Home prices and interest rates continue to climb putting pressure on buyers looking for affordable housing. Due to the rise in cost, buyers may consider purchasing a manufactured home. These prefabricated homes, built in climate controlled factories, usually allow buyers to purchase at a lower price than other site built homes. In addition to keeping cost low, buyers often want low to no down payment.
Don’t just think of manufactured homes for first time home buyers. They are also great for downsizing or retirement buyers. Luckily, for current military, Veterans, and surviving spouses, VA loans offer a solution. Our VA loan manufactured home program looks to combine lower purchase prices, no down payment, and affordable mortgage terms.
VA Loan Manufactured Home Guidelines
Many lenders do not offer manufactured home loans. Even less provide VA loans for manufactured homes, but these homes are a necessary and desired portion of the housing industry. OVM Financial does offer this affordable financing option for manufactured homes. Additionally, A VA loan pre-approval is even available to ensure the best chances of up-front qualification.
VA Loan Requirements
- Doublewide or larger manufactured homes only
- Built June 15, 1976 or newer
- 640 credit score requirement – exceptions possible including limited credit
- Approved permanent foundation (see requirements below)
- Up to 100% of purchase price
- Cash out refinance up to 100% of VA appraised value
- Primary residence only
Finally, we offer 15 – 30 year fixed rate mortgages for qualified borrowers purchasing or refinancing manufactured homes.
VA Loan Manufactured Home Permanent Foundation
So, if considering a VA loan to purchase a manufactured home, there are foundation requirements. As far as the manufactured home foundation requirements go, they mirror FHA. Thus, it means that we require a structural engineer to complete a foundation certification. VA loan manufactured home foundation requirements include:
- Removed wheels, tongue, and axles
- 8″ thick concrete footing (2′ x 2′)
- Crawl space covered with a six-millimeter thick vapor barrier
- Mortar joints in the piers or surewall
- Brick underpinning with 8″ footing with one foundation per 150 square foot of crawl space
Be Prepared for Buying or Selling a Manufactured Home
Buying a manufactured home is different than a stick built home. Besides the foundation requirements, it is also important to verify specific data on the home. All manufactured homes come out of the factory with a HUD label and data plate tag. It may be missing or covered up by new siding on used homes. The HUD label or data plate has the HUD numbers, manufacturer, manufactured date, and serial number on it. Lenders, appraisers, and the title examiner will need this information. So, go ahead and locate the data plate tag up-front.
Sometimes the data is not available. Therefore, we will pull an IBTS report to obtain the necessary information. IBTS stands for The Institute for Building Technology and Safety. Generally, the report takes 2 – 10 business days. So, if the information is not available, let us know early. We will request this report for buyers working with OVM. Then, the report is ordered, and the information is received early in the purchase process.
Like any other home, sellers should have the home inspected for any leaks, rotten or loose boards, exposed wires, or other safety issues. If these items are cared for by the seller, the process will be much easier on the buyer.
FHA Manufactured Home Loans
So, you are not a Veteran? Don’t worry because there is another great manufactured homes mortgage option! FHA loans offer flexible credit guidelines and a low down payment option for buyers. In many cases FHA allows the down payment to be a gift from an allowed source. FHA manufactured home loans also have the same foundation requirements as VA loans.