Clayton Blog

What is a VA Loan?

When it comes to mobile home financing, the variety of home loan programs available can be a bit overwhelming. One type of loan to consider is a loan guaranteed by the US. Department of Veterans Affairs, which are often called VA loans for short.


VA loans were specially created to help servicemembers, veterans and eligible spouses become homeowners. The U.S. Department of Veterans Affairs offers a home loan guaranty and other housing-related programs to help those who are eligible buy, build, repair, retain or adapt a home to live in.


There are a few types of VA loan programs available. Visit the U.S. Department of Veterans Affairs website to learn more.


How does a VA loan work?

VA home loans are made through private lenders and are partially guaranteed by the Department of Veterans Affairs if guidelines are met. Some standard VA loan features include:

  • No private mortgage insurance premium requirement
  • VA rules limit the amount you can be charged for closing costs
  • Some closing costs may be paid by the seller
  • The lender can't charge you a penalty fee if you pay the loan off early1


Who is eligible for a VA loan?

There are some extra VA loan requirements. VA-guaranteed loans are only available to eligible Servicemembers, Veterans, and National Guard and Reserve Members when the home will be occupied by them or a spouse and/or dependent (for active duty service members). Applicants must also have satisfactory credit and sufficient income to meet the expected monthly obligations for the loan. The lender you choose to work with can help you understand what you’re eligible for, or you can find more about VA loan eligibility on the VA website.


How to apply for a VA loan

Since the VA does not make loans directly, the application process can vary from lender to lender. Ask your chosen lender what all needs to be done in order to apply for a VA loan. And remember, the choice of lender is always up to you. Learn more about how the buying process works with a VA loan, visit the VA website.

Whether you’re looking to downsize or need a new home for your growing family, if you’re eligible, a VA loan could help you get into the home of your dreams! Do your research to find the right loan program for you, and talk to your lender of choice about any questions you may have about the manufactured home loan process.


See Why You Should Downsize




1 Department of Veterans Affairs, Veterans Benefits Administration, and Loan Guaranty Service. "VA Home Loans." Reserve Educational Assistance Program (REAP) - Education and Training. Accessed July 06, 2018.




Topics Financial