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Banks' rules can be frustrating. They are investors in your home, so they definitely have opinions about where they put their money. The reason for the loan denial is the classification of a manufactured home as "personal property", not "real property". It isn't so much about your liklihood of default, but of the legal classification of the property.Possibly you could get a mortgage on the land (definitely real property) and a separate loan (not a mortgage) on the home. The loan on the home might come at a considerably higher interest rate, however, so be prepared for that.
In my humble opinion, the one area in which this country has treated it veterans the proper level of respect is in housing. The GI bill made is possible for thousands of veterans to by home post-World War II and veterans are eligible for low interest home loans through the VA. Housing is the least of the problems facing our veterans. Medical care and job opportunities for veterans are where we need to improve.
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