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VA Mortgage Loans for Modular Homes

Modular homes have become extremely popular in recent years due to their low cost and energy-efficient qualities. Owners of modular homes enjoy more options for customization, faster construction, and an overall price tag that’s about 30% less than a traditional home. If you’re a veteran or active duty service member, you may be wondering if it’s possible to use VA mortgage loans for modular homes. Here’s what you need to know. 


Can You Buy a Modular Home with a VA Loan?

Modular homes are generally cheaper than traditional homes, but when it comes to financing, things can get tricky. Whether or not you can buy a modular home with a VA loan mostly depends on a few factors including:

1) Whether the home is affixed to a permanent foundation

2) Whether the home meets the VA’s Minimum Property Requirements

3) Your lender’s policies


VA Loan Requirements for Modular Homes

The VA has very specific requirements for modular homes. Not only do modular homes need to meet the VA’s Minimum Property Requirements for conventional housing, but they also must:

  • Meet all state and local building codes
  • Use comparable sales for the VA appraisal
  • Meet all on-frame modular home requirements as specified by the VA


Challenges of Buying a Modular Home with a VA Loan

The main challenge that VA borrowers come against when trying to buy a modular home is finding a lender. Not all lenders are willing to provide VA mortgage loans for modular homes. 

It may take some effort to find a lender experienced in financing modular homes through VA loans. Additionally, you may encounter other challenges based on the specific circumstances and regulations in your area.

That being said, it’s important to keep in mind that the road ahead of you may be a difficult one. But that shouldn’t force you to give up your dreams. If you have your heart set on buying a modular home, there are options. You may just have to work a little harder to find them. Additionally, you could also consider other means of financing your home purchase. 

Lastly, if you’re planning on buying a modular home, it’s important to make sure your lender is aware. That way, they know what to expect and can guide you through the process.


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