Mobile home financing depends on whether you own the land and whether the home is permanently affixed. If you own the land and the home is on a permanent foundation, you can get conventional, FHA or VA mortgages with standard rates. If the home is on leased land or not permanently attached, you’ll need a chattel loan or FHA Title I loan with higher rates and shorter terms. Manufactured homes built after 1976 to HUD standards have more financing options.
Types of Manufactured Housing
Mobile Homes vs Manufactured vs Modular
| Type | Definition | Financing Options |
|---|---|---|
| Mobile home | Built before June 15, 1976 | Very limited |
| Manufactured home | Built after June 15, 1976 to HUD code | More options available |
| Modular home | Built to local building codes, assembled on-site | Same as site-built homes |
Why the Date Matters
June 15, 1976: HUD manufactured housing standards took effect
Before this date:
- Called “mobile homes”
- No federal construction standards
- Very difficult to finance
- Considered personal property
After this date:
- Called “manufactured homes”
- HUD certification label required
- More financing options
- Can be real property if properly installed
Financing Options
Conventional Mortgages
Available when:
- Home is manufactured (post-1976) or modular
- On permanent foundation
- You own the land
- Home titled as real property
Terms:
- 15-30 year terms
- Standard mortgage rates
- Same requirements as site-built homes
Programs:
- Fannie Mae MH Advantage
- Freddie Mac CHOICEHome
- Standard conforming loans
FHA Loans
Title II (Real Property):
- Home on permanent foundation
- You own the land
- Standard FHA terms
- 3.5% down, 580 credit
Title I (Personal Property):
- Home may be on leased land
- Or not on permanent foundation
- Higher rates than Title II
- Shorter terms (up to 20 years)
| FHA Title I Limits | Maximum Loan |
|---|---|
| Manufactured home only | $69,678 |
| Lot only | $23,226 |
| Home and lot | $92,904 |
VA Loans
Available for:
- Manufactured homes on permanent foundation
- You own the land
- Meet VA minimum property requirements
Features:
- 0% down payment
- Competitive rates
- No PMI
USDA Loans
Available for:
- Manufactured homes in rural areas
- Permanent foundation
- Meet USDA property standards
- Income limits apply
Chattel Loans
For homes as personal property:
- Home not on permanent foundation
- Or on leased/rented land
- Higher interest rates (7-12%+)
- Shorter terms (10-20 years)
- Faster approval process
Land Ownership Impact
You Own the Land
Best financing options available:
- Conventional mortgages
- FHA Title II
- VA loans
- USDA loans
Requirements:
- Home on permanent foundation
- Home titled as real property
- HUD certification tag present
You Lease/Rent the Land
Limited options:
- Chattel loans
- FHA Title I
- Personal property loans
Higher costs:
- Higher interest rates
- Shorter terms
- Larger down payments
Buying Home and Land Together
Many lenders offer combination loans:
- Finance land purchase and home together
- May require construction-style disbursement
- Must be permanently installed
Permanent Foundation Requirements
What Makes It Permanent
To qualify for conventional financing, manufactured homes must be:
- On permanent foundation (not wheels/axles)
- Anchored according to manufacturer specs
- Connected to utilities (water, sewer, electric)
- Wheels, axles, hitch removed
Foundation Types
Acceptable:
- Concrete perimeter foundation
- Concrete slab with anchors
- Pier and beam with tie-downs (varies by lender)
Not acceptable:
- Wheels still attached
- Temporary blocking only
- Mobile on-site capability
Certification Required
Engineer’s certification:
- Foundation meets HUD and local codes
- Proper anchoring documented
- Required by most lenders
Converting Personal Property to Real Property
The Process
Steps:
- Place home on permanent foundation
- Remove wheels, axles, hitch
- Connect to permanent utilities
- Obtain engineer’s foundation certification
- Retire vehicle title (if applicable)
- Record as real property with county
Why It Matters
As personal property:
- Chattel loans only
- Higher rates
- Shorter terms
- Depreciates like a vehicle
As real property:
- Mortgage financing available
- Lower rates
- Longer terms
- May appreciate with land
Interest Rates Comparison
Typical Rate Differences
| Loan Type | Rate Premium vs Site-Built |
|---|---|
| Conventional (real property) | +0.25-0.5% |
| FHA Title II | Similar to standard FHA |
| VA manufactured | Similar to standard VA |
| Chattel loan | +2-5% |
| FHA Title I | +1-2% |
Why Rates Are Higher
- Perceived higher risk
- Lower resale value historically
- Fewer lenders compete
- Property depreciation concerns
Down Payment Requirements
By Loan Type
| Loan Type | Minimum Down |
|---|---|
| Conventional (real property) | 5% typical |
| FHA Title II | 3.5% |
| FHA Title I | 5% |
| VA | 0% |
| USDA | 0% |
| Chattel | 5-20% |
Finding Manufactured Home Lenders
Who Offers These Loans
Specialized lenders:
- 21st Mortgage Corporation
- Vanderbilt Mortgage
- Cascade Financial Services
- Triad Financial Services
Major lenders:
- Some banks and credit unions
- Online lenders
- Mortgage brokers (shop around)
Questions to Ask Lenders
- Do you lend on manufactured homes?
