VA Loan Mobile Home

Purchasing a VA loan mobile home can make the hope of becoming a homeowner a reality for many veterans. The main difference between traditional homes and manufactured ones is that the manufactured house is constructed in a factory and then transported to the land on which the unit will be placed. Because these homes are constructed on permanent chassis but can also be moved, they are also refereed to as mobile homes. A VA loan mobile home is purchased using financing that is guaranteed by the United States Veterans Administration. This guarantee will provide security to lenders in case the borrower defaults. There are specific characteristics set out by the Department of Veterans Affairs that define a home as manufactured. Among these characteristics are that the unit must be constructed on a permanent frame. It must have four hundred square feet of floor space and it also must be at least ten feet wide. Larger models must have seven hundred feet of floor space and be at least twenty feet wide. Under these guidelines, modular homes are not in the same category as other manufactured models, but there may be real estate funding that is available for veterans for this type of property as well.

The financing that is used to purchase a VA loan mobile home can be provided by a local lender. The lender has the added security of knowing that they are protected against loss by the VA itself. This guarantee will cover up to forty percent of the loan amount. There are generally caps established on the amount of money that a veteran can borrow to purchase a manufactured housing unit. To qualify for this kind of financing a borrower must have spent a certain amount of time in active service in the United States Military and be either currently serving or have received an honorable discharge. Every honorably discharged veteran can claim a home loan entitlement that can be used to purchase property that will serve as the borrower's primary residence. Of course, as with all mortgages, the potential borrower must be able to proof that their credit is good and that they are able to make the monthly payments on these loans while still being able to meet other life expenses. Once this criterion has been met, a veteran can move forward with the purchase of a VA loan mobile home.

Borrowers can use these guaranteed loans to do more that just purchase manufactured homes. This financing can also be used to purchase and improve an area of land that will be used as a site for the mobile housing unit. A VA loan mobile home can also be refinanced to obtain a lower interest rate. The site on which these homes are located must be approved by the Veterans Administration as well. Some things to consider when looking for land that will act as a site for a VA loan mobile home might be the availability of easy access to utilities such as water and sewage disposal. When locating to a rural area where city water and sewer systems are not available, a borrower should look into the land's potential for supplying ground water and for establishing a private well and sewage disposal system. Mobile home parks will also have varying rental rates and requirements that the homeowner should understand before locating there.

In general, VA loans are assumable should the homeowner wish to sell the property and this includes financing for the VA loan mobile home. Of course, lenders will generally have various qualification requirements for any buyer who wishes to assume these loans. As with any kind of real estate financing, a potential borrower who wishes to attempt to assume financing on a VA loan must show through their credit history, income and work history that they can be trusted to meet the monthly payments on the property. If the borrower has sufficient credit and a solid work history, the fact that the existing loan can be assumed is generally seen as a major selling point. Trust is a very important factor in any kind of real estate transaction. The Bible talks about the importance of trusting God. "Trust in the Lord with all thine heart; and lean not unto thine own understanding." (Proverbs 3:5)

Before purchasing a VA loan mobile home, a borrower should take many things into consideration. Today's manufactured housing can boast a number of amenities from whirlpool tubs to fireplaces to deluxe kitchens. No longer seen as the cramped, metal units of days past, these houses can rival any traditional construction in terms of beauty and luxury. Anyone who is looking into purchasing one of these models could find a quality living situation at a very reasonable price. When planning for the expenses that will be involved in this type of housing solution, a hopeful homeowner would be wise to consider that, unless they are planning to lease a lot in an existing manufactured housing community, they will actually be making two major real estate purchases. They will need to buy a house and the land to place the house on. Any pre purchase budgeting that takes place will need to factor in both expenditures. Another additional cost that will need to be factored in will be the expense of transporting the manufactured unit to the site that it will occupy. This expense can vary depending on the distance that the unit will need to be transported, but will generally be a costly undertaking.


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