VA Loans for Modular Homes

Modular homes have been gaining popularity among homeowners for their flexibility, cost-effectiveness, and energy efficiency. If you’re a veteran considering such an investment, there’s good news! The VA loan, known for its zero down payment and favorable interest rates, can be used to finance modular homes. And with Six Pillar Lending by your side, the process becomes even smoother!

VA Loans and Modular Homes: A Perfect Match

The VA loan program, designed to help veterans, active-duty personnel, and certain members of the National Guard and Reserves purchase their dream homes, has expanded its horizons to include modular homes. This means you can enjoy the same benefits as zero down payments, no private mortgage insurance (PMI), and competitive interest rates, even when opting for a modular home.

Understanding Modular Homes

Unlike traditional stick-built homes, modular homes are prefabricated in sections at a factory and then transported to the site for assembly. They adhere to specific codes, undergo rigorous quality checks, and are nearly indistinguishable from their traditionally built counterparts once assembled.

VA Modular Home Guidelines

• May be built in pieces/sections and then constructed on site.
• Must be affixed to a permanent foundation.
• Must meet local building code standards.
• Local building inspectors must sign off on structures meeting local requirements.
• Cannot be moved after it has been placed on the property.

The Advantage of Six Pillar Lending

With the potential complexities of financing a modular home, you’d want a trusted partner by your side. Here’s where Six Pillar Lending shines:

• Single Transaction Ease: Six Pillar Lending simplifies the process by consolidating the modular home and land purchase into a single transaction—no need to juggle between different loans or lenders.
• Expertise: Having supported countless veterans, they are adept at navigating the intricacies of VA loans, ensuring you meet all qualifications and get the best terms.
• Swift Approvals: With their streamlined process, getting approval is quicker, ensuring you can move into your modular home without unnecessary delays.

Preparing for Your VA Loan

Before diving in, here are some steps to ensure smooth sailing:

Certificate of Eligibility (COE): This document confirms your eligibility for a VA loan. Six Pillar Lending can help you obtain one if you haven’t already.

Property Requirements: The VA has specific requirements for properties to ensure they are safe and habitable. Modular homes must also meet VA and local standards. Six Pillar Lending can guide you through this, ensuring your chosen modular home is compliant.

Credit Report: We’ll pull this, but it’s essential to know that VA loans don’t have a set credit score requirement. Don’t believe it if a lender says you must have a minimum credit score for a VA loan. The lenders themselves have a minimum credit score!

Income Documents

• • Recent Pay Stubs: Generally, the last month’s worth to verify current employment and income.
  • W-2s or 1099s: Typically, lenders ask for the past two years to verify consistent income.
  • Tax Returns: This might be requested to further verify income, especially for self-employed borrowers.
  • Additional Income Proof: This can include documentation for rental incomes, dividends, disability payments, or other income sources.

Employment Verification: Lenders may require verification of employment. This might be in the form of recent pay stubs, employment verification letters, or recent tax returns for those who are self-employed.

Personal Information: This includes valid photo identification, Social Security number, and possibly details of your marital status.

Loan Application: You’ll fill out a loan application detailing your personal, financial, and employment information.

Property Information: If you’ve already chosen a property, you’d need to provide details about it. This might include a purchase agreement, property tax assessments, and recent utility bills.

VA Appraisal: Once you’ve selected a property and your offer has been accepted, the lender will order a VA appraisal. This is mandatory for a VA loan to ensure the property meets the VA’s Minimum Property Requirements (MPR).

Other Documents: Depending on the lender, the state you reside in, and your personal circumstances, additional documents might be required. For instance, if you’re using rental income to qualify, you might need to provide lease agreements.

VA Loans for Modular Homes

Modular homes present a fantastic opportunity for those seeking flexible and cost-effective housing solutions. And with the VA loan program’s support, veterans have a golden chance to make this dream a reality. With Six Pillar Lending as your trusted partner, you can be assured of a seamless experience, from selecting your modular home to moving in.

Here’s to making dreams come true, one modular home at a time! Contact us today to get started!