How to Get a Home Equity Loan or HELOC for a Mobile or Manufactured Home

If you own a mobile or manufactured home and have equity in it, you can take out a home equity loan or home equity line of credit (HELOC) to provide cash for renovations, paying off credit card or medical debt, making large purchases, and more. 

Not all lenders offer HELOCs or home equity loans for mobile homes and manufactured homes, but we found a few banks, credit unions, and other lenders that do. Here is what you need to know about home equity loan and HELOC eligibility requirements for mobile homes, potential lenders, and more.

Table of Contents

1. How to get a mobile home equity loan 
   1. Eligibility requirements
2. Types of loans 
3. Lenders that offer mobile and manufactured home equity loans
4. Alternatives
5. FAQ

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Tip

The terms mobile home and manufactured home are often used interchangeably. As you read through the information below, note that we primarily use the term mobile homes.

How to get a mobile home equity loan 

Before you apply for a mobile home equity loan, you’ll need to prepare with a few initial steps:

1. Check your credit score. Generally, you must have a credit score of at least 620 to qualify for a home equity loan.
2. Know your home’s current value. You’ll need to know what your mobile home’s current fair market value is to determine how much equity you have in your home. 
3. Calculate your equity. To calculate your mobile home equity, subtract what you owe on the mortgage or loan from the home’s market value. Based on the difference, the lender determines the credit limit for your home equity loan based on the home’s loan-to-value ratio.
4. Research lenders. If you have a mortgage on your mobile home, contact the bank to check whether it provides home equity loans on mobile homes. However, check with other banks and lenders who offer home equity loans for your manufactured home for interest rates and eligibility requirements. With a home equity loan, your mobile home serves as collateral.
5. Complete the application. Once you decide on a lender for your home equity loan, review approval requirements carefully and gather any documents you may need to complete the application. You’ll need to gather similar documents should you apply for a HELOC instead.

If you’d rather not take out a home equity loan, check with your mortgage bank or other lenders about applying for a HELOC. With a HELOC, your mobile home value and equity in the home determine eligibility and your credit line limit. With this type of home equity product, your mobile home also serves as collateral.

Understand mobile and manufactured home equity

Manufactured homes are constructed at a controlled facility and have a chassis and wheels for moving. The 1976 HUD code requires that all manufactured homes must be built on a permanent chassis that allows transport. 

Mobile or manufactured homes are typically moved in one or two large pieces from the manufacturer’s facility to their new location. Manufactured homes must be at least 320 square feet and adhere to the HUD standards for electrical, thermal protection to keep circuits from overheating, plumbing, fire safety and other safety requirements.

When you make mortgage or loan payments on a mobile home, you gradually build home equity. Lenders use your home equity amount and the loan-to-value ratio to determine your home equity loans amount or the credit limit for your HELOC. 

Eligibility requirements

Borrower and mobile home equity loan and HELOC eligibility requirements HELOCs vary, but generally include those listed in the table below.

Requirement	Details
Income	Varies by lender
Minimum credit score	620 or higher
Property	Constructed after June 15, 1976 to qualify as a HUD code manufactured home, with an attached chassis and wheels for transport; square footage requirements vary by lender
Land ownership status	You must own the land the mobile home stands on; The mobile home must be de-titled, meaning the mobile home is legally combined with the land where the home stands
Age and condition of the home	Varies by lender
Foundation	The home must be attached to a foundation on the land where it stands; homes in trailer courts are ineligible

Types of loans 

When deciding between a home equity loan or a HELOC on your mobile home, make sure you understand the differences between these two credit products based on your home’s equity.

Home equity loan

With a home equity loan, the borrower receives a lump sum of money to use for almost anything and repays the loan over the repayment term, which may be up to 20 years or more, depending on the loan amount, your credit, and other factors.

Home equity loans typically have a fixed interest rate and a fixed monthly payment. Because your home serves as collateral, you could lose your home to foreclosure if you miss payments or default on the loan. 

Home equity line of credit (HELOC)

A home equity line of credit (HELOC) is a revolving credit line, much like a credit card. Like a home equity loan, the credit limit on a HELOC is based on the amount of equity you have in your mobile home, your credit and other factors. HELOCs have a withdrawal (draw) period that can last up to 20 years and a repayment period that can range from five years to 30 years.

HELOCS may be available with a fixed or variable interest rate, but variable rates are more common. With a fixed rate, your monthly payments remain the same each month. With a variable rate, payment amounts can change depending on the current interest rate. Like home equity loans, HELOCs have their pros and cons. Your home serves as collateral for a HELOC, so if you fall behind on payments or default, you could lose your home to foreclosure.

What lenders offer mobile and manufactured home equity loans or HELOCs? 

Few lenders offer home equity loans or HELOCs on mobile homes, but we found a couple that do. Below, you’ll find details on a credit union and a bank that offers home equity loans or HELOCs on manufactured homes.

