Dreaming of homeownership but thinking a manufactured home is out of reach when it comes to getting a mortgage? You’re not alone. Many people wonder if buying a manufactured home comes with the same financing options as traditional houses.

This question matters because securing a loan is often the key step to turning your dream home into a reality. In this article, we’ll break down your mortgage options, explain what lenders look for, and share practical tips to help you succeed.

Related Video

Can You Get a Mortgage Loan on a Manufactured Home? Complete Guide for 2025

If you’ve fallen in love with the idea of affordable, flexible living in a manufactured home, you might be wondering: can you actually get a mortgage loan to finance it? The short answer is yes—you absolutely can get a mortgage loan on a manufactured home. However, the process is a bit different than getting a loan for a traditional site-built house. Let’s walk through everything you need to know, from eligibility requirements to financing options, challenges, and expert tips.

---

Understanding Manufactured Homes

Before diving into loans, it’s important to clarify what a manufactured home is:

• Manufactured homes are built in a factory and then transported to the site. They must meet certain standards set by the Department of Housing and Urban Development (HUD).
• They’re sometimes called “mobile homes,” but manufactured homes built after 1976 follow stricter HUD codes for quality, safety, and energy efficiency.
• These homes can be placed on privately owned land, in a manufactured home park, or on leased land.

Knowing this distinction matters, because it affects your loan options.

---

Mortgage Loans for Manufactured Homes: The Basics

Yes, you can get a mortgage loan for a manufactured home—but specific conditions apply.

There are two major factors lenders care about when it comes to manufactured home loans:

1. Is the home considered “real property” or “personal property”?
2. Is the home attached to permanent land that you own?

Let’s break these down.

Real Property vs. Personal Property

• If your manufactured home is placed on a permanent foundation and you own the land, it’s usually considered real property. This makes more mortgage options available—just like with a traditional house.
• If your home is not permanently affixed or you don’t own the land (for example, you lease a lot in a park), lenders typically see the home as personal property, similar to a vehicle. In this scenario, you’ll likely need a “chattel” loan, not a regular mortgage.

Key Criteria for a Manufactured Home Mortgage

Here’s what most lenders are looking for:

1. The home was built after June 15, 1976 (per HUD regulations).
2. The home is at least a “double-wide” (some lenders exclude single-wides).
3. It’s placed on a permanent foundation.
4. You own the land the home sits on (or you’re buying it at the same time).
5. The home meets local and HUD building codes.
6. The title is converted from personal to real property (this is a legal step in many states).

---

Financing Options for Manufactured Homes

Multiple loan types are available if you meet the criteria:

1. Conventional Mortgages

• Backed by Fannie Mae and Freddie Mac, these are much like loans for site-built homes.
• Require the home to be classified as real property.
• Generally, your credit score should be at least 620.
• Down payments can start as low as 3% but are often 5-10% for manufactured homes.

2. FHA Loans

• Government-insured by the Federal Housing Administration.
• Allow for lower credit scores (as low as 580 with 3.5% down).
• Can finance both the home and the land, or just the home itself if you’re leasing the site.

3. VA Loans

• For eligible veterans, active-duty service members, and certain spouses.
• Offer zero-down payment options and competitive rates.
• The home must be placed on a permanent foundation and classified as real property.

4. USDA Loans

• For manufactured homes in eligible rural areas.
• May allow zero down payment.
• Must meet property and income guidelines.

5. Chattel Loans

• Used when the home is not permanently attached or you don’t own the land.
• Typically have higher interest rates and shorter repayment terms (15-20 years).
• Easier to qualify for if you’re just buying the home itself.

---

Steps to Getting a Manufactured Home Loan

Here’s how you can navigate the process:

1. Decide if you want to own the land or lease it.
2. Mortgages are easier and more affordable if you’re buying land with the home.
3. Check the type and age of the home.
4. Ensure it was built after 1976 and meets HUD standards.
5. Shop for lenders experienced in manufactured home financing.
6. Not all lenders offer these loans; look for specialists.
7. Determine eligibility and choose the right loan program.
8. Compare FHA, VA, USDA, and conventional loans.
9. Gather documentation.
10. Proof of income, credit history, ownership or purchase agreement for the land, home details.
11. Apply for preapproval.
12. Know your borrowing power before home shopping.
13. Go through the appraisal and inspection process.
14. The lender will require the home and foundation to be inspected.
15. Finalize paperwork and close the loan.

