Where Can I Get a Loan to Buy a Manufactured Home?

Manufactured Home

If you're wondering "where can I get a loan to buy a manufactured home?" you may be delighted to find that you have a variety of options. You can increase your options by having a significant down payment and an excellent credit history.

Factors to Consider

Not every lender provides loans for manufactured homes. Whether the loan is considered an actual mortgage or a personal loan secured by the collateral of the manufactured home depends on a few different factors:

  • The amount of money needed to purchase the manufactured home
  • The year the manufactured home was built
  • The foundation structure of the manufactured home
  • Whether the loan is only for the purchase of the manufactured home itself or the home and the land it sits on

It is important to figure out which lender will accept applications for these types of loans while figuring out if the loan will be a mortgage or another type of loan. Why is it important to find out if the loan will be a mortgage or not? Mortgages can have advantages over personal loans.

  • Mortgages generally feature lower interest rates than personal loans.
  • Mortgages are typically amortized over a longer period of time, resulting in a lower monthly payment.
  • Interest paid on mortgage loans may be tax deductible, whereas interest paid on personal loans is generally not tax deductible in most circumstances.
  • Mortgage loans can later be refinanced with cash-out.

For these reasons, it is worth it to try to find a lender who will provide a mortgage loan for a manufactured home as opposed to simply giving you a personal loan to purchase the manufactured home. This then leads to the question "where can I get a loan to buy a manufactured home?"

Mortgage Lenders for Manufactured Homes

Not all mortgage lenders offer loans for manufactured homes. While some mortgage lenders will provide loans for these types of homes in certain situations, many mortgage lenders simply opt to not offer these types of loans at all. Speak to your preferred lender to find out if these loans are available.

If you do not have a preferred lender, review this list of some of the mortgage lenders who provide loans for manufactured homes:

These are only a few of the many mortgage lenders accepting applications for manufactured home loans. Compare the loan offerings from a variety of lenders before deciding on one lender in particular because even a small difference in interest rates can translate into big savings over the life of your loan.

Get Help

If your goal is to purchase a manufactured home but you do not meet the income or down payment requirements set by mortgage lenders, consider applying for a mortgage guarantee through the Federal Housing Administration (FHA). While a mortgage guarantee through the FHA does not guarantee a mortgage approval, it does increase your chances of getting approved since the lender is assured that in the event of a foreclosure the FHA will foot the bill of the remaining balance. This does not mean that you no longer owe the money; instead, you owe it to the FHA rather than the original lender.

Manufactured home mortgage guarantees through FHA are called Title I loans. You must meet FHA requirements as well as receive credit approval through an FHA-approved mortgage lender. The credit approval process and down payment requirement is less stringent with an FHA approval, so this makes it an attractive option for someone wanting to buy a manufactured home despite some credit issues or lack of substantial funds for a down payment.

Where Can I Get a Loan to Buy a Manufactured Home?

If you do not qualify for a mortgage loan, obtaining a personal loan is another option. You will probably find that the interest rate is higher and the loan terms less attractive, but this is a viable option if a mortgage is not possible. Speak to your bank or credit union to find out if you qualify for a personal loan to purchase a manufactured home.

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Where Can I Get a Loan to Buy a Manufactured Home?