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VA Loans for Manufactured and Modular Homes

The VA loan benefit covers some factory-built home types, each with its own set of rules. Here's how they compare.

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By clicking “Submit” below, you provide your electronic signature and expressly consent to receive telephonic sales and marketing calls, texts, and emails from or on behalf of NewDay USA—including calls and texts made using an autodialer, an automated system for the selection or dialing of telephone numbers, or an artificial or prerecorded voice—to the number/address you provided above. Your consent is not required to obtain a mortgage or do business with us.

By clicking “Submit”, you also agree to our Privacy Policy and Terms with an Arbitration Agreement and Class Action Waiver.

If you do not wish to receive automated marketing calls or texts, please do not submit this form and instead call us at 800-405-4187 to start or complete your loan request.

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Written by: Jorgen Kendrick

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Veterans looking at manufactured or modular homes can use their VA loan benefit for both property types, but the rules are different depending on which type you're buying. Here's a breakdown of what qualifies and why.

What's the Difference Between Manufactured and Modular Homes?

These terms sometimes get used interchangeably, but they aren't the same thing, and the VA treats them differently.

A manufactured home is built in a factory on a permanent steel chassis, then transported to its site in one or more sections. The federal government regulates manufactured home construction through the HUD Manufactured Home Construction and Safety Standards, commonly called the HUD Code, which took effect on June 15, 1976. Homes built before that date are not eligible for VA financing under any circumstances.

A modular home is also built in sections in a factory, but it's assembled on site and must comply with the same state and local building codes that apply to traditionally built homes. Modular homes must meet all state and local building codes. Once installed, the VA treats modular homes the same as site-built homes for lending purposes.

The term "mobile home" is sometimes used casually to describe manufactured housing, but it has no standing in the VA loan program. What matters is whether the home was built to HUD Code standards and how it's classified under state law.

Modular Homes

If you're buying a modular home, the VA loan process looks essentially the same as buying a traditional house. Because modular homes are built to local building codes, permanently affixed to a foundation on land you own, and treated as real property from day one, they qualify for standard VA purchase loan terms:

No down payment required

No private mortgage insurance

Competitive interest rates

Loan terms up to 30 years

There's no special approval category for modular homes, no additional inspections beyond standard VA appraisal requirements, and no lender restrictions that don't apply to any other property type. And if you already own a modular home with a VA loan, refinancing options including the IRRRL and cash-out refinance work the same way they would for any other VA-backed property.

Manufactured Homes

A manufactured home can be financed with a VA loan, but it has to clear several hurdles that a site-built or modular home doesn't face. The core issue is classification. The VA can only guarantee a mortgage on real property. A manufactured home isn't automatically classified as real property. By default, it may be treated like a vehicle under state law, complete with a title similar to a car title. That has to change before VA financing is possible, and it must remain classified as real property for refinancing options to be available later.

The Five Core Requirements

1. Built on or after June 15, 1976: Any manufactured home must have been built after the HUD Code took effect. Homes built before that date are ineligible, regardless of current condition. The home must display a HUD certification label on its exterior and an interior data plate showing the manufacturer, model, serial number, and build date. A home missing either of these is very difficult to finance.

2. Permanently affixed to a foundation: The home must be permanently attached to a foundation that meets local codes and the HUD Permanent Foundations Guide for Manufactured Housing. All wheels, axles, and towing hardware must be removed. The foundation itself must be inspected and certified by a licensed professional engineer or registered architect, confirming it complies with the HUD guide.

3. Classified as real property under state law: The vehicle title on the home must be surrendered and the property converted to real estate status through your state's legal process. A home that isn't titled as real property also won't qualify for a VA cash-out refinance or IRRRL.

4. Minimum size requirements: Per the VA Lender's Handbook, single-wide manufactured homes must have at least 400 square feet of living space. Double-wide homes must have at least 700 square feet. These are VA minimums; individual lenders may have their own additional requirements.

5. Must meet VA Minimum Property Requirements: Like any property financed with a VA loan, the home must be safe, structurally sound, and sanitary. A VA-approved appraiser will conduct an inspection and issue a Notice of Value. Manufactured homes are likely to receive more scrutiny during the appraisal process than site-built homes.

What Won't Qualify

Understanding the limitations is just as important as knowing what's permitted.

Homes built before June 15, 1976 are not eligible. The pre-1976 construction standard predates the HUD Code, and VA financing is not available regardless of the home's current condition or any renovations made since.

Homes that have been moved from their original installation site are very difficult to finance with a VA loan because moving can compromise the structural integrity and foundation work that the original certification covered.

Homes on rented lots present a significant obstacle. VA loans generally require the Veteran to own the land the home sits on. This also applies to refinancing — if you don't own the land, your options are significantly limited.

Homes without HUD labels will almost always be declined. Missing labels are common on older units, and most lenders won't proceed without an acceptable verification path, which isn't always available.

Read more about VA loans and the range of homeownership options available to Veterans and military families.

FAQs

Can I use a VA loan to buy a manufactured home in a mobile home park?

Not if the lot is rented rather than owned. VA loans under the standard purchase program require ownership of the land the home sits on. If the lot is leased, the property won't qualify under standard VA terms.

Is a double-wide manufactured home easier to finance than a single-wide?

Double-wides tend to have better lender acceptance because they're larger, often appraise higher, and are more comparable to site-built homes in the market. Single-wides are more restricted and some lenders won't finance them at all, even if they technically meet VA requirements.

Do I need a down payment for a VA manufactured home loan?

If the home is permanently affixed, classified as real property, and meets all VA requirements, no down payment is required under VA program rules. However, some lenders impose their own down payment requirements for manufactured homes even when VA guidelines don't require one.

Can I refinance a manufactured home with a VA loan?

Yes. An existing VA loan on a manufactured home can be refinanced using the IRRRL to obtain a lower interest rate. A cash-out refinance may also be available depending on the property's classification and lender policies. The home must still meet all the requirements above for refinancing to be possible.

What's the difference in financing terms between a modular and a manufactured home?

Modular homes qualify for standard VA purchase loan terms, including 30-year loans with no down payment. Manufactured homes that meet all requirements also qualify under the standard program, but the process involves more documentation and lender participation is narrower.

About The AuthorJorgen Kendrick