Introduction to VA loans for manufactured homes
VA loans are government backed loans and are very beneficial for the borrowers as they help the borrower to get some good financial benefits in the long term. They provide the loans for manufactured homes. Manufactured homes can be called as mobile homes too. These kinds of homes are built in a factory and constructed by the engineers. These kinds of homes are built according to the rules of federal building code administered by the U.S. department HUD. As these kinds of homes are built by the engineers in a factory so these are very comfortable and safe from weather, environment and other dangers.
The quality of these homes is very good and engineers ensure that house meets the high quality standards. So for these kinds of homes there are so many private lenders as finance companies which provide VA loans for manufactured homes or mobile homes. The VA loans for manufactured homes are guaranteed by the VA which means that VA will give the guarantee to the lender if there will be any loss or if the borrower does not pay. 40% of the total loan amount will be guaranteed by the VA or maximum amount of $20,000.
Eligibility criteria for manufactured home loans:-
To get the VA loan for manufactured homes a borrower should have certificate of eligibility. He has to live in that home for which he is taking loan. For veterans, service member, spouse or other beneficiaries there is a different criterion. He will be eligible if at the time of war he has served 90 continuous days or at the time of peace he has served for 181 continuous days or as a national guard he has served more than 6 years. For those who died while on duty, their spouses can be eligible for this. COE can be taken easily from the nearest regional office. He has to fill in the VA form 26-1880 for making the request of COE.
What are the requirements for the approval of VA loan for manufactured homes??
There should be a right purpose to take the loan. The borrower who is taking the loan should be earning enough to take the loan and as well as the credit score should be good. The borrower should follow all the eligibility criteria and should have a valid certificate of eligibility.
Maximum loan amount for manufactured homes:-
The maximum amount which can be received as a loan will be 95% of the total purchase price including VA funding fee. The maximum time or duration of a loan of a single wide unit or combination of single wide unit and lot is 20 years and 32 days. For a double wide unit only, it is 23 years and 32 days and for double wide unit and a lot is 25 years and 32 days. When you have a place to keep your manufactured homes then the duration is 15 years and 32 days.
Manufactured homes are very good to stay as they are manufactured by the engineers perfectly and can be moved in one or more sections so VA loans for manufactured homes gives good benefits to the veteran.