NewsDoes Navy Federal Do Manufactured Home Loans

Does Navy Federal Do Manufactured Home Loans


What Is A Va Construction Loan


A VA construction loan is a short-term loan allowing Veterans to purchase land and build a custom home as their primary residence.

In some cases, the construction loan and permanent financing are handled with a single loan at closing before construction commences. This is called a one-time close or single close VA construction loan.

Other times, there are separate closings for both the VA construction financing and for the permanent mortgage.

Keep in mind, it may be difficult to find a true VA construction loan. Contact an experienced home loan specialist to explore loan options when building a home with a VA loan.

What’s A Loan Estimate

A Loan Estimate is an industry-standard form we’ll give you after you apply for a mortgage. It provides you with important information about your loan, including the interest rate, monthly payment and expected closing costs. Since these line items are estimates, certain costs may change between the original Loan Estimate and your closing date.

Need Manufactured Home Financing Joining A Credit Union Is Simple

There are credit union affiliations with many groups, companies, and associations, including many employers, places of worship, alumni associations, communities, labor unions, the military, and many more. offers more information and criteria to join a credit union near you.

If all this talk of buying a new home has you feeling inspired, feel free to tour of some of todays modern manufactured homes at our YouTube channel by clicking the image below

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Is Navy Federal Credit Union Trustworthy

The Better Business Bureau gives Navy Federal Credit Union an NR, or “No Rating,” because it is responding to customer complaints that had already been resolved.

Navy Federal also received a high score on the J.D. Power 2021 Primary Mortgage Origination Satisfaction Survey. The credit union actually doesn’t qualify to rank because it doesn’t meet certain criteria, but J.D. Power notes that the Navy Federal would rank highly if eligible.

Navy Federal does have one recent public scandal, though. An employee has claimed the lender pressured mortgage underwriters to approve loans even if they didn’t have sufficient reason to believe applicants could repay the loans. Then she filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.

What Mortgage Programs Are Available

Does Navy Federal Give Loans For Manufactured Homes

Besides conventional mortgages, Navy Federal mortgage offers the following mortgage types:

  • Jumbo loans: Any mortgage with a loan amount above the conforming loan limits set by the Federal Housing Finance Agency .
  • VA loans: A zero down payment mortgage or a refinance of up to 120% of the home’s value for American military members, veterans, and their spouses. VA loans offer competitive mortgage rates, and don’t have a minimum credit score. However, the mortgage lenders that offer them will typically require a credit score of at least 640.

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Using A Va Streamline Loan

Some lenders will allow you to use a VA streamline loan on mobile home financing, which can help to lower interest rates with few to no out-of-pocket expenses on your end. The home would need to have a VA loan on it currently, the specifics of which your preferred lender must find acceptable. Check with your lender whether they allow this type of loan, and see our VA streamline refinance page to learn about general qualifications.

Navy Federal Mortgage Review For 2022

Navy Federal Credit Union isnt only committed to helping its members find the right mortgage the lender also strives to help borrowers save money.

Down payments and closing costs are two of the biggest obstacles to homeownership, but Navy Federal can lessen these financial burdens.

Zero-down home loans

Its notable that Navy Federal offers other zero-down mortgage options in addition to the federally-backed VA loan.

The Homebuyers Choice Loan is a zero-down mortgage for military borrowers who have already exhausted their VA home buying benefit.

Rates run about 1% higher than the standard VA loan, and the credit union charges one-half percent in discount points. Still, this is a great deal for veterans who do not have VA loan entitlement remaining.

Keep in mind that this loan does not require private mortgage insurance . This lowers the mortgage payment considerably compared to an FHA or conventional loan.

There are even refinance and jumbo loan options available. Few other lenders go this far to ensure the availability of home financing for veterans.

Navy Federal rate match guarantee

Navy Federal Credit Union also has a rate-match guarantee that can be helpful to borrowers who shop around.

If another lender offers a lower rate on your mortgage, Navy Federal will match this rate or give you $1,000.

No minimum credit score

Whats noteworthy, too, is that Navy Federal doesnt set a minimum credit score for mortgage approval.

According to a credit union representative:

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Latest News On Mortgage Lenders

The era of super low rates has ended. Mortgage rates have increased by about 2 percentage points since the start of 2022, according to Freddie Mac. Keep track of current mortgage rates as you get ready to put in a mortgage application, this will help you spot the most competitive rates.

As the interest rate on 30-year fixed-rate mortgages increases, more borrowers are turning to adjustable-rate mortgages to help increase affordability. While the lower initial rate on an ARM can make it an attractive option, you can end up spending more in the long run if youre not careful. Learn about the pros and cons of ARMs and decide if its the right option for you.

There may be some good news on the horizon for buyers tired of trying to find a home in todays still hot market. Slowing demand is finally adding more housing inventory to a market that has suffered from a severe lack of supply over the past two years. However, the most recent data still shows home prices rising.

