Change Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering.

a. How to Begin

This section only addresses manufactured homes which are, or will be, permanently affixed to a lot and considered real estate under state law.

Lenders considering making a loan involving a manufactured home that is not permanently affixed should contact the local VA office for processing instructions.

b. Allowable Loan Purposes and Calculation of Maximum Loan Amount

Permanently affixed manufactured home loans can be made for any of the allowable loan purposes listed in the table below.  Loan specifications and treatment of these loans are virtually the same as for any other VA-guaranteed home loans from a loan processing standpoint, except for calculation of the maximum loan amount. 

The following table provides the methods for calculating maximum loan amount.

Allowable Loan Purpose

Maximum Loan

The loan amount is limited to:

To purchase a manufactured home to be affixed to a lot already owned by the veteran.

The lesser of

·   the sum of the purchase price plus the cost of all other real property improvements, or

·   the total reasonable value of the unit, lot, and real property improvements, plus

·   the VA funding fee