While many lenders shy away from financing manufactured homes, Cascade is proud to be one of the few lenders in the United States that offers VA modular and manufactured home loans with construction financing included in the loan. These loans are meant to honor American military members by making it easier to secure an affordable loan for modular and manufactured homes.
A manufactured home needs to be attached to a permanent foundation to qualify for a VA loan. This applies whether you're purchasing a brand-new manufactured home or an existing one. Having the manufactured home affixed to a permanent foundation allows the house to be classified as real property which is necessary for the manufactured house to be eligible for a 30-year VA loan.
There are additional aspects a manufactured home must meet to qualify for a VA loan. These have been set forth by the Veteran's Administration to assure that veterans and their families will be living in a safe, secure, sanitary, and structurally sound home.
Criteria specific to VA loans for manufactured home includes:
In short, appraisers will be looking for any significant issues in the home that could potentially cause problems for you at the outset of your purchase or in the near future. An appraiser can't foresee every possibility, but they want to make sure you're purchasing a home that's sanitary, structurally sound, and safe from the start. Make sure to read our blog about the advantages of manufactured homes to learn more.
This laundry list of requirements may seem excessive to you, but the standards are in place for VA loan qualifying manufactured homes to protect you from unforeseen, potentially costly hassles later.
*For example, a $200,000 loan with a 30-year term with no down payment, a rate of 3.25% (3.557% APR) is repayable in 360 monthly payments of $870.41. This example assumes a Funding Fee of 2.30%. It does not include the cost of property insurance or property taxes, which will increase the monthly payment.
**A $200,000 FHA loan with a 30-year term, a 3.5% down payment, a rate of 3.25% (3.967% APR) is repayable in 360 monthly payments of $1,012.08, which includes $167.41 in FHA Mortgage Insurance. This FHA monthly payment does not include the cost of property insurance or property taxes, which will increase the monthly payment.
Several other requirements must be met for a VA loan, including:
Before applying for a VA loan, it's a good idea to request your Certificate of Eligibility (COE) from the Department of Veterans Affairs if you don't already have a copy of it handy. Your COE verifies that your military service requirements for a VA loan have been met. However, you don't need to have it to start your application. Just make sure you get a copy of it during the loan application process. You'll need to have it before closing as any question about your veteran status can delay or even capsize your entire loan.
Cascade is proud to support the U.S. military with VA modular and manufactured home loans that are otherwise difficult to obtain. Contact us at 877-869-7082 to learn more about our VA modular and manufactured home loan programs, or get started right away by filling out our online prequalification.