Drawbacks To Using Navy Federal Credit Union

$185,000 NAVY FEDERAL FUNDING PLAY! | Navy Federal Credit Union

Navy Federal Credit Union wont be perfect for everyone. But there are two main downsides to going with this credit union as your mortgage provider.

  • Lengthy approval process. While customer reviews are mainly positive, customers have repeatedly complained about the credit unions approval process taking longer than expected.
  • Fined $28.5 million by the Consumer Financial Services Bureau. In 2016, the CFPB ordered Navy Federal Credit Union to pay $28.5 million for making false threats about debt collection to its members and unfairly restricting account access when members had a delinquent loan between 2013 and 2015.

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Potential Va Mobile Home Lenders

Veterans United VU says that it does lend on manufactured homes in certain cases. And you might want to start by talking to one of its loan officers. Because, if you qualify, youll be dealing with an excellent lender with a great reputation for customer service. Indeed, it lent more VA loans in 2018 than any other lender.

Land Home Financial Services This lender offers loans up to 100% LTV to buy a manufactured home and 90% to refinance for applicants with credit scores down to 620. The lender appears to be licensed in most U.S. states. However, it is a wholesale lender, meaning you have to find a bank or mortgage company that is signed up with Land Home as a broker. Its possible that Land Home has a list of lenders in your area.

AFR Wholesale Another wholesale lender, AFR states that it offers VA manufactured home loans. Since its a wholesale lender, you must do your own search for a local mortgage broker or lender who is signed up with AFR. The company does not share its manufactured home guidelines publicly, so ask your local lender if they partner with AFR and the terms of the loan.

CMG Financial CMG Financial is licensed in most states and is a retail and wholesale lender. Its guidelines state that it can lend on manufactured homes aged 20 years or less, on a permanent foundation, no structural additions, enclosed crawl space, and meeting all other local codes as well as VA property requirements.

Hunt around a bit and youll likely find others.

Other Things To Consider

Your manufactured home may be way less expensive than a stick-built equivalent, but its still likely to be the single biggest purchase youve made so far in your life. So you need to think through your purchasing decision properly. In particular, bear in mind two points.

First, manufactured homes dont typically appreciate in value, though there are rare exceptions. They dont usually depreciate as quickly as a car but the process is similar. One of the reasons for that is they have a shorter life expectancy than a stick-built home. Of course, you may be able to slow depreciation by maintaining your home better than most owners do.

And that brings us to the second point. Investing in maintenance is just one of a number of homeownership expenses you can expect. Youll likely face property taxes, homeowners insurance premiums and perhaps park fees, too. Your lender will look at all those when it decides whether you can afford the loan you want. So get your head around them before finding a lender to apply for VA mobile home financing.

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Why Get A Mobile Home Loan

So, why would you want to pursue mobile home financing in the first place? Chances are, affordability will be a big factor. In 2018, the Manufactured Housing Institute reckoned the total cost of a mobile home was less than half that of more traditional housing options: an average price per square foot of $49 for a manufactured home, compared with $107 for a site-built one. Now add those numbers to the fact that modern mobile homes are increasingly being built to showcase comfort, advanced energy efficiency, and spaciousness, and theres a simple yet strong case to be made for considering a mobile home loan. Small wonder the MHI says roughly one in 10 new homes in America are manufactured ones.

Of course, if youre eligible for VA mobile home loans , you stand to get an even better deal than the average mortgage borrower. So dont be bamboozled by salespeople into taking the parks own chattel financing. Theyre going to be thinking of their fat financing commissions rather than your best interests.

Va Mobile Home Guidelines:

Does Navy Federal Give Loans For Manufactured Homes

The VA updated its rules for how it categorizes manufactured/mobile homes in March 2019. Here are the latest ones. To be eligible for a VA loan, the mobile home must:

  • Meet the VAs standard minimum property requirements . These vary from state to state and you can check yours here.
  • Count as real estate under state law and local zoning requirements*.
  • Have a permanent foundation that complies with state law in respect of bearing the required load and withstanding strong winds.
  • Be built to the manufactured home construction and safety standards defined by the U.S. Department of Housing and Urban Development . It should come with a HUD certificate and HUD tags attached to the home.
  • Have a minimum floor area of 400 square feet if its a single-wide unit or 700 square feet if its double-wide.
  • Comply with state and local regulations over manufactured homes, especially if the homes been altered or is missing its HUD tags.
  • *Dont worry if the home you want to buy is currently classed as a chattel. Its usually fairly straightforward to have it redesignated as real property .

    If youre applying for a loan on a home thats yet to be sited, youll have to provide various plans and specifications.

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    Must Be Classified As Real Property

    To get to their sites, just about all manufactured homes travel on public roads. So officially they start out as vehicles.

    Smart owners undertake a title elimination when the home arrives. But many dont. So the home you want to buy may currently be classed as a vehicle or chattel rather than real property. If the current owners pay annual fees for it to the DMV rather than property taxes, you can be pretty sure its still a vehicle.

