Mobile Home Loans: How to Finance Your Mobile or Manufactured Home

A mobile home or manufactured home can be an affordable alternative to purchasing a traditional property, but financing can be more challenging because lenders may impose stricter requirements for mobile home loans. 

Depending on the type of home and your situation, it’s possible to qualify for conventional mortgages, government-backed loans, or even personal loans. Keep reading; we’ll explain how mobile home financing works and where to find the right loan option. 

2 lenders that offer mobile home loans 

Lender	Loan amounts	Rates (APR)
LightStream	$5,000 – $100,000	7.49% – 25.49%
Upgrade	$1,000 – $50,000	8.49% – 35.99%

Getting a mortgage for a mobile home can be difficult because lenders may not view them through the same lens as a traditional home. The primary concerns for lenders revolve around: 

• The type of property you’re buying (i.e., mobile home, manufactured home, or modular home)
• The property’s age
• Its estimated value and the amount you want to borrow
• How much the home is expected to depreciate or appreciate during the loan term
• Whether the home will sit on a permanent foundation
• Whether the home is located on land used as collateral for the loan

Credit scores can play a part. Lenders prefer to offer mortgages to homebuyers who are most likely to repay the loan. A good credit score—at least 670 on the FICO scoring model—could make it easier to qualify if you find a lender that offers mobile home mortgage loans. Having a higher score could also help you lock in a lower interest rate. 

We’ve researched two top lenders that offer loans to buy mobile or manufactured homes. Below, you’ll find details on the types of financing available, the interest rates you can expect to pay, and who each loan might be right for. 

LightStream – Best for excellent credit

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LendEDU rating: 4.8 out of 5

• Specializes in loans for a wide range of amounts.
• Does not require equity in your current home or a down payment.
• Doesn’t allow prequalification with a soft credit check.

LightStream caters to a broad spectrum of financial needs. Whether the intention is to purchase a modest mobile home or invest in a high-end manufactured residence, LightStream accommodates loan amounts across a wide range, making it a versatile choice for prospective buyers. 

One of the hallmark features of LightStream’s financing options is its competitive interest rates, particularly for applicants with FICO credit scores of 740 and up. By prioritizing affordability, LightStream positions itself as an attractive option for borrowers seeking to minimize the cost of their loans.

LightStream provides significant financial flexibility, which is beneficial for buyers who may not have substantial savings or prefer to invest their money elsewhere. LightStream’s ability to offer such favorable terms underscores its dedication to accommodating the financial circumstances of a wide range of buyers.

Upgrade – Best for fair credit

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LendEDU rating: 4.9 out of 5

• Tailored loans for individuals with fair or better credit.
• Allows applications with a cosigner.
• Provides quick funding and flexible repayment options.

Upgrade is a strong option for borrowers with FICO credit scores in the range of 580 to 669 who want to finance a mobile or manufactured home. Its inclusive approach, allowing for cosigners, and commitment to fast service and repayment flexibility make it a practical choice. 

Similar to LightStream, you won’t need a down payment or home equity to get a personal loan from Upgrade. This lender’s approach broadens the accessibility of mobile home financing to a wider audience, especially for those who might not qualify on their own but can leverage the creditworthiness of a cosigner.

How the type of home affects your manufactured home financing 

The terms mobile home, manufactured home, and modular home are often used interchangeably, but their meanings differ. 

The type of home you’re interested in buying can influence which borrowing option you choose. Here’s an overview of how they compare. 

Home type + Best financing	Example
Mobile home – Personal loan
Manufactured home – FHA loan
Modular home – Conventional mortgage

Mobile home

A mobile home is a factory-built home constructed before June 15, 1976. That date marks when the U.S. Department of Housing and Urban Development (HUD) introduced the National Manufactured Housing Construction and Safety Standard Act to implement new building codes for mobile homes. 

Mobile homes are fully constructed and often sit on a metal frame above the ground. They don’t have a traditional crawlspace, but the space under the home may be enclosed using underpinning. 

A mobile home is often secured with tie-downs rather than having a fixed, permanent foundation. This allows it to be moved to a new location. Personal loans are often the best funding option for mobile homes.

Manufactured home

HUD applies the label of manufactured home to structures built after June 15, 1976, in compliance with the Federal Manufactured Home Construction and Safety Standards. Manufactured homes aren’t intended to be moved from one location to another and may sit on permanent foundations. 

Along with other conditions, a permanent foundation is required for a manufactured home to be covered by FHA insurance. Manufactured homes may be categorized as single-wide, double-wide, or triple-wide, depending on their dimensions. FHA loans tend to be the best option for manufactured homes.

Modular home

Manufactured homes are constructed according to standards established in the HUD code. Modular homes, on the other hand, are treated the same as stick-built homes, meaning they’re constructed according to state, local, or regional building codes. 

A modular home often sits on a permanent foundation with a crawlspace. It gets its name because it’s constructed by fitting multiple pieces or modules together. Homebuyers may have more flexibility in customizing a modular home, and the construction time may be shorter. A conventional mortgage could be the best option to finance a modular home.

Types of manufactured home loans  

Several types of loans, beyond conventional mortgages or government-backed loans, are available to finance mobile or manufactured homes. 

