VA Loan Criteria for Modular Home
A criteria or guideline is always given whenever the construction of a modular home is financed by a lender or bank. The following criteria pertains to the criteria when applying for a VA loan for modular home construction.
Modular Home must be Classified as Real Property
It’s possible for modular homes to be classified as a vehicle, or personal property, instead of real property. When the home is transported to the site, it needs a vehicle’s license to travel upon public roads, much like a travel trailer would.
Modular Home must be Affixed to a Permanent Foundation
According to the VA lender’s handbook, the modular home can’t simply be left on the wheels it was transported on. It must be placed on a permanent foundation.
A foundation not only supports the weight of the modular home, but also helps the structure withstand strong wind. Without a good foundation, the home could topple. In some areas of the country, VA even requires hurricane ties to be installed on the home per local code.
Conforming to Minimum Property Requirements
According to the VA handbook, the modular home must be at least 10 feet wide and 400 square feet if a single wide, or 20 feet wide and 700 square feet if a double wide to be eligible for financing. There is no age restriction for the manufactured home.
Beyond manufactured home-specific requirements, VA sets forth general Minimum Property Requirements for any home that is financed with a VA loan. The overall goal of MPRs is to ensure that the veteran is buying a home that is livable and free from major defects.
Conforming to Local Building Codes
Counties, cities, and states have building codes that all structures must adhere to. For example, a county may require a certain amount of insulation in the home, or various standards for electrical wiring. The manufactured home will have to adhere to these standards as well.
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.
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