Mobile Home Loan FAQ's

Answers to financing questions for manufactured homes with land .

If you're in the process of buying or refinancing a mobile home, our comprehensive list of answers to frequent questions is a great resource. Getting quality financing on a manufactured home with land is still possible -- and you can still get very reasonable rates of interest! Please note, all questions and answers related to manufactured home financing assume that you are dealing with a qualified home tied to land. Please review the HUD guidelines on manufactured home loans by clicking here.

Is financing still available for single wide mobile homes?
How do I get a low interest rate when financing a mobile home?
How hard is it to finance a manufactured home?
What are the credit qualifying requirements for financing a mobile home?
What are the downpayment requirements for a mobile home loan?
What should I consider when taking out a mobile home loan?
Can I finance a used manufactured home?
What types of manufactured homes can I finance?
What loan terms are available for financing a mobile home?
Will I have to occupy the manufactured home to qualify for a loan?
Should I consider getting a mobile home loan through the factory or dealer?
Will I be required to have an appraisal done with my manufactured home loan?
Is a survey required with my mobile home loan?
How long does it normally take to get a mobile home loan done?
Can I refinance my current mobile home loan if my interest rate is too high?
How hard is it to refinance a mobile home?
Can I take cash out when refinancing my mobile home loan?
Can I use my land as a down payment?

Is financing still available for single wide mobile homes?
HUD guidelines allow for the financing and refinancing of qualified single wide manufactured homes with land. However, availability of financing for single wide mobile homes is subject to the lenders and the secondary mortgage backed securities market. Investors in mortgage backed securities have to be willing to buy this paper in order for financing to be available through mortgage lenders.

How do I get a low interest rate when financing a mobile home?
In order to maximize your opportunity for a low interest rate mobile home, you want to ensure first that the home is tied to land as required by HUD guidelines. (See our mobile home loan section). Secondly, you will want to finance your home using an FHA loan program. While manufactured home financing is available via conventional loan programs, the down payment/LTV requirements can be beyond the reach of most homeowners and home buyers. In addition, the rates that are typically offered are about 1.5% to 2% higher than those attained using an FHA loan product.

How hard is it to finance a manufactured home?
Financing a manufactured home is a bit harder today than it was 5 years ago. A lot of this has to do with the mortgage crisis that occurred, along with the fact that mobile homes, overall, have a much higher probability of default that a traditional stick-built home. Regardless, financing is still available. The only thing that has really changed is that qualifying has become more strict and the downpayment requirements have risen.

What are the credit qualifying requirements for financing a mobile home?
In general, you should have good to excellent credit, no unpaid collections or judgments, no student loan defaults or tax liens, and you should have sufficient income to meet the proposed mortgage. If you have credit issues, we suggest you contact and retain the services of a qualified, credible credit repair company prior to purchasing or refinancing a home. You are free to inquire, and naturally, our origination team will be more than happy to review your situation and give you the direction you need to accomplish your goals.

What are the downpayment requirements for a mobile home loan?
Downpayment requirements when purchasing a manufactured home with land begin at 3.5% for the FHA Loan program and can be as high as 20% through conventional lending channels.

What should I consider when taking out a mobile home loan?
The most important thing to consider when taking out a mobile home loan is the age of the home. Manufactured homes have a set life span -- if you buy one that is too old, you will have higher repair costs from the outset to maintain the home than you will when purchasing a new one. In addition, you should consider your interest rate and your monthly payment. It really is about affordability; you don't want to over-extend yourself when buying a home.

Can I finance a used manufactured home?
Absolutely. Financing is available for both qualified used mobile homes and new manufactured homes alike. Both are treated the same in terms of your interest rate and how long you can finance the loan.

What types of manufactured homes can I finance?
While subject to secondary market availability, you can typically finance single wide manufactured homes and land as of this writing. In addition, financing is available for both double wide mobile homes and triple wide manufactured homes with land.

What loan terms are available for financing a mobile home?
When financing a manufactured home, you can typically attain terms of 30 years, 20 years, and 15 years. Please note that repayment terms are subject to market availability.

Will I have to occupy the manufactured home to qualify for a loan?
Yes. Presently, this site does not provide for financing of non-owner occupied manufactured homes (investment homes). You can, however, attain financing on mobile homes that will be second homes and/or cosign for family members to purchase a manufactured home with land.

Should I consider getting a mobile home loan through the factory or dealer?
We don't recommend it. As with anything, having a third party to review documents and contracts acts as a buffer to protect you against fraud and unethical practices. We have seen dealers add in thousands in junk fees that borrowers had no idea they were being charged. Having a mortgage originator review the document from the manufacturer or dealer will ensure you are getting unbiased counsel through the loan process.

Will I be required to have an appraisal done with my manufactured home loan?
Yes. Financing a mobile home with land is treated no differently than financing a traditional stick-built home. The value of the manufactured home and land must still appraise out and meet or exceed the purchase price.

Is a survey required with my mobile home loan?
Yes, a survey will be required.

How long does it normally take to get a mobile home loan done?
Closing a manufactured home loan will typically take the same amount of time as a traditional mortgage loan. Expect around 30 days to 60 days, depending upon the complexity of the loan.

Can I refinance my current mobile home loan if my interest rate is too high?
Absolutely! If your rate is fixed, but too high, or adjustable and resetting, now is the time to act.

How hard is it to refinance a mobile home?
Refinancing a manufactured home with land is no more difficult than refinancing a traditional stick-built home. The same issues come into play: loan-to-value, type of loan you're refinancing out of, income/debt ratios, credit quality, and other miscellaneous factors.

Can I take cash-out when refinancing my mobile home loan?
Absolutely. For most borrowers, cash-out (up to 85% LTV) is available when refinancing your present manufactured home loan.

Can I use my land as a down payment?
Yes, if you own your own land and are buying a manufactured home, any equity in your land can be used to meet your down payment requirements. In this scenario, you will want to be very careful when dealing with a dealer or manufacturer. The paperwork on this scenario can get very confusing and we've seen a manufacturer's in-house financing team attempt to do some very unethical things -- like taking a purchase price of a double wide mobile home of 96K and the borrower's GFE paperwork showing financing of 116K. The manufacturer's in-house financing team was, in effect, trying to charge an additional 12K-plus in profit. We strongly recommend you use a third party, independent firm to finance your manufactured home.