Manufactured Home Loans & Mobile Home Financing

Whether you’re purchasing a new manufactured home or refinancing an existing one, knowing how mobile home loans work can help you confidently navigate the process. Let’s break down what manufactured and mobile homes are and the challenges of securing financing.

What Is a Manufactured Home?

A manufactured home is a prefabricated home built in a factory and transported to its final destination. Unlike traditional site-built homes, manufactured homes are constructed according to the U.S. Department of Housing and Urban Development (HUD) Code, ensuring safety and design standards are met. These homes are typically placed on either leased land or a permanent foundation, which can impact financing options.

What Is a Mobile Home?

A mobile home is similar to a manufactured home but refers specifically to homes built before June 15, 1976, when HUD introduced stricter building standards. Older mobile homes may not meet current safety and durability regulations, making them harder to finance. While mobile and manufactured homes are built off-site and transported to their locations, lenders often treat them differently regarding loan eligibility.

Challenges of Getting a Mortgage for a Manufactured Home

Securing a mortgage for a manufactured or mobile home can be more difficult than for a traditional home. Here are some key challenges:

• Higher perceived risk for lenders: Manufactured and mobile homes are often seen as riskier investments, resulting in higher interest rates or stricter lending criteria.
• Slower or lower appreciation in value: Unlike traditional homes, these properties don’t always increase in value over time, making them less attractive to lenders.
• Land ownership complications: Many manufactured homes are placed on rented land, making financing more challenging. Some mobile home lenders only offer loans if the home is permanently affixed to land the borrower owns.
• Perceptions of lower construction quality: While modern manufactured homes are built to strict standards, they are sometimes viewed as lower quality than site-built homes, impacting loan availability.

Because of these factors, getting a mortgage pre-approval for a manufactured or mobile home can require more effort. Lenders may have specific loan programs or require additional documentation to assess the property’s value and eligibility. Understanding these challenges can help you prepare for a smoother financing process.

Mobile Home Financing Options

Financing a mobile or manufactured home comes with unique challenges, but several manufactured home financing options are available to help buyers secure funding. The right loan depends on factors like credit score, land ownership, and whether the home meets certain building standards. Below, we’ll explore some of the most common loan programs for mobile and manufactured homes, including government-backed and conventional options.

FHA Loan

The Federal Housing Administration (FHA) offers two loan programs for manufactured and mobile homes:

• Title I Loans: Designed for buyers who want to finance just the home itself or a home and land together. These loans are available even if the home is placed on leased land, such as in a mobile home park.
• Title II Loans: These require the home to be permanently affixed to land the borrower owns, making them more like traditional mortgages. Title II loans generally offer better interest rates and terms but have stricter requirements.

FHA loans are popular because they offer lower down payments and more flexible credit requirements, making them a good option for first-time buyers.

VA Loan

Veterans and active-duty service members may qualify for a VA-backed loan to finance a manufactured or mobile home. VA loans for mobile homes usually require no down payment and offer competitive interest rates, but they come with specific requirements:

• The home must be considered real property, meaning it is permanently affixed to land.
• Borrowers must meet VA eligibility requirements and use the home as their primary residence.

While VA loans can be a great option, finding a lender willing to finance a manufactured home with a VA loan may take some extra research.

Conventional Loan

Securing a conventional mortgage for a manufactured or mobile home can be difficult, as many lenders consider these properties higher risk. However, Fannie Mae’s MH Advantage® program offers financing for certain manufactured homes that meet specific design and construction standards.

To qualify for Fannie Mae’s MH loans, the home must:

• Be built on a permanent foundation and classified as real property.
• Have features similar to site-built homes, such as higher-pitched roofs and energy-efficient designs.
• Be located on land owned by the borrower.

For buyers who can meet these criteria, an MH Advantage loan may offer more favorable terms than other financing options.

Non-QM Loan

A non-qualified mortgage (non-QM) loan is an alternative financing option for buyers who don’t meet traditional loan requirements. These loans are typically used by borrowers with non-traditional income sources, lower credit scores, or unique financial situations.

For manufactured or mobile homes, non-QM loans can provide:

• More flexible income and credit requirements.
• Options for financing homes on leased land.
• Potential for higher loan amounts compared to government-backed options.

However, non-QM loans often come with higher interest rates and larger down payment requirements, so they may not be the best fit for every borrower.

Work With a Qualified Mobile Home Lender

Financing a manufactured or mobile home can be complex, but working with the right lender makes all the difference. Griffin Funding specializes in loans for these types of homes, offering flexible options tailored to your needs. Whether you’re looking for an FHA, VA, conventional, or Non-QM loan, Griffin Funding can help you navigate the process and secure competitive rates.

Plus, managing your mortgage has never been easier with the Griffin Gold app, which lets you track your loan, make payments, and stay on top of your finances—all from your phone. Start with Griffin Funding today and take the first step toward financing your manufactured or mobile home with confidence.