can you buy a modular home with a va loan

Yes, you can buy a modular home with a VA loan. The Department of Veterans Affairs (VA) loan program provides eligible veterans, active-duty service members, and their surviving spouses the opportunity to finance a home purchase with favorable terms. This includes the option to use a VA loan to purchase a modular home, which offers several benefits such as affordability and flexibility.

What is a Modular Home?

A modular home, also known as a prefabricated or factory-built home, is constructed off-site in sections called modules. These modules are then transported to the home site and assembled on a permanent foundation. Modular homes are built to the same building codes and standards as traditional stick-built homes, offering the same level of quality and durability.

Modular homes offer various advantages:

  • Cost-effective: Modular homes are typically more affordable than traditional site-built homes.
  • Customization: They can be customized to meet the homeowner’s specific needs and preferences.
  • Time-efficient: The construction process is quicker compared to traditional homes, as many components are built simultaneously.
  • Energy-efficient: Modular homes often use energy-efficient materials and appliances, reducing utility costs.
  • Quality control: The controlled factory environment ensures consistent quality and adherence to building codes.

VA Loan Eligibility for Modular Homes

For veterans, active-duty service members, and eligible surviving spouses to use a VA loan for a modular home, they must meet certain requirements:

  1. Eligibility Criteria: You must be eligible for a VA loan, which includes meeting specific service requirements.
  2. Modular Home Certification: The modular home must meet the VA’s minimum property requirements (MPRs) and receive certification from a VA-approved appraiser.
  3. Land Ownership: You should either own the land on which the modular home will be placed or purchase it simultaneously with the home.
  4. Permanent Foundation: The modular home must be placed on a permanent foundation, meeting both local and VA requirements.
  5. Loan Limits and Entitlement: VA loan limits may apply, and you need to have remaining entitlement to use for the modular home purchase.

It’s important to note that individual lenders may have additional requirements or guidelines for VA loans on modular homes. Consulting with a knowledgeable VA loan specialist or lender can help in navigating the specific details and ensuring a smooth loan process.

Benefits of Buying a Modular Home with a VA Loan

Obtaining a VA loan to purchase a modular home offers several benefits:

  • No Down Payment: VA loans typically don’t require a down payment, providing a great advantage for borrowers.
  • Competitive Interest Rates: VA loans often offer competitive interest rates, potentially saving the borrower money over the life of the loan.
  • No Private Mortgage Insurance (PMI): VA loans don’t require PMI, which is usually required for conventional loans with a down payment less than 20%.
  • Favorable Loan Terms: VA loans generally have more flexible credit and qualification requirements compared to conventional loans.
  • Streamlined Refinancing Options: VA loans offer streamlined refinancing options, allowing borrowers to potentially lower their interest rate or switch from an adjustable-rate to a fixed-rate loan in the future.

Applying for a VA Loan for a Modular Home

The process of obtaining a VA loan for a modular home is similar to that of a traditional home purchase:

  1. Obtain a Certificate of Eligibility (COE): Before applying for a VA loan, you’ll need to obtain a COE to confirm your eligibility for the program.
  2. Pre-Approval: It’s beneficial to get pre-approved for a VA loan, which involves completing a loan application and providing necessary documentation.
  3. Find a Lender: Research and choose a lender experienced in VA loans for modular homes.
  4. Start the Home Search: Work with a real estate agent to find a suitable modular home that meets your needs.
  5. Loan Application and Approval: Complete the loan application process with your chosen lender, providing all required documentation for underwriting and approval.
  6. Home Inspection and Appraisal: The VA requires a home inspection and appraisal by an approved professional to ensure the property meets their standards.
  7. Closing: If everything goes smoothly, you’ll proceed to closing, where you’ll sign the necessary paperwork to finalize the purchase of your modular home.


With a VA loan, you have the opportunity to purchase a modular home, enjoying various benefits such as affordability, flexibility, and favorable loan terms. Remember to meet the eligibility requirements, ensure the modular home meets VA standards, and work with a knowledgeable VA lender and real estate agent to navigate the process successfully. Take advantage of the VA loan program to make your dream of owning a modular home a reality.