When I called asking for information originally on purchasing a mobile home with VA loan, I was informed that as long as it was permanent they would cover it. I got my certificate of elegibility for the loan, and now I am being told that I cannot use it because I pay lot rent by one of the banks I tried to use it through. I was never told this by VA when I originally asked about it... is this a rule? Was I lied to by VA? Or do I need to go through specific lenders?
I am not for sure about the lot rent, but when they say permanent, they mean that it is on a permanent foundation. Basically that the bottom of the mobile home is bricked, up making it not mobile anymore.
That is what I thought, as well. I am having trouble finding somewhere that will accept the VA loan. I've found places that will take the VA loan but not for mobile homes, and others that will do mobile homes, but not VA loans.
Yeah, alot of peoople do not like to use the VA loan because it requires the sellers to pay certain non-allowables. Do you have to purchase a mobile home. I would suggest you look into buying a regular house. They are alot easier to re-sell when time comes for you too.
Yeah, alot of peoople do not like to use the VA loan because it requires the sellers to pay certain non-allowables.
This is where real estate agents need to educate their clients. It's only a few hundred bucks that the sellers have to pay and even with that the loan officer has options to account for those fees as well as both agents involved. It's all about making the deal work. IMHO.
Paul See my profile for contact information
This message has been edited. Last edited by: MortgageGuru,
That is very true. i believe most of the ones i have done have been right about $900. That is nothing when it comes to a house. I have paid for a couple of those and many other things, that arise.
Can the VA loan be used to buy the land, build the foundation and have a manufactured home moved out and placed upon the foundation? I guess what I am really asking is, does the loan pay for the transportation costs? What about having a septic tank installed...water well, power poles or solar grid system?
Yes and no. Yes, the VA loan can be used to do all of those things but it can not be used as the construction period financing. Basically, your mobile home dealer will have to finance the construction phase and your VA loan will close once the house is complete. Most mobile home dealers will have no problem with that as long as they can get a conditional underwriting approval from your lender.
Unless the MH is on permanent property with tie downs etc. it is considered "personal property" and I don't believe the VA finances "personal property". Once the foundation is set with tie downs, etc. it then becomes "real property". Now since you are paying space rent to a bank, and presumedly not a private party you might be able to buy the land from the bank and finance it all in one package. MortGU would probably know for sure.
Banks don't rent land for mobile homes to go on. You are correct on the difference between real and personal property and getting a loan for a mobile home with intentions of keeping it "mobile" aren't done by anyone anymore I don't believe.