---

Benefits of Financing a Manufactured Home

Opting for a mortgage on your manufactured home comes with several advantages:

• Affordable Entry Point: Manufactured homes typically cost less per square foot than site-built homes.
• Downsizing or Starter Home: Great for first-time buyers or those looking to downsize.
• Potential to Build Equity: When classified as real property, your manufactured home can appreciate over time.
• Flexible Loan Options: Choices for a variety of credit situations and incomes.

---

Challenges to Be Aware Of

While it’s possible to finance a manufactured home, there are some challenges:

• Lender Availability: Fewer lenders specialize in manufactured home mortgages, so you may need to shop around.
• Interest Rates: Rates can be a bit higher compared to traditional homes, especially for chattel loans.
• Loan Terms: Personal property loans have shorter repayment periods and higher monthly payments.
• Land Lease Issues: If you do not own the land, loan options are limited, and rates are higher.
• Appraisal and Resale: Manufactured homes on leased land can depreciate in value, impacting future resale prospects.

---

Practical Tips for Getting Approved

Here are some trusted strategies to improve your chances of securing a mortgage for your manufactured home:

• Work with Experienced Lenders: Seek out lenders who regularly make loans for manufactured or modular homes.
• Get Your Credit in Shape: Higher credit scores unlock better rates and terms.
• Save for a Larger Down Payment: A bigger down payment can lower your monthly payment and make approval easier.
• Consider Buying Land: Whenever possible, buy the land along with your home, or place the home on land you own.
• Verify the Home Meets Standards: Ensure the home’s foundation and installation comply with HUD guidelines and local codes.
• Convert the Title if Needed: If the home is still titled as personal property, work with a title company or attorney to convert it.

---

Best Practices for Loan Shopping

To get the best deal and avoid common pitfalls, keep these best practices in mind:

1. Request Multiple Quotes: Compare offers from several lenders to find the best interest rate and terms.
2. Ask Questions: Don’t be shy—understand the loan’s requirements, fees, fine print, and your obligations.
3. Be Patient with the Process: Financing a manufactured home can take more time than a traditional home loan, especially regarding title conversion or land issues.
4. Consult Experts: Real estate agents, mortgage brokers, and HUD-certified housing counselors familiar with manufactured homes can guide you.

---

What About 30-Year Loans?

Yes, you can get a 30-year loan for a manufactured home, but you may need to meet stricter requirements, such as minimum credit scores and specific home classifications. Generally, 30-year loans are available for homes classified as real property attached to owned land.

---

Frequently Asked Questions (FAQs)

1. What is the difference between a manufactured home and a modular home?

A manufactured home is built in a factory under federal HUD guidelines and then transported to the site. A modular home is also factory-built, but it’s constructed to local or state building codes and is assembled on a permanent foundation. Modular homes are often treated like site-built homes for financing.

2. Are there credit score requirements for manufactured home loans?

Yes, minimum credit scores vary by loan type:
– FHA loans: as low as 580
– Conventional loans: usually 620 or higher
– VA loans: no set minimum, but most lenders look for 620+

A higher credit score makes it easier to get approval and better rates.

3. Can I get a loan for a manufactured home on leased land?

You can, but your options are typically limited to chattel loans, which have higher interest rates and shorter terms. Traditional mortgages generally require you to own the land the home sits on.

4. Will my manufactured home appreciate in value?

Manufactured homes on owned land and permanent foundations can appreciate like traditional homes, especially in desirable areas. Homes on leased land or those not classified as real property may depreciate over time.

5. Are down payments higher for manufactured home loans?

Down payments can be:
– FHA loans: as low as 3.5%
– Conventional loans: typically 5-10%
– VA loans: 0% for those who qualify
– Chattel loans: may require 5% or more, depending on credit

Putting more down can make it easier to qualify and lower your interest rate.

---

Conclusion

Financing a manufactured home is achievable, but it comes with unique rules and considerations compared to traditional home loans. The most important steps are to work with the right lender, make sure your home meets HUD standards, decide whether to buy land, and prepare financially. With proper planning and guidance, your dream of affordable homeownership in a manufactured home can become reality.