Manufactured Home Loans
A manufactured home loan is a type of mortgage specifically designed for purchasing or refinancing a manufactured home—which is a home built in a factory and transported to its site, often placed on a permanent or semi-permanent foundation.
What Is a Manufactured Home?
- Built off-site in a factory and transported to the land.
- Must meet the HUD building code standards (not to be confused with “modular” homes, which are treated more like site-built homes).
- Commonly referred to as “mobile homes,” especially those built before 1976.
Types of Manufactured Home Loans:
FHA Loans (Title I or Title II)
- Backed by the Federal Housing Administration.
- Can be used for homes with or without land.
- Lower credit requirements.
VA Loans
- For eligible veterans.
- Zero down payment if home is on owned land and meets VA standards.
USDA Loans
- For rural areas.
- Can be used for new manufactured homes on permanent foundations.
Conventional Loans (e.g., Fannie Mae, Freddie Mac)
- Available if the manufactured home is on a permanent foundation and classified as real property (not personal property).
- Requires higher credit and down payment.
Chattel Loans
- Used when the home is not attached to land (like in mobile home parks).
- Treated more like a personal property loan.
- Higher interest rates and shorter terms.
Eligibility Requirements Vary, But Usually Include:
- Home must be built after June 15, 1976.
- Home must be on a permanent foundation for most traditional mortgages.
- Must meet local zoning and HUD guidelines.
- You may need to own your own land or have a long-term lease.
