Happy Veterans Day 2014: The VA And Your Manufactured Home Loan

Happy Veterans Day 2014: The VA And Your Manufactured Home Loan

As we discussed yesterday, the VA (a.k.a. the Department of Veterans Affairs) currently guarantees home loans for manufactured homes. The VA’s guarantee offers protection for the lender against any financial loss should the active-duty service member or veteran default on their home loan for any reason. Obviously, to qualify for funds from the Department of Veterans Affairs, the subject home and the potential borrower must meet very specific criteria.

Happy Veterans Day 2014: The VA And Your Manufactured Home Loan

Currently the VA defines a manufactured home (MF) as one constructed on a permanent frame and which can be easily moved. The VA also requires a qualifying manufactured home have an eating area, bedrooms and a kitchen. For the single-wide manufactured home to qualify for a VA loan; ‘it must be at least 10 feet wide, with a minimum floor area of 400 square feet; double-wide units must be at least 20 feet wide, with at least 700 square feet of floor space.’

To receive a VA loan, lending guidelines necessitate that the buyer occupy or intend to inhabit the property as they’re primary home within a designated time after the closing of the loan. The buyer must have established a decent credit history and is able to show enough income to cover the scheduled loan payments and other associated costs with buying a new manufactured home.

The borrowers total debts, including their new mortgage payment, should not be more than 41% of their total income. Unlike conventional loans, which typically specify mortgage debt-to-income ratio should not exceed 28%, VA loans are not burdened with a front-end debt ratio. Thanks to today’s VA lending regulations, returning Vets can now potentially qualify for home loans with as little as zero down. Making models like the MD 17 by Kabco manufactured homes  both a stylish and fiscally responsible choice for today’s returning heroes.