By now, you know that it’s all about the financing. If there are 100 lenders in the community that will make a VA loan, perhaps only 10% of them will underwrite and finance a manufactured or modular home. And the rate will always be 3/8% to 1/2 % higher. The riskier deal is also going to come at a higher rate, because this type of real estate is considered less desirable. If the lender has to foreclose and re-sell the home, the universe of potential buyers who want a manufactured home will be smaller than normal. More risk = higher rates.
If you have managed to overcome the hurdles so far, you would still need to qualify for VA financing in the same manner that you would if you were buying a traditional home or even a custom renovated home through our Dreamweaver Home Purchase Process™. Remember, all loans are underwritten while considering equity, credit and income. Equity or the amount of down payment is not a consideration with VA financing. However, credit must meet minimum standards, and income must be able to support the new housing payment.