Manufactured Home Financing

What is a mobile home loan?

Any sort of financial package you can get that enables you to buy a mobile home qualifies as a mobile home loan. Most commonly people take out a personal loan or a chattel loan for this purpose, but there are other sources you can look into.

Best Mobile Home Personal Loans

Marcus lends amounts up to $40,000 for 3-6 years

Marcus by Goldman Sachs

✔ Funding: Borrow $3,500 - $40,000
✔ Minimum Credit Score: 660
✔ APR: 6.99-19.99%
✔ Loan term: 3 - 6 years
✔ Funding turnaround: typically within one week

Marcus offers loans that are best for debt consolidation and has attractive customizable loan repayment options. While funding may take up to a week, there are no hidden fees and you may obtain competitive interest rates.

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Avant has loans to a maximum of $35,000 for terms of 2-5 years

Avant

✔ Funding: Borrow $2,000 - $35,000
✔ Minimum Credit Score: 550
✔ APR: 9.95 - 35.95%
✔ Loan term: 2 - 5 years
✔ Funding turnaround: within 24 hours in most cases

With Avant personal loans, borrowers with fair to good credit scores can get access to super fast funding up to $35K. Best for debt consolidation.

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SoFi offers up to $100,000 for between 2-7 years

SoFi

✔ Funding: Borrow $5,000 - $100,000
✔ Minimum Credit Score: 680
✔ APR: 4.99% to 19.53%
✔ Loan term: 2 - 7 years
✔ Funding turnaround: 1 - 3 business days

With SoFi personal loans, borrowers can get access to up to $100,000 with APR starting as low as 4.99% with extra bonus perks ($500 for each funded loan) and fast turnaround time. 24/7 customer support available.

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LightStream also has loans of a maximum of $100,000 for 2-7 years

LightStream

✔ Funding: Borrow $5,000 - $100,000
✔ Minimum Credit Score: 660
✔ APR: 2.49% - 19.99%
✔ Loan term: 2 - 7 years
✔ Funding turnaround: as soon as same business day

LightStream offers up to $100k personal loans as soon as same business day without origination fees and easy to use mobile app.

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Can you get a loan for a mobile home on rented land?

It is certainly possible to borrow money to buy a mobile home that’s on rented land and most mobile home occupants don’t own the land their home is on. But if you own the land, or are looking to buy land along with the mobile home, you will find more borrowing opportunities.

How can I finance a manufactured home?

FHA loans

Overseen by the U.S. Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA) has two loan programs that are of interest to mobile home and manufactured home buyers:

• Title I loans cater for both those looking to purchase either a home on its own or a home plus the lot. If the lot isn’t being purchased the borrower must have a minimum three-year signed lease. Maximum amounts are $69,678 for a home and $23,226 for the land with repayments spread over up to 20 years (15 if just the lot is being purchased).
• Title II loans are purely for people who want to acquire both a mobile home and the land as a package. It is only for buyers who are going to use the home as their primary residence and for homes that are built on a permanent chassis – not for mobile homes.

The FHA doesn’t lend the money itself, rather it guarantees the loan for approved lenders. FHA loans are designed for those with less than perfect credit and offer many the best chance of securing finance for a home.

Fannie Mae Mortgages

The Federal National Mortgage Association, commonly known as Fannie Mae, was set up by the government in 1938 to help with the housing crisis and it is still doing so today, making mortgages available to low and middle-income borrowers. They carry low interest rates, terms of up to 30 years, and may only require a 3% down payment.

Freddie Mac Mortgages

Freddie Mac mortgages are very similar to those provided through Fannie Mae and are also designed to help those who would struggle to secure a home loan from traditional mortgage providers.

VA loans

The Department of Veteran Affairs insures loans for those that have a military background for the purchase of manufactured homes and lots, sometimes with no down payment required. VA loans are characterized by their generous terms.

Chattel Loans

Chattel loans are specifically for the purchase of expensive, moveable property, including mobile homes. The item itself acts as collateral for the loan but that means if you default your home can be seized. Chattel loans tend to have shorter terms and slightly higher interest rates than traditional mortgages.

Personal Loans

Personal loans can be used for anything including buying a mobile or manufactured home. Although interest rates are higher than most mortgages charge, the upsides are that a personal loan is easy to organize, there are fewer fees, and if you experience repayment issues your home is not at risk.

Why won’t banks finance manufactured homes?

Many banks consider manufactured homes as property and not real estate, particularly if the ground they are on is rented. As such, manufactured homes are not as likely to appreciate as conventional houses and may deteriorate quickly if not cared for.

How long can you finance a mobile home for?

Terms vary depending upon the sort of finance you choose. A personal loan is likely to last from two to five years whereas many mortgages are repaid over 20 or more years.

Is it hard to get a loan for a manufactured home?

It is not hard to get a loan for a manufactured home but it is more difficult than finding a mortgage for a conventional home. When seeking finance for a manufactured home you often need to look for specialist mortgage companies and lenders.