Properties That Can't Be Purchased with a VA Loan

Will VA loans cover manufactured homes? The answer is yes, the VA does provide loans for manufactured homes. These loans can be used to purchase both newly built and existing manufactured homes.

VA loans are a popular option among military personnel and veterans who are looking to purchase a home. This type of loan offers several benefits that make it attractive, such as no down payment, no private mortgage insurance, and flexible credit requirements. Additionally, these loans are backed by the U.S. government, which means that lenders are less likely to charge higher interest rates.

In order to qualify for a VA loan for a manufactured home, borrowers must meet certain eligibility requirements. This includes having satisfactory credit, sufficient income to cover the loan payments, and a valid Certificate of Eligibility (COE) from the VA.

The VA does not limit the size or location of the manufactured home that can be purchased with a VA loan. However, there are some restrictions when it comes to the age and condition of the home. The home must be built after June 15, 1976 and must meet certain standards for energy efficiency. The home must also be in good condition and must be installed on a permanent foundation.

When it comes to the financing of a manufactured home, VA loans offer a number of advantages over other loan types. These loans are often easier to qualify for and come with more favorable terms. Additionally, VA loans do not require a down payment and provide for more flexible credit requirements.

Key Points:
• The VA does provide loans for manufactured homes
• VA loans offer several benefits, such as no down payment and no private mortgage insurance
• Borrowers must meet certain eligibility requirements such as having satisfactory credit, sufficient income, and a valid COE
• The home must meet certain standards for age, condition, and energy efficiency
• VA loans offer more favorable terms than other loan types and come with more flexible credit requirements

People Also Ask:
Q: What is the eligibility criteria for a VA loan on a manufactured home?
A: Borrowers must meet certain eligibility requirements such as having satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) from the VA.

Q: Are there restrictions on the size and location of the manufactured home?
A: The VA does not limit the size or location of the manufactured home that can be purchased with a VA loan.

Q: What are the advantages of getting a VA loan for a manufactured home?
A: VA loans offer a number of advantages over other loan types, such as no down payment and more flexible credit requirements. Additionally, VA loans are often easier to qualify for and come with more favorable terms.

Will Va Loan On Manufactured Homes – Most Popular?

Though the VA loan is designed to help veterans purchase homes. There are some restrictions on what types of properties you can purchase with a VA loan. In addition to some restrictions on what situations you can use the VA program. So stay tuned and I’ll explain all the ways in which you’ll be prohibited from using the VA program.

1. Investment Property – The purpose of the VA program is to help veterans purchase homes to live in. Therefore, only loan applications for primary residences will be accepted. VA also excludes second homes/vacation homes from eligible property uses. There are some caveats in place to help veterans buy who cannot move into the property right away. For more information on that be sure to watch my video “Do I have to move into the property immediately”.

2. Business Loans – You are not permitted to use the VA loan to purchase a storefront, office space, or some other non-residential property. VA loans are made strictly for veterans to purchase residential property.

3. Unimproved Land – VA loans require you to live in the property. So naturally in the case of land void of a residential unit, there’s not a property for you to live in. However, the VA does have a construction loan product that can be used to cover the cost of land that a home will be built on.

4. Foreign Property – Veterans will only be permitted to purchase property in the United States and American territories with the a VA loan.

5. Housing Cooperative (Co-Op) – A co-op is a housing unit owned by a group of shareholders. Since the shareholders collectively own the building, they all have occupancy rights to it. However, none of the shareholders technically own a specific residence within the unit. They merely own equal shares of the building.

6. Lender Specific – The VA allows lenders to determine what types of properties they will exclude from financing in addition to the property types designated ineligible by the VA. So you may find that if you’re trying to purchase something like a mobile home, barndominium, or an income producing property like a farm, that the lender you’re working with may not be able to help you. This is another reason why it’s important to work with lenders who don’t have overlays (unique lender-specific rules) on VA loans. The VA’s restrictions are more than enough. You want to be able to use your benefit in the way that you see fit. Afterall…you earned it.

Now that you understand what types of properties you can’t buy with a VA loan. You may be asking what are the property requirements for a VA loan. For that be sure to watch my video “what are the VA minimum property requirements” where I’ll be covering the items you need to look for when selecting a home to purchase with a VA loan.

Ed Andrews, III NMLS ID 156853
Loan Originator
Branch address: 5055 W Park Blvd Ste 300 Plano TX 75093
Phone: 682-429-3443
Cardinal Financial Company, Limited Partnership NMLS 66247
EQUAL HOUSING OPPORTUNITY
For licensing information, go to: www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/66247
Company Licenses: www.cardinalfinancial.com/nmls-licensing

This material has been prepared for marketing purposes only. This is not a loan commitment or guarantee of any kind. Loan approval and rate are dependent upon borrower credit, collateral, financial history, and program availability at time of origination. Rates and terms are subject to change without notice. Corporate Address: 3701 Arco Corporate Drive, Suite 200, Charlotte, North Carolina 28273. Cardinal Financial Company, Limited Partnership, NMLS ID 66247. For a full list and more licensing information, please visit: https://cardinalfinancial.com/nmls-licensing/.

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