I’ve recently been asked if you can do a 203k, or VA renovation loan on a manufactured home. The simple answer is yes! There are a few restrictions to keep in mind but it is possible to finance and include some repairs in with a purchase or refinance of one of these structures that requires fixes for financing.
The first thing to know is that typically most mortgage companies require the Home to be a double wide or larger. Single-wides generally are not able to be included with renovation finance. According to HUD, these structures need to be 1976 or newer also. The structural tie down or, foundation inspection, is needed to show the structure is permanently affixed to local code. The title will need to be retired to the land and permanently affixed to the property. It cannot be a moved manufactured home to a new lot.
The inspections needed are the foundation certificate, (if on a well) a pressure and potability test, and though it may not be required, a septic test is recommended (if on septic). A pest inspection, like a wood destroying organisms renovation is required on VA Renovation loans and on FHA only if the appraiser flags the appraisal for this it, would become a requirement.
FHA 203k and VA renovation loans limit repairs on manufactured homes to $35,000. including contingency reserve and other soft costs. You are not allowed to conduct structural improvements on these loan products with manufactured housing either. Many lenders have overlay for this product which are exclusions for what they allow on this product. You should check with them on special nuances with respect to credit score and qualifications but the HUD Guidelines mirror other credit guidelines and repair guides for a limited (formally “streamline 203k” guidelines).
Buying a home and including improvements can be done! It’s more difficult to do without using professionals familiar with the ins and outs of the process. Doing these loan products also in conjunction with a Manufactured home can have more intricacies but can be done. It is possible to buy and include all repairs in the purchase and get a good deal on a home! Let us know what we can do to help bring you home!