- What are your foundation requirements?
- What are current rates for manufactured homes?
- What documentation do you need?
- How long is the approval process?
Manufactured Home Buying Process
Step 1: Determine What You’re Buying
- Home only?
- Home and land together?
- On leased land?
Step 2: Check Financing Options
Based on your situation:
- Land ownership
- Foundation type
- Home age and certification
- Your credit and income
Step 3: Get Pre-Approved
Find lenders who finance your scenario:
- Compare rates and terms
- Understand requirements
- Get pre-approval letter
Step 4: Find or Verify the Home
For existing homes:
- Verify HUD certification tag
- Check foundation type
- Inspect condition
For new homes:
- Work with dealer
- Coordinate with lender
- Plan foundation and installation
Step 5: Complete Transaction
- Appraisal (if required)
- Inspection (recommended)
- Closing
- Title transfer
Refinancing Manufactured Homes
When You Can Refinance
Easier if:
- On permanent foundation
- You own the land
- Titled as real property
- Good equity and credit
Harder if:
- On leased land
- Personal property title
- Limited lender options
Converting to Better Financing
If you have a chattel loan:
- Install permanent foundation
- Convert title to real property
- Refinance to conventional mortgage
- Save on interest and build equity
Manufactured Home Appreciation
Do They Appreciate?
Historically: Manufactured homes depreciated like vehicles
Modern reality:
- Homes on owned land may appreciate with land
- Quality has improved significantly
- Location matters most
- Foundation type impacts value
Factors Affecting Value
| Factor | Impact |
|---|---|
| Land ownership | Significant positive |
| Permanent foundation | Positive |
| Location | Major factor |
| Home age and condition | Moderate |
| Local market | Varies |
Frequently Asked Questions
Can I get a regular mortgage on a mobile home?
If it’s a manufactured home (post-1976), on a permanent foundation, and you own the land—yes, you can get conventional, FHA or VA financing with terms similar to site-built homes.
What’s the difference between a mobile home and manufactured home?
Mobile homes were built before June 15, 1976, before HUD standards. Manufactured homes were built after that date to federal HUD standards. Manufactured homes have more financing options.
Why are mobile home loans so expensive?
Chattel loans have higher rates because homes without land are considered personal property with higher default rates and depreciation risk. Getting on permanent foundation with owned land provides better financing options.
Can I get an FHA loan on a mobile home?
FHA Title II loans are available for manufactured homes on permanent foundations where you own the land. FHA Title I loans are available for homes on leased land but have higher rates and lower limits.
What credit score do I need?
Conventional manufactured home loans typically require 620+. FHA requires 580+ for 3.5% down. Chattel loans may accept lower scores but with higher rates.
Do I need to own the land?
Not necessarily, but it dramatically affects your options. Owning land opens conventional and government-backed mortgages. Leasing land limits you to chattel loans or FHA Title I.
How do I know if a manufactured home qualifies for financing?
Look for the HUD certification tag (red metal plate). The home must be on permanent foundation if seeking conventional/FHA/VA financing. Verify with potential lenders before making an offer.
Michael Chen
Certified Financial Planner, Mortgage Specialist
Our team of mortgage experts provides accurate, up-to-date information to help you make informed decisions about your home financing.
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