will a va loan cover a modular home

Many veterans and active-duty military members dream of owning their own homes. If you fall into this category, you may be wondering if you can use a VA loan to purchase a modular home. The good news is that VA loans can indeed be used to finance a modular home. However, there are certain criteria that need to be met for the VA loan to be approved for this type of property.

Understanding VA Loans

A VA loan is a mortgage loan program specifically designed for veterans, active-duty military members, and their eligible surviving spouses. This type of loan is provided by private lenders but is guaranteed by the Department of Veterans Affairs. VA loans generally offer more favorable terms and conditions compared to conventional loans, making them an attractive option for those who qualify.

Defining Modular Homes

Before diving into whether a VA loan covers modular homes, it’s important to understand what exactly a modular home is. Unlike traditional stick-built homes, modular homes are built off-site in a factory and then transported to the desired location for assembly. They are built to the same building codes and standards as site-built homes.

Modular homes offer several advantages, including cost savings, faster construction times, and design flexibility. They are a popular choice for many homebuyers, including veterans. However, it’s crucial to determine whether a VA loan can cover the cost of a modular home.

VA Loan Eligibility for Modular Homes

Here are some key factors to consider when determining if a VA loan will cover a modular home:

  1. Permanent Foundation: To be eligible for a VA loan, a modular home must be placed on a permanent foundation. This means it should be affixed to a permanent base such as a concrete slab or a crawl space with footings.
  2. Blueprint Approval: The modular home must have the appropriate certifications and approvals from the local building authorities and VA. This ensures that the home meets all safety and construction standards.
  3. Location: The location of the modular home can also impact its eligibility for a VA loan. It must be situated on a suitable lot designated for residential purposes and meet local zoning requirements.

Meeting these eligibility criteria is essential in determining whether a VA loan will cover a modular home. It’s recommended to consult with a knowledgeable VA-approved lender who can guide you through the process and provide accurate information based on your specific circumstances.

VA Loan Benefits

Applying for a VA loan to finance a modular home comes with numerous benefits. Some of these advantages include:

  • No Down Payment: VA loans often allow eligible individuals to purchase a home with no down payment. This can significantly reduce the upfront costs associated with buying a modular home.
  • Competitive Interest Rates: VA loans typically offer competitive interest rates, ensuring that your mortgage payments remain affordable over the long term.
  • No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans do not require private mortgage insurance, saving you money each month.
  • Favorable Loan Terms and Limits: VA loans offer favorable terms and higher loan limits, allowing veterans to secure financing for their modular home needs.


If you’re a veteran or an active-duty military member considering a modular home, a VA loan can be a suitable financing option. As long as the modular home meets the necessary eligibility criteria, you can take advantage of the benefits offered by a VA loan. Remember to consult with a qualified VA-approved lender to navigate the loan process and ensure a smooth homebuying experience.