Getting approved for a manufactured home loan has never been easier, because there are more banks and mortgage lenders offering home financing for manufactured, modular and mobile homes in the United States. BD Nationwide will help you connect with mortgage companies that specialize in manufactured home loan financing.
In order to qualify for a conventional mortgage loan, a manufactured home must meet the standards for real property, akin to a site-built home. As previously mentioned, this entails being affixed to a permanent foundation, necessitating the removal of any mobile features like wheels, a towing hitch, and axles.
One of the main challenges in financing a manufactured home is that some states classify them as personal property rather than real estate. This classification can prevent buyers from obtaining a traditional mortgage for a manufactured home. However, many people bypass this obstacle by opting for personal loans instead of mortgages for manufactured homes.
Additional considerations include ensuring proper recording of the title and unregistering the home from your state motor vehicle department. There are still several conventional mortgage programs that allow manufactured home loans.
Obtaining preapproval marks the initial and pivotal stage in locking in the best manufactured home loan. Whether you’re a first-time homebuyer or aiming to refinance for a lower interest rate, obtaining preapproval streamlines your property search to align with your budget, enhances your credibility with sellers, and accelerates the loan funding and closing procedures.
Compare Mortgage Loans for Manufactured Homes
Manufactured homes are a sought-after and adaptable housing choice in the US, primarily due to their cost-effectiveness. However, securing financing for these homes can pose challenges, prompting the endorsement of manufactured home financing. Tailored to assist individuals in manufactured home loans are made to accommodate the unique nature of such properties.
Despite typically featuring higher manufactured home loan interest rates, larger down payments, and shorter loan terms compared to traditional home loans, manufactured home loans remain a viable solution for those in search of budget-friendly housing options. By teaming up with a BD Nationwide lender, you can identify the suitable loan to realize your homeownership aspirations.
Manufactured homes are required to be built to federal HUD Code which was created 28 years ago. “The term manufactured home was adopted in 1980 by the US Congress to describe a type of house that is constructed in a factory to comply with a building code developed by the Department of Housing and Urban Development (HUD).” Manufactured homes are not mobile homes.
Both Fannie Mae and Freddie Mac, the two primary purchasing giants of conventional loans, provide financing for manufactured home mortgages that adhere to their respective guidelines. The fundamental requirements include compliance with the HUD Code and attachment to a permanent foundation, with some nuanced distinctions.
For Fannie Mae manufactured home financing, the house should be at least 12 feet wide, encompassing a minimum of 400 square feet of gross living area. It must function as a one-unit dwelling, excluding any accessory dwelling unit (ADU). Ownership of the land in fee simple is mandatory, unless the home is located in a co-op, condo project, or planned unit development (PUD), while leased land is not deemed eligible.
On the other hand, manufactured home financing endorsed by Freddie Mac stipulates that the home must be at least 12 feet wide, with a minimum living space of 600 square feet, unless designated for use as an ADU, in which case a 400-square-foot minimum is accepted. Similar to Fannie Mae, land ownership is required unless the home is part of a condo project or PUD. Leased land may be considered eligible with permission from Freddie Mac. Learn more about
The average price for a home sold as a manufactured home was $48,800 in 2001. In 2025 that has nearly doubled to $81,500.
Other Manufactured Loan Options
Selecting a Manufactured Home Mortgage
There are several important factors you may want to consider when choosing a home loan.
- Make sure the lender has loan programs for manufactured or modular homes.
- Find out what kind Loan to Value limits the programs have.
- Find out what credit scores are needed for loan programs like refinancing or second mortgages.
Mobile vs. Manufactured Home Loans
Although the terms “mobile home” and “manufactured home” are often used interchangeably, they refer to different types of housing. A mobile home is a prefabricated structure built on a permanent chassis before June 15, 1976. In contrast, a manufactured home is a similar structure but was built on or after June 15, 1976.
The key distinction between the two lies in the U.S. Department of Housing and Urban Development’s (HUD) safety standards enacted in 1976. After these standards were introduced, the term “manufactured home” replaced “mobile home” to reflect the new regulations.
The primary difference between mobile and manufactured homes is that manufactured homes comply with HUD’s updated safety regulations, while mobile homes were constructed before these standards were implemented. Additionally, mobile homes were often designed for easy relocation, whereas most manufactured homes are not intended to be moved once assembled.
BD Nationwide can help you shop and compare home loan rates from multiple manufactured home lenders with no application fees.
FAQ for Manufactured Home Loans
Can You Get a USDA Loan for a Manufactured Home?
Yes, USDA loans allow financing for new manufactured homes that meet specific requirements. The home must be permanently affixed to a foundation, located in an eligible rural area, and meet HUD safety standards. Additionally, the borrower must meet income limits and the home must be purchased as a primary residence. USDA home loans offer zero down payment financing and low interest rates, making them an affordable option for manufactured home buyers.
Can You Buy a Manufactured Home with a VA Loan?
Yes, VA loans allow eligible veterans and active-duty service members to buy manufactured homes, but specific conditions apply. The house must be permanently attached to land, meet VA and HUD construction standards, and serve as the primary residence. Some lenders may have stricter policies on financing manufactured homes, so working with a VA-approved manufactured home lender experienced in these loans is essential. VA home loans are very popular because they require no down payment and competitive interest rates.
Who Does Equity Loans on Manufactured Homes?
Several lenders offer home equity loans on manufactured homes, but eligibility depends on whether the home is permanently affixed to land. Banks, credit unions, and private lenders may provide equity loans for HUD-compliant manufactured homes with foundation certification. Some specialized lenders offer HELOCs and home equity loans specifically for manufactured homes, though interest rates and loan terms may vary based on the home’s age, location, and borrower’s credit profile.