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. 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.
Compare Mortgage Loans for Manufactured Homes
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 2024 that has nearly doubled to $81,500.
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.
Manufactured Loan Options
Second Mortgage Refinance
Home Equity line of credit
Purchase Loans
Home Equity Credit Lines