Property purchased or refinanced through VA loan programs must meet minimum property requirements (MPR) as determined by licensed appraisers.
Loan amounts for manufactured homes may not exceed 95 percent of the purchase price of property securing a VA loan. This means that if a manufactured home and lot are purchased together for $150,000, the maximum allowed loan amount is $142,500.
According to the Catalog of Federal Domestic Assistance (CFDA), repayment terms for manufactured homes vary according to the type of manufactured home and/or land being purchased:
- Maximum loan term for single-wide manufactured home or a single-wide manufactured home and lot is 20 years and 32 days.
- Maximum loan term for a double-wide manufactured home is 23 years and 32 days.
- Maximum loan term for a double-wide manufactured home and lot is 25 years and 32 days.
- Maximum term for a loan to purchase a lot on which a manufactured home already owned by the borrower is 15 years and 32 days.
The one-time VA loan funding fee for loans on manufactured homes is one percent in 2014; that’s $1,425 for the $142,500 mortgage in the example above. This fee can be paid at closing or financed (wrapped into the mortgage). The fee is a one-time charge and there is no monthly mortgage insurance premium. The funding fee functions as an insurance premium; when a borrower defaults on a VA-backed home loan, the lender is reimbursed by the VA.