For many first-time buyers and Veterans, traditional homes can feel out of reach due to limited inventory and financing challenges. Fortunately, a VA loan can be used to buy a manufactured home or modular home, offering a more affordable and accessible path to homeownership. These non-traditional housing options are eligible for VA financing under specific VA loan property guidelines, which cover things like foundation type, square footage, and HUD certification.
Can You Use a VA Loan to Buy a Manufactured Home?
Yes, eligible Veterans can buy a manufactured home using a VA loan, but they must meet specific standards. These homes, built after 1976 and regulated by the U.S. Department of Housing and Urban Development (HUD), differ from older mobile homes built before HUD codes were established.
Most VA-approved lenders will only finance manufactured homes that meet certain conditions. For example, single-wide homes or those moved from their original location are typically ineligible.
VA Loan Requirements for Manufactured Homes
| Requirement | Description |
| Permanent Foundation | Home must be securely attached to land. |
| Minimum Square Footage | Must have at least 700 sq. ft. of interior living space. |
| Real Property Status | Home must be legally classified as real estate. |
| HUD Certification Labels | Must display HUD tag on the exterior and data plate inside. |
| Local Code Compliance | Property must meet all state and local zoning/building codes. |
Homes that fall short of these requirements will not qualify for VA financing. Additionally, lenders typically avoid financing previously relocated homes due to structural risks.
Will the VA Approve a Moved Manufactured Home?
Generally, no. If a manufactured home has been moved from its original site, it is unlikely to be financed with a VA loan. The property must remain fixed to its original permanent foundation and meet all VA Minimum Property Requirements (MPRs) to be eligible.
Buying a Modular Home With a VA Loan
Modular homes present another excellent option for Veterans seeking affordability and flexibility. Unlike manufactured homes, modular homes are built in factory sections and assembled onsite by licensed professionals. The VA treats these homes similarly to traditional site-built homes when approving loans.
VA Loan Guidelines for Modular Homes
| Requirement | Description |
| Foundation | Must be installed on a permanent foundation. |
| Building Code Compliance | Must meet local and state codes (not federal HUD codes). |
| Inspection Approval | Requires approval by local building authorities. |
| Permanent Installation | Home must not be capable of being moved after placement. |
Modular homes are usually easier to finance with a VA loan, assuming they meet the criteria above and are treated as real property.
Can You Build a Modular Home With a VA Loan?
Building a new modular home with a veteran loan is possible but more complex. Most lenders don’t offer true $0 down veteran construction loans. Instead, Veterans typically follow a two-step process:
- Secure a short-term construction loan from a builder or community lender.
- Refinance into a VA loan after the home is completed and inspected.
While some lenders may advertise construction-to-permanent veteran loans, they are rare. Most Veterans complete construction with one loan and transition into VA financing afterward.
Next Steps
Manufactured and modular homes are viable paths to homeownership for Veterans using VA loan benefits. However, strict property requirements and lender restrictions make it essential to work with a knowledgeable VA lender. Understanding how the VA treats manufactured versus modular homes — and preparing your financing accordingly, ensures a smoother buying process and helps Veterans make informed housing decisions.
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