What options exist for manufactured home financing today?

August 26, 2025
by Misin Buado
Categories Finance

If you’re exploring manufactured home financing, you’ll quickly find there isn’t a single “right” path—there are several, and the best fit depends on how your home is built, where it sits, and how it’s titled. Below is a clear, jargon-light guide to the most common options, what it takes to qualify, and how to compare them.

First, a quick primer: manufactured vs. modular vs. mobile

  • Manufactured homesare factory-built to the federal HUD Code (June 15, 1976, and later), transported to the site in one or more sections, and can be placed on a permanent foundation or on piers/blocks.
  • Modular homesare factory-built too, but to local/state building codes (not HUD). Once assembled on a permanent foundation, they’re typically financed like site-built homes.
  • “Mobile homes”usually refer to pre-1976 units not built to the HUD Code; financing is more limited.

Why this matters: lenders base eligibility and terms on the home’s classification and whether it’s personal property (like a vehicle) or real property attached to land.

Why financing can differ for manufactured homes

Two variables drive your choices:

  1. Land status
  • You own the landand the home is on a permanent foundation → you may qualify for a traditional mortgage.
  • You lease a lotin a manufactured home community (or plan to place the home on family land you don’t own) → options shift toward chattel (home-only) loans or specialized programs.
    1. Title and foundation
  • If titled as real propertyand permanently affixed (with the transport axles/hitch removed, foundation certified), more mortgage-type options open up.
  • If titled as personal property, you’ll typically look at chattel financing.

Conventional mortgages (when treated as real property)

When a HUD-code manufactured home is permanently affixed to land you own and titled as real estate, you may get conventional financing similar to a site-built home.

  • What to expect
  • Competitive fixed rates and longer terms (often 15–30 years).
  • Appraisal, income, and credit underwriting like any other mortgage.
  • Foundation and installation certifications, HUD data plates/serial numbers, and evidence the home has not been moved more than once may be required by some lenders/investors.
    • Enhanced programs
  • Some investors offer programs tailored to higher-quality manufactured homes (e.g., specific roof pitches, energy features, attached garages/porches). These can unlock more favorable terms when eligibility criteria are met.

Best for: Buyers who own (or are buying) land and want long-term amortization and lower monthly payments.

FHA loans (Title II and Title I)

The Federal Housing Administration (FHA) backs two flavors relevant to manufactured home financing:

  1. FHA Title II (real property)
  • For homes permanently affixed to land you own(or are buying with the home) and meeting HUD standards.
  • Typically offers lower down paymentsthan many conventional loans and flexible credit guidelines.
  • Requires FHA appraisal and foundation compliance.
    1. FHA Title I (personal property)
  • Designed for home-onlypurchases, including homes sited in leased-lot communities, and for certain home-plus-lot combinations where the land isn’t standard fee-simple.
  • Shorter terms and higher rates than mortgage-type loans are common, but it can be a lifeline when you don’t own the land.

Best for: Buyers needing flexible credit/down payment options; those in land-lease communities may consider Title I.

VA loans (for eligible service members and veterans)

If you’re eligible for a VA home loan, you may be able to finance a manufactured home and the land together, often with no down payment and no monthly mortgage insurance.

  • Typical requirements include permanent foundation, HUD compliance, and VA appraisal.
  • Availability varies among lenders; some do fewer manufactured VA loans, so it’s worth shopping.

Best for: Eligible veterans, service members, and some surviving spouses who want low-cost financing with strong consumer protections.

USDA loans (rural areas, income limits)

USDA Rural Development loans can finance eligible manufactured homes in designated rural areas, subject to income caps and property standards.

  • Often zero downwith competitive fixed rates.
  • Property must meet program and location criteria; not all lenders offer USDA loans for manufactured homes.

Best for: Moderate-income buyers purchasing in USDA-eligible rural zones who want low down payment options.

Chattel (home-only) loans

When the home remains personal property—for example, it’s placed in a land-lease community—chattel loans (sometimes called “home-only” loans) are common.

  • Pros:
  • Can finance homes in communities where you rent the lot.
  • Faster approvals and specialized underwriting for manufactured homes.
    • Cons:
  • Higher interest ratesand shorter terms (often 10–20 years) than mortgage-type loans.
  • Monthly payments can be higher; resale and refinance options may be more limited.
  • You’ll have lot rentin addition to your loan payment.

Best for: Buyers who don’t own land or want the flexibility of a land-lease community and can balance the total monthly cost.

In-house dealer financing and captive programs

Manufacturers and retailers sometimes partner with lenders to offer in-house financing, which can be either chattel or mortgage-type depending on the setup.

