Curve

Getting a loan on a manufactured home

Gina Pogol
The Mortgage Reports contributor

Financing your manufactured home

Is it hard to get a mortgage for a mobile or manufactured home?

No, but it is different.

Loans for manufactured homes come from Fannie Mae and Freddie Mac, two agencies that write the rules for conforming mortgages.

FHA loans, plus financing from USDA and VA, are other avenues to finance a manufactured home. Personal loans can work, too.

What’s available to you depends on your eligibility as a borrower, the type and age of the structure, and whether it’s considered real or personal property.

Here’s how to find the best financing for your manufactured house.

Check my rate for a manufactured home loan (personal loan) up to $100k * (Jul 21st, 2019)
*TheMortgageReports and/or our partners are currently unable to service the following states – CA, MA, NJ, NV, RI, WI


In this article:

Getting a loan for a manufactured home is different than getting a traditional home loan.

  • Not all manufactured housing is considered real estate, which is required to qualify for a traditional home loan. If your mobile home is at least 400 square feet, on an approved foundation and taxed as real property, you can apply for conventional or government-backed mortgages.
  • If you pay annual fees to the DMV, or the building is still on wheels, the property is a vehicle, not a house. Manufactured housing loans for personal property instead of real estate are available if you have at least five percent down and the home is reasonably new.
  • Many manufactured home loan programs have strict guidelines about the property condition and age. That’s because manufactured housing tends to depreciate, while traditional home values tend to increase over time.
  • If your manufactured or mobile home does not qualify for traditional financing, you can try a personal loan>>

Is the home “real” or “personal” property?

Not all manufactured housing is considered real estate, which is a requirement to qualify for a traditional home loan.

If your mobile home is at least 400 square feet, on an approved foundation and taxed as real property, you can apply for conventional or government-backed mortgages.

If you pay annual fees to the DMV, or the building is still on wheels, however, you’re technically living in a vehicle, not a house.

That’s okay, though. Moveable mobile homes can still be financed, just not with home mortgages.

One option is a personal loan, which is not attached to the property. You could get a personal loan to purchase or refinance a manufactured home. Approval times are fast and you might have an easier time getting approved for a personal loan rather than a mortgage.

Check my rate for a manufactured home loan (personal loan) up to $100k * (Jul 21st, 2019)
*TheMortgageReports and/or our partners are currently unable to service the following states – CA, MA, NJ, NV, RI, WI

Financing for moveable homes

There are a couple different options if you can’t get traditional mortgage financing for your mobile home.

Personal Loans

Personal loans are a solid alternative to the traditional mortgage. The most attractive thing about personal loans is that there is absolutely no property approval involved whatsoever. The loan is based on you, not the property, so the mobile home can be in poor shape or too old to finance, and you could still be approved.

And, financing is fast. In a week or less, you can have the funds. No drawn-out mortgage process!

So if your manufactured home is still on wheels, or is not financeable for any other reason, look into a personal loan.

Check my rate for a manufactured home loan (personal loan) up to $100k * (Jul 21st, 2019)
*TheMortgageReports and/or our partners are currently unable to service the following states – CA, MA, NJ, NV, RI, WI

FHA Title I program

Manufactured housing loans for personal property — homes that are not classified as real estate — are readily available if you have at least five percent down and the home is reasonably new.

Interest rates are higher than mortgage rates because loans for a moveable property are riskier for lenders.

The FHA backs loans for mobile home vehicles with its Title I program. Interest rates are negotiated between borrowers and private lenders offering this loan type. Keep in mind that the typical home lender might not offer this type of loan.

The interest rate is fixed for the entire loan term, and there are maximum loan amounts:

  • Manufactured home: $69,678
  • Manufactured home lot: $23,226
  • Manufactured home & lot: $92,904

There are also maximum loan terms.

  • 20 years for a manufactured home or a single-wide home and lot
  • 15 years for a manufactured home lot loan
  • 25 years for a loan on a multi-wide manufactured home and lot

Call around, and perform online searches for lenders who offer FHA Title I financing.

Financing for foundation-secured “real” property

If your manufactured house is classified as real property, you can finance it with a mortgage. Most likely, that’s a Fannie Mae, Freddie Mac or government-backed mortgage.

The loans work almost exactly the same as financing for traditional “stick-built” houses.

With Fannie and Freddie loans, you can put as little as five percent down. There are extra risk-based loan fees for manufactured housing, so rates are slightly higher.

FHA loans work the same way for manufactured or traditional homes: the required down payment is 3.5 percent if your FICO score is 580 or higher, and ten percent if it’s between 500 and 579. The home must have been built after June 15, 1976, and it cannot be in a flood zone.

The VA loan program for manufactured housing requires five percent down, and the loan terms are shorter – between 20 and 25 years, depending on the property.

USDA (Rural Housing) loans require no down payment, but the manufactured home must be brand new and borrowers must meet income-eligibility guidelines.

Check my rate for a manufactured home loan (personal loan) up to $100k * (Jul 21st, 2019)
*TheMortgageReports and/or our partners are currently unable to service the following states – CA, MA, NJ, NV, RI, WI

Getting a personal loan on your manufactured home

Many manufactured home loan programs have some pretty strict guidelines about the property condition and age. That’s because manufactured housing tends to depreciate, while traditional home values tend to increase over time.

If you’re set on purchasing a home that doesn’t meet lender requirements, there are always personal loans.

You’ll need decent credit to get an unsecured personal loan, because it’s not attached to your property.

Funding is fast. Once approved, you could receive funds to purchase, fix up, or refinance your manufactured home the next business day.

Typically, to receive a personal loan, you must be a U.S. citizen or permanent resident with a social security number, have steady income, and good credit history.

Maximum loan amounts are around $35,000 to $50,000 for most lenders. But some lenders can approve loans up to $100,000.

Can’t get a traditional loan on your manufactured home? Try a personal loan.

What are today’s rates?

Today’s rates are low, and that’s helping more renters become homeowners. Manufactured housing is an affordable first step to get into the housing market.

Get a rate quote for your home loan. No social security number is required to start, and all quotes come with access to your live credit scores.

Check my rate for a manufactured home loan (personal loan) up to $100k * (Jul 21st, 2019)
*TheMortgageReports and/or our partners are currently unable to service the following states – CA, MA, NJ, NV, RI, WI