How does a VA loan on a mobile home work?

There are a lot of Veterans out there who are eligble for a VA guaranteed loan. Some of these people want to live in a mobile home, but getting a VA loan can prove difficult on a mobile home.

Technically it can be done, but actually doing it is another thing.

You see, the VA does not make the loan, they only guarantee a loan made by a lender for a vet. So, you need to find a lender who not only makes mobile home loans, but also makes VA loans too. This is harder than you would imagine.

Here is a good source of info:

"The money for a VA guaranteed manufactured home loan does not actually come from the VA. These loans are given to borrowers by private lenders, such as banks or other mortgage companies. The VA simply protects the lender from loss, in the event the borrower fails to repay the loan. In other words, if you stop making your mortgage payments and have to foreclose, your lender will get most of their money back.

The VA doesn't guarantee the entire amount of the manufactured home loan. The VA guarantees up to 40% of the loan amount or the veteran's available entitlement, up to $20,000"

To read the whole article, visit:
http://www.mobileandmodularhomes.com/search?updated-min=2012-01-01T00:00:00-08:00&updated-max=2013-01-01T00:00:00-08:00&max-results=13

Now here is the thing: most VA loans being done on mobile homes are grouped together in areas of the country. So, there are pockets where this is common, and areas where it is not. Unfortunately, you will just have to shop around and see who in your area can help.

Any thoughts, comments, or ideas? Feel free to comment here.