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VA Loans on Manufactured Homes in Texas
My daughter and her husband live in Texas. Do your company offer loans on manufactured or modular homes using a VA Loan?
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1 Reply
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Yes, your daughter and her husband may use a VA loan to buy a manufactured or modular home in Texas as long as certain conditions are met. Certain necessities and processes are involved in the whole housing loan transaction.
VA Loan for Manufactured Homes
Eligibility:
- Veterans, service members, and eligible surviving spouses can use VA loans to purchase and find a manufactured home built after June 15, 1976.
- Real estate built before this date is considered caravans and thus not eligible to be financed through the VA.
Property Requirements:
Various requirements ensure the home is affiliated with the geography:
- The manufactured movable homes must be fixed to a permanent foundation, together with the land and as real property, and not in at least 700 sq. ft. of interior residence floor area, according to prevailing zoning services and VA’s Minimum Property Requirements.
- In addition, the manufactured home must be approved for a metal identification wire entitled HUD, called the HUD tag.
- The HUD tag must be posted with supporting data plates giving specifications for the house.
Lender Considerations:
- It is important to note that not all lenders extend VA loans on manufactured homes.
- So, inquiries should be made about what potential lenders offer on this specific issue.
- Also, some lenders could only finance such homes if they had special approval from the VA to move them from their original site.
VA Loan for Prefabricated Houses
Eligibility:
- Regarding VA loans, purchasing modular accommodation works the same way as acquiring conventional homes.
- As state or local building codes specify, panelized homes are factory-built and assembled on-site.
Property Requirements:
The modular unit must:
- Be installed on a permanent site.
- Comply with the applicable building regulations.
Could you remain on the site where it was placed?
Financing Options:
- If your daughter and her husband wish to construct a contemporary modular dwelling, they will likely first apply for a construction loan and then change the loan to a permanent VA loan after the home has been built.
Benefits of Using a VA Loan
No Down Payment: A VA loan usually allows the borrower to buy the property without a down payment.
Low and Reasonable Interest Rates: Interest rates for VA loans are far below those of other types of non-conventional loans.
No Private Mortgage Insurance (PMI) can save a borrower substantial money throughout the loan period.
Obtain a Certificate of Eligibility (COE): A COE is a document that confirms a person’s status, allowing them to fund a VA loan, which can be requested directly from the Department of Veterans Affairs or the person’s financial provider.
Choose a Lender: Browse through a list of lenders that provide VA loans for manufactured or modular homes and select one of your choices.
Prepare Documentation: Collect the relevant documents regarding finances, income, credit reports, and anything else the lender considers relevant.
Adhering to these guidelines, your daughter and her spouse can effectively undertake this process to obtain a VA loan for a manufactured or modular home in Texas.