FHA & VA Loans for Manufactured Homes and Land

FHA and VA loans are government-backed mortgages, and both can be used to buy a manufactured home together with land. They're popular because they ask for less money down and are more flexible on credit than many other loans. With Fort Bragg right here in Fayetteville, we help a lot of military families use their VA benefit.

Here's how these loans work for a land and home purchase. Vision Homes, a manufactured and modular home dealer in Fayetteville, NC, wrote this for local buyers.

How government-backed loans work

The government doesn't usually lend you the money directly. A private lender makes the loan, and the government insures or guarantees part of it. That protection lets lenders offer lower down payments and easier credit rules.

FHA loans are insured by the Federal Housing Administration.

• Down payment as low as 3.5% with a qualifying credit score
• More flexible credit rules than most conventional loans
• Mortgage insurance is required, both an upfront premium and a monthly premium

VA loans are guaranteed by the Department of Veterans Affairs.

• For eligible veterans, active-duty service members, and some National Guard and Reserve members and surviving spouses
• Usually no down payment
• No monthly mortgage insurance
• A one-time VA funding fee, which can often be rolled into the loan and is waived for some veterans, such as many with service-connected disabilities

How the costs compare

You'll also have normal closing costs, such as the appraisal, title work and recording fees. Ask your lender for a Loan Estimate to see the full picture.

Requirements for the home

To qualify for FHA or VA financing, the home generally must:

• Be built to the federal HUD Code (after June 15, 1976) and carry its HUD labels and data plate
• Be set on a permanent foundation that meets HUD's foundation guidelines, usually confirmed by an engineer's certification
• Be classified as real estate, together with the land
• Meet the program's minimum size and condition rules

New homes from Vision Homes are built to the HUD Code. We'll help make sure the setup meets the requirements for your loan.

Finding land and the appraisal

You can buy land and a home together or use land you already own. Before you choose a lot, check that it allows a manufactured home and has a plan for water, sewer or septic, power and road access.

The lender orders an appraisal of the land and home together. It looks at comparable sales nearby and must support the purchase price. If the appraisal comes in low, you may need to renegotiate, bring more cash or choose a different home or lot.

Closing on an FHA or VA land and home loan

Government loans have more paperwork than a chattel loan. Expect to provide income and asset documents, and for VA, your Certificate of Eligibility. Your lender can often request the certificate for you. Plan for a longer timeline than a home-only loan, because of the land, title and appraisal steps.

Site work and construction requirements

FHA and VA have requirements for the work done to the site, too. That can include the permanent foundation, utility connections, drainage and final inspections. Lenders may hold back part of the funds until certain work is complete and inspected. We'll walk you through the steps for your site.

Why choose an FHA or VA loan?

• Less money down: 3.5% with FHA, often nothing with VA
• Flexible credit rules
• Terms up to 30 years, for a lower monthly payment
• Equity in both the land and the home

If you've served, check your VA eligibility first. It's one of the best home loan benefits available.

Have questions about FHA or VA financing? Call Vision Homes at (910) 323-8222 or get pre-approved online.

See all of our financing options →