).
✔ Home Classification: The manufactured home must be permanently affixed to land (classified as real property) and comply with local building codes.
✔ Property Standards: The home must meet VA’s Minimum Property Requirements (MPRs) to ensure safety and habitability.
✔ Credit & Income: While the VA does not set a minimum credit scores, most lenders require a credit score of 580-620+ and stable income.
If the manufactured home is not permanently affixed, it is considered personal property, making it ineligible for traditional VA financing.
Financing Options for Manufactured Homes with a VA Loan
1. VA Purchase Loan
This is the most common VA loan option for buying a new or existing manufactured home. Benefits include:
- 0% down payment required
- No PMI (Private Mortgage Insurance)
- Competitive interest rates
- Flexible credit requirements
However, some lenders may be reluctant to finance manufactured homes due to depreciation concerns and additional risk.
2. VA Cash-Out Refinance Loan
If you already own a manufactured home, a VA Cash-Out Refinance allows you to:
- Refinance an existing loan (VA or non-VA) into a VA-backed mortgage
- Cash out equity for home improvements or other expenses
- Potentially secure a lower interest rate
3. VA Interest Rate Reduction Refinance Loan (IRRRL)
Also called the VA Streamline Refinance, this option is designed for borrowers with an existing VA loan. Benefits include:
- Lower interest rates and monthly payments
- No income verification or home appraisal required (in most cases)
- Quick and simple refinancing process
4. VA Construction Loan for Manufactured Homes
If you want to purchase a brand-new manufactured home, you may qualify for a VA construction loan. However, there are additional restrictions:
✔ The home must be permanently affixed to land
✔ The builder must be VA-approved
✔ A VA appraisal and inspections are required
Due to lender reluctance, VA construction loans for manufactured homes are less common than traditional VA purchase loans.
5. Chattel Loans (Non-VA Alternative)
If your manufactured home is not on a permanent foundation, a chattel loan may be an alternative financing option. These loans:
✔ Finance mobile homes not classified as real estate
✔ Have higher interest rates than VA loans
✔ Require a larger down payment (5-35%)
While not backed by the VA, chattel loans can be useful if you plan to place your home in a mobile home park or leased land.
Comparing VA Loans to Other Financing Options
Financing Option |
Down Payment |
Interest Rate |
Credit Requirement |
| VA Loan | 0% | Low | 580-620+ |
| FHA Loan | 3.5% | Moderate | 500-580 (with conditions) |
| Conventional Loan | 5-20% | Varies | 620+ |
| Chattel Loan | 5-35% | Higher | 600+ |
Key Takeaway: VA loans offer the best terms for eligible borrowers, but alternative financing options may be necessary depending on the property type and lender restrictions.
Step-by-Step Guide to Applying for a VA Loan on a Manufactured Home
Step 1: Obtain Your COE (Certificate of Eligibility)
- Apply through the VA eBenefits portal or a VA-approved lender.
- Provide service records or discharge papers (DD-214).
Step 2: Choose Your Lender
- Work with a lender that specifically finances manufactured homes.
- Compare rates and loan terms.
Step 3: Select a Manufactured Home
- Ensure the home meets VA’s property requirements.
- Confirm it is permanently affixed to land.
Step 4: Get Pre Approved
- Provide financial documents (income, credit score, debts).
- Determine your maximum loan amount.
Step 5: Complete VA Appraisal & Underwriting
- The home must pass a VA-approved appraisal.
- Lenders verify income, credit, and property conditions.
Step 6: Close the Loan & Move In
- Review and sign final loan documents.
- Receive loan funding and move into your home!
Conclusion: Is a VA Loan Right for Your Manufactured Home?
If you are an eligible veteran or service member, VA loans provide a cost-effective and flexible way to finance a manufactured home. By leveraging zero down payment benefits, competitive rates, and refinancing options, you can make affordable homeownership a reality.
Ready to explore VA financing? Use a VA loan calculator or speak with a VA-approved lender today to determine your best options.