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Topic 9. Loans for Manufactured Homes Classified as Real Estate
February 22, 2019
This Chapter has been revised in its entirety.
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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 1-877-827-3702 and follow the instructions.
b. Allowable Loan Purposes and Calculation of the Maximum Loan Amount
Table 12: Table of Loan Purposes and Maximum Loan Amount Calculations
Allowable Loan Purpose Maximum Loan
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, and the VA funding fee, or
the VA NOV for the property, plus the VA funding fee.
To purchase a manufactured home and a lot to which it will be affixed.
The lesser of:
the total purchase price of the manufactured home unit and the lot, plus the cost of all other real property improvements, plus the VA funding fee, or
the purchase price of the manufactured home unit, plus the cost of all other real property improvements, plus the balance owed by the Veteran on a deferred purchase money mortgage or contract given for the purchase of the lot, plus the VA funding fee.
To obtain a regular "Cash- Out" refinance for an existing loan on a manufactured home and purchase the lot to which the home will be affixed.
The lesser of:
the sum of the balance of the loan being refinanced, plus the purchase price of the lot, not to exceed its reasonable value, plus the costs of the necessary site preparation as determined by VA, plus a reasonable discount on that portion of the loan used to refinance the existing loan on the manufactured home, plus authorized closing costs plus the VA funding fee, or
the total reasonable value of the unit, lot, and real property improvements, plus VA. funding fee.
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An IRRRL to refinance an existing VA loan on a permanently affixed manufactured home and lot
The sum of:
the balance of the VA loan being refinanced, plus
allowable closing costs, plus
up to two discount points, plus
the VA funding fee.
Note: The provisions applicable to IRRRLs apply (See Chapter 6 of this handbook).