A modular home is built to provide security and protection to its home owners. Because of the recent economic issues, it is now the alternate way to own a home. Modular homes are intended for those who have no capacity to pay in cash. And today there are a number of lenders who are specializing in prefabricated homes.
In every modular home financing, there are certain requirements that a home buyer must prepare. These requirements are the fuel to have a successful home loan such as the VA loan. They will be useful in achieving the construction and completion of your dream home. So here are the requirements to have your VA loan for modular home approved.
Requirements To Get the VA Loan Approved for Modular Home
Military Service Requirements
A veteran is considered eligible for a VA loan if he has at least 90 days of active duties and is discharged honorably during war time; and during peace time a veteran must have at least 181 days of continuous duty and also discharged honorably. Veterans who have obtained disability may not require to render 90 days of duty. And for those who are still in the field, they can apply for the VA loan provided that they have served at least 90 days during the war and 181 days in normal days.
Modular Home Property Eligibility
The VA loan handbook states that in order for the loan to be approved the property must be among the list of eligible properties. Together with single- family homes, VA- approved condos, and other housing properties, modular homes are one of the listed eligible properties. To have a proof, the home buyer needs to go the Certificate of Eligibility for a VA loan which establishes the military’s approval for eligibility, not for the loan itself. VA Form 26-1880 or the Request for Determination of Eligibility and Available Loan Guaranty Entitlement, then it goes to lenders when you request the loan.
VA Loan Lenders
In a VA loan, the home buyer must look for a VA approved lender, who usually grants traditional mortgages because they perceive modular homes as conventional homes. The lender must be VA approved because when the home buyer can’t pay for the loan anymore. The VA will cover as much as 80 percent of the principal loan. There are numerous institutions o companies today that are VA approved. Just ask the Veterans Affairs.
Income and Credit Qualifications
Income and credit information of the modular home buyer is also evaluated during the application of a VA loan. The buyer must meet the credit score lay down by the lender. And in some cases, VA intervenes to lower the credit qualifications and suggests that the credit-to-income ratio must not be higher than 41 percent. If a home buyer has been known how to have a bankruptcy, he must wait for two years before he can apply for the VA loan. Sustainable income and low credit score will be asked once you apply for the loan after two years.
VA- based modular homes are subject to appraisal. Veterans Affairs and the lender will have to check and evaluate the quality of the dwelling that is built. Moreover, are reminded that a VA loan is not qualified to have mortgage insurance
If you find this post helpful for your future home, you can now sign- up to our free prefabricated home kit, where information pertaining to everything modular is given at your expense.
Topic: Modular Home
How To Have A Successful VA Loan Approval for a Modular Home
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