How to Finance a Manufactured Home

Manufactured homes can make homeownership more affordable for many, and modern options can often rival site-built homes.

Financing a property with a manufactured home, however, isn’t always as straightforward as financing a conventional home. If you’re considering a property with a manufactured home, there may still be several loan options available. Here are a few things to keep in mind:

Key Considerations

• Age: Buying older homes can sometimes be a bargain. However, age may affect financing eligibility, as many loan programs have model-year requirements.
• Placement: Whether the home is considered a permanent structure or not makes a major difference for your financing options. Most modern manufactured homes are permanently affixed to the property they’re on, but there are exceptions.
• Size: Larger homes will be more expensive, but smaller homes may not meet the minimum size requirements for various loan options.

Potential Financing Options for Manufactured Homes

• Conventional Loans: Some manufactured homes may qualify for conventional financing, especially if they’re newer. Eligibility often depends on factors like the home’s age, size, foundation and whether it’s permanently affixed to the land.
• FHA Loans (Title I and Title II): Title I loans typically require the home to be on owned or leased land and used as a primary residence. Title II loans are more similar to traditional mortgages and generally require the home to meet minimum size and construction standards.
• VA Loans: Eligible veterans and service members may qualify for up to 100% financing. The property must meet VA and local requirements, and documentation confirming permanent placement is typically required.
• Chattel Loans: These loans often come with shorter terms and higher interest rates, but can help finance homes that may not qualify for other loan types (especially if they’re not affixed to land).
• Personal Loans: Personal loans typically have higher interest rates and shorter repayment terms. They may work for supplemental funding rather than financing your entire purchase.

Not sure which option is right for you? Reach out for expert help.