  • Convenient “one-stop” process.
  • Terms vary widely; compare the APR, total cost over the life of the loan, fees, and any prepayment penalties with outside options.

Best for: Buyers who value convenience but will still rate-shop to ensure they’re getting a fair deal.

Personal loans, HELOCs, and cash-out alternatives

  • Personal loanscan work for smaller balances or when timing is tight; expect shorter terms and higher rates, but minimal collateral requirements.
  • If you already own landwith equity, a home equity line of credit (HELOC) or a cash-out refinance of the land (then purchasing the manufactured home) can unlock lower rates—though you’re putting your real estate at risk if you default.
  • Some buyers combine savings + smaller loanto keep payments manageable.

Best for: Buyers with strong credit and/or existing equity who want flexibility or to move quickly.

How to choose: a quick decision guide

  1. Do you own the land or plan to?
  • Yes→ Look first at conventional, FHA Title II, VA (if eligible), or USDA (if rural-eligible).
  • No→ Consider FHA Title I, chattel loans, or dealer programs.
    1. Is the home permanently affixed and titled as real property (or can it be)?
  • Yes→ Mortgage-type options likely available.
  • No→ Expect personal property/chattel-style financing.
    1. What matters more: lowest monthly payment or total flexibility?
  • Lowest payment→ Longer-term mortgage programs usually win.
  • Flexibility/speed→ Chattel or personal loans may close faster but cost more over time.

Total cost matters more than rate

It’s tempting to focus only on interest rates, but the true cost of manufactured home financing includes:

  • Loan principal + interestover the entire term
  • Mortgage insurance(for some programs) or higher chattel rates
  • Lot rentif you lease land
  • Insurance(some communities and lenders require specific coverage)
  • Property taxes(for real property) or registration fees (for personal property)
  • Community fees(amenities, maintenance)
  • Foundation/installation upgradesif converting to real property

A 0.5% lower rate might be less impactful than shaving off a community fee or securing a longer amortization that fits your monthly budget.

Documentation and requirements you’ll likely face

  • HUD data plate and certification labels(to confirm HUD-code compliance).
  • Foundation certificationif financing as real property.
  • Appraisalusing appropriate comparable properties.
  • Title workshowing whether the home is personal or real property (and, if needed, title elimination or conversion to real property per your state’s process).
  • Income and asset verificationlike any mortgage: pay stubs, W-2s/1099s, bank statements, tax returns if self-employed.
  • Lease agreementif placed in a community (terms, rent, rules).

Pro tip: If you plan to convert your home to real property, talk to your lender before doing work so the upgrades (e.g., permanent foundation) meet the program’s standards.

Credit, down payment, and timelines

  • Credit scores:Minimums vary by program and lender; better credit usually means better pricing.
  • Down payment:Conventional and USDA/VA can be low or even zero (if eligible); FHA offers low down options; chattel loans often require a larger down payment.
  • Closing time:Mortgage-type loans can take longer because of appraisals, title work, and certifications; chattel loans can be faster but trade speed for cost.

Red flags to watch for

  • Prepayment penaltiesthat lock you in for years.
  • Teaser ratesthat adjust upward or fees that balloon the APR.
  • “As-is” foundation or installation claims—ensure they meet lender specs before you commit.
  • Homes moved multiple times—some lenders restrict financing in these cases.

Action plan: set yourself up for success

  1. Decide on land strategy(own vs. lease). This single choice dictates most of your manufactured home financing options.
  2. Collect your documents(ID, income, assets, HUD labels/photos, purchase contract, community lease if applicable).
  3. Get pre-qualifiedwith two to three lenders that actively finance manufactured homes—ask specifically which programs they do (conventional, FHA Title I/II, VA, USDA, chattel).
  4. Compare the APR and total cost, not just the note rate. Run scenarios at different down payments and terms.
  5. Confirm foundation/title path If you need a permanent foundation or a title conversion, schedule it so it doesn’t delay closing.
  6. Review community rules and costs(if leasing a lot): lease length, rent increases, utilities, and amenity fees.

The bottom line

Manufactured home financing isn’t one-size-fits-all, but that’s good news—it means you can match your loan to your goals. If you own (or plan to buy) the land and can install on a permanent foundation, mortgage-style programs (conventional, FHA Title II, VA, USDA) often deliver the lowest long-term cost. If you’re placing a home in a community or need a faster path, chattel loans or FHA Title I can make the purchase possible—just budget for higher rates and lot rent. Whichever route you choose, shop multiple lenders, verify foundation and title requirements upfront, and compare the full lifetime cost of the loan. With a bit of preparation, you can land financing that fits your budget and the way you want to live.