Many first-time VA buyers believe they can’t purchase a manufactured home with a VA loan. But that’s far from the truth! The VA loan program does allow financing for manufactured homes—provided they meet specific requirements.

VA loans are one of the best financing options for veterans, active-duty service members, and eligible surviving spouses, offering benefits like zero down payment, competitive interest rates (APR varies based on credit score, loan amount, and lender policies.) and no private mortgage insurance (PMI). However, the rules for financing a manufactured home are slightly different from those for traditional single-family homes.

In this guide, we’ll walk you through everything you need to know about VA loans for manufactured homes, including eligibility requirements, benefits, the application process, and common myths. Plus, you’ll learn how working with Be My Neighbor Mortgage and ReAlpha can help you save on real estate transaction costs.

Many first-time VA buyers mistakenly believe they can’t purchase a manufactured home with a VA loan. This is just one of several common misconceptions about VA loans that prevent eligible veterans from fully utilizing their benefits.

Key Takeaways

• VA loans can finance manufactured homes – Eligible veterans and service members can use VA loans to purchase manufactured homes, provided they are permanently affixed to a foundation and meet VA and HUD standards.
  
• Zero down payment and no PMI – VA loans offer 100% financing, eliminating the need for a down payment or Private Mortgage Insurance (PMI), which can significantly reduce upfront and monthly costs.
  
• Lender and property requirements apply – Not all lenders finance manufactured homes, and the property must meet minimum property standards to qualify for VA-backed financing.
  
• Lower interest rates and potential tax benefits – VA loans typically feature competitive interest rates compared to conventional loans, and some veterans may qualify for property tax exemptions, depending on state benefits.

What is a VA Loan?

A VA loan is a government-backed mortgage option that offers exclusive benefits to eligible military borrowers. These loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and provided by VA-approved lenders, making homeownership more accessible for those who have served.

Can You Use a VA Loan for a Manufactured Home?

Yes, VA loans can be used to finance manufactured homes, but there are some conditions: 

 ✔ The home must be permanently affixed to a foundation and classified as real property.
✔ The home must meet HUD and VA minimum property standards.
✔ Borrowers must meet VA loan eligibility requirements (service requirements, credit score, and income verification).

Eligibility Requirements for VA-Backed Home Loans

To qualify for a VA loan for a manufactured home, you must: 

✔ Have a valid Certificate of Eligibility (COE).
✔ Meet the lender’s credit and income requirements. While the VA does not set a minimum credit score, most lenders seek approval for a 580+ credit score. Actual eligibility depends on lender policies and a full financial review.
✔ Plan to use the home as your primary residence.

For a deeper dive into eligibility criteria, check out our comprehensive guide on VA home loan requirements, which covers everything veterans need to know before applying.

Benefits of Using a VA Loan for Manufactured Homes

1. No Down Payment Required

Unlike conventional loans that may require 5-20% down, VA loans allow eligible buyers to finance 100% of the home’s purchase price.

2. Competitive Interest Rates

VA loans typically have lower interest rates compared to conventional and FHA loans (APR varies; see lender for details).

3. No Private Mortgage Insurance (PMI)

Unlike FHA and conventional loans, VA loans do not require PMI, reducing monthly mortgage costs.

4. Tax Benefits

VA home loans may qualify for property tax exemptions in certain states. Check your state’s veteran benefits for potential savings.

Although VA loans significantly reduce upfront expenses, understanding potential VA loan closing costs can help veterans better prepare for a smooth financial transition to homeownership.

VA Loan Requirements for Manufactured Homes

✔ The Property Must Be Permanently Affixed – VA loans only apply to manufactured homes that are permanently attached to land and classified as real estate.
✔ The Home Must Meet HUD and VA Standards – The home must comply with HUD Code safety and structural guidelines and meet the VA’s minimum property requirements (MPRs).
✔ Financing Options for Modular vs. Mobile Homes:

• Modular Homes: Easier to finance since they meet traditional home construction standards.
• Mobile Homes: Must meet additional guidelines and be permanently affixed.

How to Apply for a VA Loan for a Manufactured Home?

Step 1: Obtain a Certificate of Eligibility (COE)

A COE proves your eligibility for a VA-backed loan. You can get one through: 

✔ The VA eBenefits portal.
✔ A VA-approved lender.
✔ Mailing VA Form 26-1880 to the VA office.

Active-duty service members will also typically need a VA Loan Statement of Service alongside their COE to verify their service status during the application process.

Step 2: Find a VA-Approved Lender

Not all lenders finance manufactured homes. Be My Neighbor Mortgage  specializes in VA loans for manufactured homes and offers competitive rates.

Step 3: Get Pre-Approved

Lenders will evaluate your credit, income, and debt-to-income (DTI) ratio to determine your loan amount.

Step 4: Choose a Manufactured Home That Meets VA Standards

Ensure the home is permanently affixed and meets all VA property guidelines.

Step 5: Submit Your VA Loan Application

Your lender will process the loan, conduct an appraisal, and finalize approval before closing.

Final Word

VA loans provide a powerful financing option for veterans looking to purchase a manufactured home with zero down payment, lower interest rates, and no PMI. By ensuring the home meets VA and HUD standards and working with a VA-approved lender, first-time VA buyers can make homeownership more affordable.

If you’re already a homeowner looking to leverage your property for additional funds, consider exploring the VA Cash-Out Refinance, a powerful option that allows eligible veterans to refinance their mortgage and access home equity.

For veterans ready to secure their next home, Be My Neighbor simplifies VA loan financing, while reAlpha helps you save thousands by eliminating realtor commission fees. Additionally through its AI-driven property matching and direct seller negotiations. Their AI-powered platform identifies VA-loan-friendly homes, analyzes market trends, and optimizes financing to maximize savings.

📌 Be My Neighbor Mortgage, LLC | NMLS #1743790 | Equal Housing Lender.
📌 This is not a commitment to lend. All loans are subject to credit and underwriting approval. Rates and terms are subject to change.

Frequently Asked Questions (FAQs)

Can You Do VA on a Manufactured Home?

Yes, VA loans can be used to finance manufactured homes. However, the home must be permanently affixed to a foundation and meet VA and HUD standards. Borrowers must also meet VA loan eligibility requirements, including a valid Certificate of Eligibility (COE) and lender-specific credit and income qualifications.

What is the Maximum VA Home Loan Amount?

The VA does not set a specific loan limit for qualified borrowers with full entitlement. However, lenders may impose limits based on income, creditworthiness, and local housing market conditions. Veterans with full VA loan entitlement can obtain financing without a loan limit, while those with partial entitlement may be subject to county loan limits set by the Federal Housing Finance Agency (FHFA).

How Long Does It Take to Get Approved for a VA Loan on a Manufactured Home?

The approval process for a VA loan on a manufactured home varies based on lender processing times, documentation requirements, and the VA appraisal. On average, it takes 30 to 45 days from application to closing, but working with an experienced VA-approved lender can help speed up the process.