Mobile Home Loan Options: How to Finance a Mobile or Manufactured Home

Yes, you can get a mortgage on a mobile, modular or manufactured home. The loan type you qualify for depends on when the home was built, whether it sits on a permanent foundation and whether you own the land beneath it.

Here is exactly how financing works for each type of factory-built home.

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What Is the Difference Between a Mobile Home, Manufactured Home and Modular Home?

These three terms are often used interchangeably, but they describe different types of homes with different financing rules.

Mobile Homes

A mobile home is a factory-built structure constructed before June 15, 1976. That date matters because it is when the Department of Housing and Urban Development (HUD) introduced federal construction and safety standards. Homes built before that date are classified as mobile homes, and financing options are more limited as a result.

Manufactured Homes

A manufactured home is built in a factory after June 15, 1976 and must meet HUD standards for construction, safety, durability and energy efficiency. These homes are transported to a site in sections and can be placed on a permanent foundation. Most modern financing programs, including FHA, VA and USDA loans, are available for manufactured homes that meet specific criteria.

Modular Homes

A modular home is also factory-built in sections, but it must comply with the same local building codes as a traditionally built home. Once assembled on-site, a modular home is legally treated the same as a site-built house. That means standard conventional financing applies with no special restrictions.

What Loan Options Are Available for a Manufactured or Mobile Home?

Not sure which loan type fits your situation? Start with our guide to different types of home loans for home buyers for a full overview before diving into the programs below.

Conventional Loan

Conventional financing is available for manufactured homes that are permanently attached to land and classified as real property. Freddie Mac and Fannie Mae both offer specialized programs.

Freddie Mac MH Advantage: Available for manufactured homes at least 12 feet wide with a minimum of 600 square feet of living space. The home cannot sit on leased land. Terms up to 30 years are available with low down payment options. Learn more about Freddie Mac’s Home Possible program.

Standard Freddie Mac Conventional: Similar requirements apply. The home must be on a permanent chassis, classified as real property and have at least 400 square feet of living space. Fannie Mae offers a comparable option through the Fannie Mae HomeReady loan.

FHA Loan

FHA loans are a common path for manufactured home buyers because of lower credit score and down payment requirements. Two options exist under the FHA program.

FHA Title I: Covers the purchase of a manufactured home without the land. The home must be your primary residence, meet FHA guidelines and connect to utilities. Terms run up to 20 years.

FHA Title II: Covers the home and the land together. The home must have been built after 1976, must be classified as real property and cannot be located in a mobile home park or on leased land.

There is also an FHA 100% financing option through Direct Mortgage Loans that combines a first and second mortgage to cover the full purchase price with no down payment required. The second mortgage can cover up to 3.5% of the sales price or appraised value, whichever is less, over a 10-year term. To qualify, you need a minimum credit score of 620 and a maximum DTI of 45%. A Homebuyer Education course is also required.

Not sure whether FHA or conventional is the right fit? Read our breakdown of FHA vs. conventional loans.

VA Loan

VA loans are available to veterans and qualifying active-duty service members for manufactured homes that sit on a permanent foundation, comply with HUD guidelines and include the land in the purchase. Up to 100% financing may be available for eligible borrowers with no mortgage insurance required. Review the full breakdown of VA loan benefits and eligibility.

USDA Loan

The USDA loan Manufactured Housing Pilot Program extends financing to existing manufactured homes built on or after January 1, 2006 in eligible rural areas. If the home and location qualify, no down payment may be required. See how USDA compares to FHA in our USDA vs. FHA loan guide.

What Are the Requirements to Finance a Manufactured Home?

Most lenders require the following for a manufactured home to qualify for financing:

• The home must have been built after June 15, 1976 (HUD code compliance)
• The home must be permanently affixed to a foundation
• The home must be classified as real property, not personal property
• You must own or be purchasing the land beneath the home
• The home cannot be located in a mobile home park with leased land (for most programs)
• The home must meet minimum size requirements depending on the loan type

The most important factor is real property classification. If the manufactured home is still titled as personal property (like a vehicle), it typically must be converted to real property before most mortgage programs will apply.

Your credit profile and down payment also influence which programs you qualify for. Review what credit score is needed to buy a house and what is a down payment on a house to understand where you stand before applying. The mortgage qualification guide covers income, DTI and asset requirements in full detail.

Can You Refinance a Manufactured Home?

Yes, refinancing a manufactured home is possible, but the same requirements apply. You need to own the land it sits on, the home must be on a permanent foundation and it must be classified as real property. Closing costs will apply, including a new appraisal and title search. In some cases those fees can be financed into the loan.

Whether refinancing makes sense depends on your current rate, how long you plan to stay in the home and what programs you qualify for. Start with our guide on when you should refinance your mortgage and explore the full refinance overview to understand your options. A Direct Mortgage Loans loan officer can walk you through the numbers specific to your situation.

Pros and Cons of Buying a Manufactured or Mobile Home

Reasons buyers choose factory-built homes:

• Lower purchase price compared to traditional site-built homes
• Faster construction timeline, which can mean a quicker move-in
• HUD construction and safety standards ensure consistent quality
• Strong energy efficiency due to modern insulation and appliances
• Lower maintenance requirements relative to older traditional homes

Considerations to weigh:

• Manufactured homes can depreciate in value, particularly when classified as personal property
• Financing can be more limited and rates may be slightly higher than traditional home loans
• Local zoning laws may restrict where manufactured homes can be placed
• Community park fees apply if the home sits in a manufactured housing community
• Resale can be more challenging, particularly in a manufactured home park setting

Frequently Asked Questions

Can I get a mortgage on a mobile home?

It depends on when it was built. Homes built before June 15, 1976 are classified as mobile homes and have limited financing options because they predate HUD standards. Homes built after that date are classified as manufactured homes and are eligible for FHA, VA, USDA and conventional mortgage programs if they meet specific requirements.

Do I need to own the land to finance a manufactured home?

For most mortgage programs, yes. FHA Title I is one exception, allowing financing for the home without the land. However, for conventional, VA and USDA loans, you generally need to own or be purchasing the land as part of the transaction. Review what is a down payment on a house to understand how land ownership factors into your upfront costs.

What credit score do I need for a manufactured home loan?

Requirements vary by loan program. FHA loans through Direct Mortgage Loans require a minimum credit score of 620. VA and USDA loans have their own guidelines. Review what credit score is needed to buy a house for a full breakdown, or speak with a loan officer who can evaluate your full profile.

What is the difference between a manufactured home and a modular home for financing purposes?

A modular home is treated the same as a traditionally built home for financing purposes. It must meet local building codes, and standard conventional loans apply with no special restrictions. A manufactured home must meet HUD standards and has additional financing requirements related to foundation, land ownership and real property classification.

Can a manufactured home appreciate in value?

It can, particularly when the home is classified as real property, permanently affixed to a foundation and located on land you own. Homes in manufactured housing parks that remain personal property tend to depreciate. The classification and location are the biggest factors.

What is the fastest way to find out what manufactured home loan I qualify for?

The fastest path is to get pre-approved. Review what documents you need for mortgage pre-approval so you are ready, then apply now and a Direct Mortgage Loans loan officer will review your credit, income and the property details to identify exactly which programs apply to your situation.

Your Next Step

Financing a manufactured or mobile home has more options than most buyers expect. The right program depends on the home, the land and your financial profile.

Get pre-approved and a Direct Mortgage Loans loan officer will review your full scenario and walk you through every option available to you. You can also apply now and expect a call within 24 hours.