VA Loan Manufactured Home Financing
Are you thinking about purchasing a manufactured home using your VA loan benefits? If so, read this entire article before you do ANYTHING!
Trust me when I tell you I understand the benefits of buying a new manufactured home. In most cases they are made better, are more energy efficient, and definitely offer more bang for your buck…Unfortunately, that’s where the excitement ends.
In today’s market place, banks have become more and more un-easy about funding manufactured homes. This prejudice is really unfounded considering all the benefits I just mentioned.
Your problem is NOT the VA….
For the most part the VA treats a manufactured home financing just like any other property. So the issue is NOT convincing the VA your manufactured home is a good deal. Frankly the VA could really care less.
The problem IS the BANKS!
Your problem IS without a doubt… the banks! It’s clear that most banks have thrown common sense to the waste side; and based on today’s guidelines, made it nearly impossible to obtain manufactured home financing using your VA Loan benefits. I’m not joking… your chances of winning the lottery are much better..
My recommendations
- I suggest you avoid purchasing manufactured housing until the banks get their heads on straight.
- If you MUST buy, your best bet is to deal with the “in-house” finance company representing the manufactured home builder or try a local bank. And just for the record, I NEVER recommend dealing with “in-house” anything. Based on my 10 years in this business, and countless stories from other clients, “in-house” lenders rarely act in your best interest. Proceed with caution.
- Seek FHA financing (which we can do here). Why? Because more banks are willing to secure loans working under the FHA loan program as opposed to VA.
- Be prepared to put some money down. If you can’t go VA, that means you’ll be coming out of pocket using FHA or conventional financing.
- Always have an escape clause on your purchase and sale agreement. In the event you are unable to secure a loan, this will be a huge asset if you need to get out of the contact to purchase.
Please share your success stories…
If somebody out there buys a manufactured home successfully….PLEASE SHARE. I would like to post the information here for other veterans to use. After all we are all here to help one another!
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