When looking at housing options in the Sacramento area, you may want to consider a manufactured or modular home. Not only can these homes be an affordable solution to housing, but they can also be financed using many of the same types of loans as traditional homes, including Veteran's Administration loans. The VA provides these mortgage loans as a benefit to veterans and their families. Is a VA manufactured home loan right for you?
What Is a VA Loan?
The Veteran's Administration guarantees a VA loan funded by a private lender authorized to offer VA loans. These loans are designed to honor members of the American military and their families through affordable housing options that are often easier to secure. VA loans have special regulations and rules, including:
- The home must be the veteran's primary residence.
- The private lender will determine the rate. Cascade Financial Services offers rates comparable to an FHA loan.
- VA loans do not have a monthly mortgage insurance requirement.
- A 5% down payment is required.
- A required VA funding fee is added to help set off program expenses. The funding fee is not paid out of pocket and may be waived entirely for a disabled veteran.
- Must have at least a 620 credit score, although Cascade may be able to work with you, even below that threshold.
- Must have had no foreclosure or bankruptcy in the past two years to qualify.
- The VA will select the home appraiser.
Who Is Eligible for a VA Loan?
You may qualify for a VA loan if you've served 90 days during a time of war, 181 continuous days during peacetime, or six years in the National Guard. If your spouse died during service, you might also be eligible for a VA loan. Applicants must have a Certificate of Eligibility from the VA to qualify for a VA loan through an authorized lender of their choice. The VA website provides more information on the certificate along with assistance for applying.
What Are the Limits for VA Loans on Manufactured Homes?
As with all loans, there are limits on the amount of financing you can get as well as the length of the loan. A VA loan on a manufactured home can finance up to 95% of the house. You only need to have a 5% down payment with a VA loan and there is no monthly mortgage insurance payment, which makes it more affordable than most other options.
Where Can I Get a VA Loan for a Manufactured Home?
Private lenders that are authorized to offer VA loans include mortgage companies and banks. Not all of these authorized private lenders will offer VA loans for manufactured homes, though. You will need to ask your lender specifically about a VA loan for a manufactured home to determine whether or not you can finance your home through them. Cascade Financial Services offer VA loans for manufactured homes, along with other financing options. If you're looking for financing on a manufactured home, reach out to the knowledgeable team at Cascade to see if you qualify.
What Is a Manufactured Home?
Often when people use the term manufactured homes, they're referring to prefabricated homes. There are two types of prefabricated homes that qualify for VA loans, as long as they were built after June 15, 1976. On that date, the Department of Housing and Urban Development created new guidelines for prefabricated houses with stricter guidelines.
A manufactured home is built off-site, usually in a factory-type setting, and then later transported to where it will be placed. These homes can be moved in one or more sections. You can choose from a single-wide, double-wide, or multi-wide homes. A single-wide manufactured home is 18 feet wide and no longer than 90 feet long when in transportation mode. A double-wide will be a minimum of 20 feet wide and a maximum of 90 feet in length. A manufactured home is typically placed directly on the land, making its location temporary, although it can be placed on a permanent foundation as well.
A modular home is similar to a manufactured home in that it's mostly built off-site and later brought to the land it will be placed on in sections. However, a modular home is placed on a permanent foundation, making its location permanent.
Each option requires that the final assembly be completed after the home is placed, including plumbing and electrical. The final assembly can be completed by individual laborers, construction companies, or building contractors. Today's prefabricated homes are almost impossible to discern from traditional construction with stylish exteriors and modern appliances and fixtures.
How Do I Get a VA Loan to Finance a Manufactured Home?
A VA loan follows many of the same steps as a traditional loan, including the approval process, prequalification, preapproval, contract, underwriting, and closing. To prepare for the process, you will need the following:
- Income. You'll need to be able to prove your monthly income using pay stubs and tax returns. You may also want to review your income to ensure that you have room in your monthly budget for a mortgage payment, utilities, insurance, and other expenses related to owning a home.
- Credit. Look at your credit history and credit report to make sure it's accurate. Lenders will be looking at payment history, accounts, balances, and public records such as foreclosure or bankruptcy.
- Loan. Once you've settled on a VA loan, be sure to review the terms, such as funding fees, loan limits, loan origination fees, interest rates, closing costs, and credit score requirements.
- Lender. You'll want to find a lender you're comfortable with and who works to get you the financing that fits your needs. You may want to look at lenders specializing in manufactured home loans, such as Cascade Financial Services.
When you're ready to finance your manufactured home with a VA loan, reach out to the experienced team at Cascade Financial Services. You can reach us at 877-869-7082 for questions about your financing options, or you can complete the prequalification form online at your convenience.