does a va loan cover modular homes

When it comes to financing a new home, many veterans and active-duty service members wonder if a VA loan can be used to purchase a modular home. The answer to this question is yes, but there are certain requirements and considerations to keep in mind. Read on to find out more about using a VA loan to buy a modular home.

Eligibility for VA Loans

Before delving into the specifics of whether a VA loan covers modular homes, it’s important to understand the eligibility criteria for obtaining a VA loan. To be eligible for a VA loan, an individual must be a veteran, active-duty service member, or a surviving spouse of a service member. Additionally, they must meet the service requirements established by the Department of Veterans Affairs.

Definition of Modular Homes

Modular homes are prefabricated structures that are constructed off-site in sections or modules, which are then transported to the final location and assembled. These homes are built to conform to state and local building codes and are often indistinguishable from traditional stick-built homes once completed.

VA Loan Requirements for Modular Homes

While VA loans can be used to finance the purchase of a modular home, there are several requirements that must be met:

  1. The modular home must be affixed to a permanent foundation.
  2. The home must be considered real property, meaning the borrower holds both the land and the home as one unit.
  3. The modular home must be built by a manufacturer approved by the VA.
  4. The home must meet all local building codes and regulations.
  5. The borrower must also meet the credit and income requirements set by the VA and the lender.

The Advantages of Using a VA Loan for a Modular Home

Using a VA loan to purchase a modular home can offer several advantages:

  • No down payment: VA loans often do not require a down payment, making it easier for veterans and service members to own a home.
  • No mortgage insurance: Unlike many other types of loans, VA loans do not require private mortgage insurance (PMI).
  • Competitive interest rates: VA loans typically feature competitive interest rates, potentially saving borrowers money over the life of the loan.
  • Favorable loan terms: VA loans often offer more flexible and favorable loan terms compared to conventional loans.

Limitations of VA Loans for Modular Homes

While VA loans offer many benefits, there are a few limitations to be aware of when it comes to financing a modular home:

  1. Maximum loan amount: The VA places a limit on the amount it will guarantee, which can impact the types of modular homes that can be financed.
  2. Location restrictions: VA loans are intended for primary residences, so the modular home must be located on land that will be used as the borrower’s primary residence.
  3. Credit and income requirements: Borrowers must meet certain credit and income requirements to qualify for a VA loan.


In summary, a VA loan can be used to purchase a modular home as long as it meets the necessary requirements set forth by the VA. This can be a great financing option for veterans and active-duty service members looking to buy a home. However, it’s important to carefully review the specific requirements and limitations to determine if a VA loan is the best fit for your modular home purchase.