M&T Bank 

3.7 _/5

View Rates

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About M&T’s HELOC for mobile homes

M&T Bank offers the M&T CHOICEquity line of credit for manufactured homes. You’ll only pay interest on the amount of the credit line you use, and M&T charges no fees, including closing costs, application fees, or annual fees. 

M&T will allow you to lock in up to three fixed-rate loans on the line of credit, so your rate won’t fluctuate, and your monthly payment is predictable. But M&T CHOICEquity is only available in 13 states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Vermont, Virginia, Washington D.C., and West Virginia.

You must own the land, the dwelling must have a permanent foundation, and the living space must be at least 1,000 square feet. The home must also be finished and in livable condition.

Rates (APR)*	7.74% – 14.89%
Loan amounts	$15,000 – $100,000 (for manufactured homes)
Repayment terms	10-year draw / 20-year repayment
Max LTV	70.99% for manufactured homes

BCU Credit Union

View Rates

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About BCU’s home equity loan and HELOC for mobile homes

Built for members of the Baxter Healthcare employees, BCU Credit Union has expanded to offer banking and loan products to certain members. To qualify, you must meet one of the following requirements: 

• Be an employee of one of BCU’s major partners (Target, UnitedHealth, and GEICO are examples)
• Live in one of sixlocal communities BCU serves: Lake, McHenry, DuPage, Kan, or Cook counties in Illinois, or Kenosha County in Wisconsin
• Be a family member of a qualifying member

BCU offers both home equity loans and HELOCs on double-wide or larger manufactured homes, but few specific details are available. Here’s what we were able to confirm:

Rates (APR)*	Home equity loan (fixed): 9.625% – 10.125%; HELOC (variable): 10.75%
Min. credit score	650

Alternatives to mobile home equity loans 

Home equity agreement

A home equity agreement allows you to access a portion of your home’s equity in exchange for sharing a percentage of its future value. Unlike a loan, it doesn’t require monthly payments or interest, making it an appealing option for homeowners who want to avoid taking on additional debt.

Hometap offers home equity agreements that include eligibility for certain manufactured homes. This can be a practical choice for mobile homeowners looking for upfront cash without the obligations of a traditional loan, provided the home qualifies for Hometap’s program.

See our list of the best home equity agreements.

Cash-out refinance

A cash-out refinance allows you to replace your mortgage with a new loan that’s larger than what you owe, providing the difference in cash. This option can be ideal if you have a favorable mortgage rate or if you’re looking to consolidate debt. 

For mobile homeowners, eligibility depends on whether the manufactured home meets specific requirements, including being affixed to a permanent foundation and legally considered real property.

Read our recommendations for the best cash-out refinance companies.

Personal loan

Personal loans are unsecured, meaning you don’t need to use your home as collateral. This option can be more flexible than a home equity loan, though it may come with higher interest rates, especially if you have a lower credit score. 

Personal loans are often a good choice for those needing smaller amounts of cash quickly or for those whose manufactured home doesn’t meet eligibility requirements for equity-based loans.

See our list of the best personal loan lenders.

Retirement loan

If you have a retirement account, such as a 401(k), you may be able to borrow against it. A retirement loan can offer low-interest borrowing and doesn’t affect your home’s title. However, withdrawing funds from a retirement account can affect your long-term financial goals, and the amount you can borrow is limited. 

This option is worth considering for those comfortable using retirement savings to cover immediate expenses without tapping into home equity.

One of the biggest factors in considering a loan or line of credit (in any form) is: “Will your cash flow be able to support the additional payment required to service the additional loan?” Sometimes, when clients consider a HELOC, once we enter all the figures into financial planning software, I can show them that they cannot afford the HELOC—so put those improvement plans on hold! 

Borrowing from a 401(k) is always an option, but not without risks. You want to stay with that same company while paying back the loan—or risk having those loan proceeds hit your income as taxable income, which you then must pay taxes on.

Catherine Valega, CFP®

FAQ

Can you get a home equity loan for a mobile home?

Yes, but your options may be more limited than with traditional homes. Success often depends on land ownership, home foundation type, and the age and condition of your home.

Does it matter whether I own or rent the land my mobile home sits on?

Yes, significantly. Most lenders require you to own the land beneath your mobile home. Homes on rented lots or in mobile home parks typically have fewer financing options.

How old can my mobile home be to qualify?

Age requirements vary by lender, but many prefer homes built after 1976 when HUD standards were implemented. Newer homes typically have better approval odds.

Does my mobile home need to be on a permanent foundation?

Most lenders require mobile homes to be permanently affixed to a foundation that meets FHA requirements. This often includes removing wheels, axles, and hitches.

Do I need a double-wide to qualify?

While single-wide homes aren’t automatically disqualified, many lenders prefer double-wide or larger homes, which tend to hold their value better.

Recap of mobile home equity loans and HELOCs