VA Home Loans - VA Manufactured or Modular Homes

This section only addresses manufactured homes which are, or will be, permanently affixed to a lot and considered real estate under state law for VA loan purposes.

Permanently affixed manufactured VA home loans can be made for any of the allowable loan purposes listed in the table below. Loan specifications and treatment of these loans are virtually the same as for any other VA guaranteed home loans from a loan processing standpoint, except for calculation of the maximum loan amount.

The following table provides the methods for calculating maximum VA loan amount.

Allowable Loan Purpose	Maximum Loan The loan amount is limited to:
To purchase a manufactured home to be affixed to a lot already owned by the veteran.	The lesser of • the sum of the purchase price plus the cost of all other real property improvements, or • the total reasonable value of the unit, lot, and real property improvements, plus • the VA funding fee
To purchase a manufactured home and a lot to which it will be affixed	The lesser of • the total purchase price of the manufactured home unit and the lot plus the cost of all other real property improvements, or • the purchase price of the manufactured home unit plus the cost of all other real property improvements plus the balance owed by the veteran on a deferred purchase money mortgage or contract given for the purchase of the lot, or • the total reasonable value of the unit, lot, and property improvements, plus • the VA funding fee.
To refinance an existing loan on a manufactured home and purchase the lot to which the home will be affixed	The lesser of • the sum of the balance of the loan being refinanced plus the purchase price of the lot, not to exceed its reasonable value plus the costs of the necessary site preparation as determined by VA plus a reasonable discount on that portion of the loan used to refinance the existing loan on the manufactured home plus authorized closing costs, or • the total reasonable value of the unit, lot, and real property improvements, plus • the VA funding fee.
An IRRRL to refinance an existing VA loan on a permanently affixed manufactured home and lot	The sum of • the balance of the VA loan being refinanced, plus • allowable closing costs, plus • up to 2 discount points, plus • the VA funding fee.

Manufactured homes have specific appraisal issues associated with them that need to be met. Please see the appraisal section or contact your lender for information.

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