Everything You Should Know About Mobile Home Financing

Whether you want to purchase a new mobile home or refinance an existing one, you need to consider all your financing options. This post will cover all the information you require to obtain the best loan possible for your circumstances.

Several types of loans include chattel loans, personal loans, and USDA mortgages. Learn more about these options below and contact a Total Mortgage loan expert to discuss your loan options.

What is a Mobile Home?

A mobile home, or manufactured home, is a prefabricated house built in a factory. They are typically single-sect, double-sect, or triple-sections and range from under 1,000 square feet to over 2,000 square feet.

Initially, mobile homes looked much like campers or trailers with exposed trailer couplers and wheels that allowed them to be towed by a truck or other vehicle. But as new construction standards began to be implemented, mobile home design and materials changed.

Modern manufactured homes are much better constructed and designed than before 1976. They’re made with high-quality materials in climate-controlled building facilities and are built to federal standards.

These standards were implemented to protect people from natural disasters, ensure they were safe from fire, and ensure they were energy efficient. Manufactured homes have various styles and designs, including modern, contemporary, rustic, traditional, and more.

Types of Financing

You can get financing for a mobile home in many ways. There are mortgages and loans backed by USDA single-family housing loans, VA manufactured home loans, and personal loans.

First-time home purchasers prefer loans backed by the Federal Housing Administration because they have flexible credit, down payment, and debt-to-income requirements. They also have lower interest rates and shorter terms than conventional home loans.

Another way to finance a mobile home is through a chattel loan, similar to a mortgage, except it’s meant for high-priced personal property. It’s common for borrowers to take out a chattel loan when buying a mobile home in a manufactured home community where the borrower doesn’t own the land.

Finally, the MH Advantage program offers mortgages for manufactured homes for sale that meet specific criteria, including being titled as real estate. These loans are available with down payments as low as 3% and have 30-year terms.

Down Payments

One of the most important things to consider when you’re thinking about financing a mobile home is down payments. These can vary significantly from lender to lender, and it’s a good idea to find a mortgage lender that offers flexible down payment requirements for you.

Remember that mobile homes are frequently categorized differently than regular real estate. They may be taxed as personal property, and many lenders don’t classify them as real estate.

The good news is that you can qualify for a mobile home loan with no down payment or even low down payments. It all depends on your credit score, income, and other factors.

Although most lenders have a minimum credit score requirement of 580, you can receive better terms and lower pricing with a higher score. Additionally, you might be eligible for an FHA or VA loan, which frequently has less rigid down payment requirements than conventional loans.


If you’re looking to finance a mobile home, many lenders are available to help. These lenders may offer low or no down payment options for qualified borrowers.

Some of these loans may require a down payment as low as 3 percent, and they have flexible credit requirements and loan limits. Some of these loans also allow borrowers to make biweekly payments, which can help borrowers budget better and pay off their loans faster.

The kind of manufactured house you purchase and other elements will influence your mortgage choice. Some lenders specialize in financing a manufactured homes, and many offer conventional mortgages for these homes.

These loans differ in interest rates and lengths, so shopping for the best rate and loan term is essential. Finding a lender who watches out for your financial interests is also brilliant, particularly if you have poor credit or a low salary.

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