VA Mobile Home Loans: What You Need to Know
Buying a home can be overwhelming, with so many different loan options available. If you are a veteran, you might be considering a VA loan for your mobile home purchase. The good news is, the Department of Veterans Affairs does offer VA loans for mobile homes. However, there are some important details you’ll need to consider before applying.
Things to Consider
- The manufactured home must be your primary residence. Your manufactured home must be your primary residence and you will need to occupy the home within a reasonable period of time after closing. Second homes and investments properties are not eligible for VA mobile home loans.
- You must have permission to put the home on the land. Your loan must be secured by a lot or piece of land that you own or have legal permission to use. The mobile home must also meet the requirements for minimum foundation systems and meet applicable local, state, and federal regulations.
- You must meet credit, income and other requirements. To qualify for a VA loan, you need to meet credit, income and other requirements set forth by the Department of Veterans Affairs. VA loan requirements are stricter than for other loan types, so it’s important to be prepared and understand your eligibility before applying.
Benefits of VA Mobile Home Loans
Because of the strict requirements for VA loans, there are some great benefits to using one for a mobile home.
- You could secure a competitive interest rate. Because the VA guarantees portion of the loan, lenders tend to offer competitive interest rates without requiring a down payment.
- You will not likely pay private mortgage insurance. With a VA loan, mortgage insurance is not required which could save you money in the long run.
- You could reduce closing costs. Closing costs for VA loans are often minimal, leaving you with more funds for repairs and other related expenses.
Ultimately, if you’re a veteran and looking for a loan to purchase a mobile home, a VA loan may be a great option. Make sure to research what is required and if you qualify before applying.
What other loans does the VA provide?
In addition to providing home loans, the VA also provides funding for Native American direct and native veterans direct home loans, adaptive housing grants, manufactured home and modular home loans, Specially Adapted Housing grants, Survival and Transitional Assistance grants, and reasonable hardship loans.
What is a VA interest rate reduction loan?
A VA Interest Rate Reduction Loan (IRRRL) is a simple way for eligible Veterans and military members to refinance their existing VA home loan. The purpose of the IRRRL is to reduce interest rates, helping Veterans and military members save money over the life of the loan.
The IRRRL can also be used to refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage and to refinance a mobile home loan into a VA loan.
To obtain an IRRRL, you must have an existing VA loan, which must be refinanced under the same terms, payoffs and conditions. The new IRRRL must also provide a substantial benefit to you, as the borrower.