    In most states, its not hard for you to reclassify the home yourself so that it becomes real property and is therefore eligible for a mortgage. You have to file some forms with the county records office and pay some modest fees.

    However, you may have to jump some hurdles first. You need:Rights to the land where the homes situatedTo remove any wheels and axlesOften to install utilities

    Obviously, these practical steps have often already been taken, even if the home currently counts as a vehicle or chattel.

    How Do I Get A Preapproval Letter

    After you submit an application for a loan, you may be instantly preapproved, and you’ll be able to access your preapproval letter in the Documents section of HomeSquad. However, we often need additional information after you submit your application. In that case, a home loan advisor will contact you in 1 to 2 business days to discuss next steps.

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    Whats The Process For Getting A Mortgage With Navy Federal Credit Union

    After identifying the type of home you hope to purchase and establishing a budget, the first step in the mortgage process is getting pre-approved. Unlike pre-qualification, which only provides a ballpark estimate for how much a lender may approve for a buyer, pre-approval is a more in-depth process that results in a specific mortgage amount for a buyer. Lenders say a pre-approval letter can help your offer stick out with sellers, as it serves as verification of your borrowing capacity. Applying for pre-approval can be done online, over the phone or in person with a Navy Federal Credit Union representative.

    With your pre-approval letter in hand, you can begin your home search and make an offer on property when you find one. After negotiating and agreeing to a deal with the seller, youll need to officially apply for a mortgage with Navy Federal Credit Union. In addition to submitting personal information, including your Social Security Number, youll likely need to provide the lender with proof of income. This includes W-2 statements and federal income tax returns from the past two years, as well as pay stubs from the most recent 30 days showing current and year-to-date income. You may also need to submit the sales contract signed by all parties, proof of assets, including bank statements, documentation pertaining to your long-term debts, among other documents.

    How Has The Pandemic Affected Self

    How To Get Automatic Approvals For Navy Federal Credit Union.

    Due to the economic instability caused by the COVID-19 pandemic, we’ll ask you to submit these additional documents to verify that your income is stable:

    • Audited Year-to-Date P& L statement as of the most recent month preceding application, or
    • Self-Prepared Year-to-Date P& L statement as of the most recent month preceding application AND 3 months of the most recent Business Bank Statements that coincide with the last 3 months on the P& L statement
    • Verification of business within 10 days of closing

    We’ll also ask you to complete a self-employed borrower income assessment to answer questions about how the pandemic has affected your business, such as:

    • Are temporary restrictions in place that impact the business?
    • Are there any impacts due to business supply chain, production costs or customer demand?
    • Have you incurred any new expenses or debts since the beginning of the pandemic?
    • Have you received the Paycheck Protection Program or other loans/grants as a result of COVID-19?

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    Where Can I Get A Mortgage With Navy Federal Credit Union

    Unlike some credit unions, which only have branches in a few states, Navy Federal Credit Union has branches and ATMs nationwide and internationally.

    The credit union currently operates 341 branches around the globe, including 26 international locations and 75 military base installations. They also have a network of more than 30,000 fee-free ATMs.

    How To Apply For A Boat Loan

    Applying for a boat loan is similar to applying for a personal loan or auto loan. Youll need to find a lender first. In some cases, you can apply online. Otherwise you may be able to apply in person at a bank or credit union.

    Next, youll typically need to provide information such as the loan amount, purchase price of the boat, type of boat and age of the boat along with employment information and other personal info about your assets and debts. As with personal loans and auto loans, this could result in a hard credit inquiry to check your credit profile .

    Then youll wait for approval, which could be available as soon as the next business day, or may take a few business days, depending on the lender youre working with.

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    Va Mobile Home Loans: 3 Peculiarities

    Bear in mind three things when considering mobile home financing:

  • Youre not going to get a 30-year mortgage on a mobile home. Theres a 25-year maximum for larger units and a 20-year one for smaller ones.
  • Lenders typically look for slightly better credit scores on these homes. So, if necessary, learn how to raise your credit score and invest some time and effort in doing so. It will pay you back richly.
  • Youll likely find it harder to find a lender. Many companies are unwilling to provide VA loans for manufactured houses
  • Having a loan that lasts less time has pros and cons. Your monthly payments will be higher because youll have fewer installments across which to spread the burden. However, youll also be borrowing for a shorter period, which means your overall cost of borrowing should be lower. After all, youll be paying interest for fewer years.

    Chances are, you wont need great credit to get a loan. The VA doesnt set a formal floor on your FICO credit score, but many lenders look for a minimum of 620. Thats on a scale of 300-850 and FICO categorizes that as fair. You just might find a lender wholl take you on with a slightly lower score, if you can show youre a good borrower in other respects. But dont expect miracles: the default rate on VA loans for manufactured homes has been high in the past and lenders generally have had their fingers burned.

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