Out of the gate, it’s incredibly important to make this distinction: Modular homes and manufactured homes are not the same thing, at least as far as the VA home loan program is concerned.
Regardless of the home you choose, now is the time to get started on your VA home loan application. Its many advantages make home buying easier and less expensive for veterans.
Modular Home and VA Loan
Modular home construction is a different ballgame. The finished pieces remain inside of the factory and aren’t exposed to outside conditions until it comes time for transport. Depending on the look, it’s sometimes tough to tell a modular home from a traditional single-family residence. And unlike manufactured homes that must only meet a standard U.S. Housing and Urban Development (HUD) housing code, modular home loan also need to satisfy local regulations.
The process for purchasing an existing modular home is simply the standard procedure: Prequalification, Preapproval, Contract, Underwriting, Closing and House Party.
Where things can get more complicated is if you’re wanting to buy a new modular home and have it installed on a piece of land. Lenders will often consider this new construction, and that changes the complexion when you’re talking about VA home loans. It’s tough to find VA lenders out there willing to do a true $0 down construction loan.
Often, borrowers need to obtain a construction loan from a builder or a local lender, then look to refinance that short-term loan into a permanent VA mortgage once the home is ready. This is a common pathway for both stick-built and modular-new constructions.
In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.