Comparing each loan option can help you determine which might be best for your home purchase. 

Loan type	Best for
Personal loan	Older mobile homes or smaller home purchases
Tiny home loan	Smaller modular homes with a permanent foundation
Seller or mfr. financing	Borrowers who don’t qualify for traditional mortgage loans
RV loan	Mobile homes not on a permanent foundation
Chattel loan	Borrowers OK with a shorter loan term

Personal loan

Personal loans allow you to borrow a lump sum and repay it over time with interest. They don’t have the same restrictions as traditional mortgage loans, which can allow for more flexibility. The upper limit for personal loans is often $50,000 to $100,000. 

A personal loan doesn’t require a down payment, but the lender may charge an upfront origination fee. You won’t need private mortgage insurance either. 

Tiny home loans

You can use tiny home financing to purchase smaller mobile homes or modular homes. Depending on the lender, the home may need to meet size requirements and have a permanent foundation. 

Whether tiny home financing is appropriate can depend on those factors, as well as the home’s purchase price. If the lender has a minimum loan threshold, for instance, and the mobile home you want to buy is below that amount, you may need to look elsewhere for financing. 

Seller or manufacturer financing

Seller financing allows you to pay for a home purchase in installments without going through a bank. In this financing arrangement, the seller acts as the mortgage lender and allows you to make payments over time.

Manufacturer housing allows you to borrow from the company that built the home.

Either type of loan may be attractive if you’ve been unable to qualify for other types of mobile home financing due to poor credit or because the property doesn’t meet a traditional lender’s standards.

RV loans

You may be able to use an RV loan—a type of vehicle loan—to finance a mobile home that is not on a permanent foundation and can be moved. To qualify, the home must meet Department of Transportation safety standards. 

The upside of an RV loan is that you may be able to borrow a larger amount and get a longer loan term. The downside is that a down payment is usually required, and your credit score can influence the rates you qualify for. 

Chattel loans

Chattel loans allow you to purchase movable pieces of property, which serve as collateral for the loan. You can use chattel loans to purchase mobile homes and other types of property, such as boats or motorcycles. 

The main advantage of a chattel loan is that the application and qualification process may be easier than traditional home financing. The downside is that these loans can carry higher interest rates and have shorter repayment terms, which may result in a larger monthly payment. 

How to choose the right mobile home loan for you 

Choosing the right mobile home loan depends on the type of property you’re buying, your credit, and your financing needs. Here are questions to help you decide which loan may be best.

• How much do I need to borrow?
• Am I buying a mobile home, manufactured home, or modular home?
• Will the home have a permanent foundation?
• What can I afford for a down payment? 
• What interest rates am I likely to qualify for, based on my credit score? 
• Do I prefer a shorter or longer loan term?

Getting rate quotes from at least three lenders can give you an idea of what you might qualify for. Look for lenders that offer mobile home loan preapproval with no hard credit check. 

How to get a loan for a mobile home

Getting a mobile home loan will depend on which type of financing you’re interested in, but it may look like this:

1. Decide which type of loan you need
2. Check your credit scores and report from all three credit bureaus
3. Get rate quotes from multiple lenders, and review each lender’s minimum qualification requirements
4. Choose a loan type, and calculate what down payment you’ll need, if any
5. Apply for the loan, and provide the lender with supporting documentation
6. Complete a property inspection if one is required
7. Wait for approval
8. Sign the loan documents, and pay the closing costs (if applicable)

How long this process takes can depend on the loan you apply for. It’s possible to get approved for personal loans the same day and get funded the next business day. Tiny home financing or manufacturer financing may take several weeks or months. 

When you’re ready to buy a mobile home, it’s smart to shop around to compare personal loans. 

FAQ

Can you get a mobile home mortgage?

Yes, you can secure a mortgage for a mobile home—with certain conditions. Traditional mortgage lenders may finance mobile homes classified as real property, meaning they’re permanently affixed to land you own, such as manufactured or modular homes.

Are there specific rules for loans for mobile homes in parks?

Yes, mobile homes located in parks may require specialized financing, such as chattel loans. These loans focus more on the home itself, not the land it’s on.

What is the loan term for a mobile home?

Loan terms for mobile homes vary based on factors such as your credit score and down payment, as well as the loan type (e.g., a personal loan versus a tiny home loan). Typical terms may range from five to 20 years, but some lenders may offer terms up to 30 years.

What is the oldest mobile home that can be financed?

Most lenders restrict financing to mobile homes no older than 20 years, but some may permit financing for homes as old as 30 years if they’re in excellent condition.

Can I buy a mobile home with no money down?

Yes. If a personal loan is the best option for you, you won’t need a down payment.

How long are most mobile home loans for?

Depending on the loan type, mobile home loans can be paid off over five to 20 years. It ultimately depends on the specific terms of your loan agreement.

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

The necessary credit score can vary based on the lender and loan type. Some may approve borrowers with credit scores as low as 580, but a higher score often secures better rates.

Recap: Best personal loans for mobile homes

Lender	Rates (APR)
LightStream	7.49% – 25.49%
Upgrade	8.49% – 35.99%