Discussing mobile home loan options
February 25, 2023

Getting a Loan for a Mobile Home is Closer Than You Think!

So, you may have found a mobile home you love, but now comes the dreaded loan process.

With individuals new to the homebuying game, mobile homes are becoming a more attractive option by the day. In contrast to traditional houses, mobile homes are more affordable, especially for those with a smaller budget but don’t want to give up modern amenities.

But where to go from there?

Financing a mobile home probably seems like uncharted territory to most. Some lenders provide mobile home loans, but financing for these homes differs from that for traditional houses. The type and size of the loan you qualify for will depend on your down payment, credit score, and home size. No matter where you find yourself in your journey to homeownership, getting a loan for your mobile home is closer than you think!

Let’s take a look at the different types of financing available for mobile homes today!

Chattel Loan 

A chattel mortgage is a loan for a mobile home or other movable personal property, such as machinery or a vehicle. The movable property, known as “chattel,” also serves as loan collateral. This is a very popular option for financing manufactured homes because it has a much quicker processing time since it only finances the home, not the home and property together. This could mean having your financing completed and your new home delivered in about 30 days!

Simply put, if you fail to make payments on your mortgage, your creditor or lender can seize and sell the property being financed to repay the loan. If you find yourself in financial difficulties, you could lose your home. However, your lender does not own your property indefinitely; if you pay off your chattel mortgage, the property becomes yours. Keep in mind that the land would still be yours since it is not included in the loan!

It’s also worth noting that this type of loan has higher rates and shorter terms than the other types of loans. 


USDA loans can provide significant benefits to those who use them. They make homeownership possible for many people who desire to be homeowners. USDA loans come with zero down payment requirements, low-interest rates, and less stringent income requirements than most loan products.

These are a few of the important requirements with USDA loans:

  • The home must have been built in the last 12 months and purchased from an approved dealer or contractor.
  • Single-wide mobile homes must be at least 12 feet wide (with a minimum of 400 square feet of living space.)
  • Double-wide mobile homes must be at least 20 feet wide.

FHA Loan

A Federal Housing Administration (FHA) loan can be used to finance a manufactured home, a lot to build it on, or both. Borrowers with mobile homes on their land or those in parks can obtain these loans. FHA loans come with fixed interest rates, a lower credit debt-to-income ratio, and down payment requirements, making them popular for first-time home buyers.

VA Loan

The Department of Veterans Affairs backs loans for qualifying active military members, veterans, and their families. VA loans can be used to purchase a manufactured/mobile home.

A VA loan does not require a down payment, and the minimum credit score required will vary depending on the lender you use.

Conventional Loans

Many homebuyers opt for conventional mortgages because they provide the best interest rates and loan terms, resulting in lower monthly payments. In this case, the bank provides a loan for the mobile home, the land it sits on, and all the improvements, like a big package deal.

A conventional loan allows you to make a small or large down payment depending on your needs but is usually preferable for people who are previous homeowners, as they can use the equity from their old home towards the purchase of their new mobile home.

Trust us, that equity comes in handy since the mobile home, land, and improvements can add up!

Personal Loan

Lenders have certain restrictions in place concerning how you can use personal loan funds. Depending on the lender, you may be able to use the funds to purchase a mobile home.

A personal loan may be less expensive upfront than a home loan because most closing costs are waived. On the other hand, personal loans typically have higher interest rates than traditional home loans. This is particularly if you have a low credit score.


You can use the land as collateral for a mobile home with a Land-in-Lieu loan. This type of land allows you to use the equity in your land as a down payment on a mobile home instead of cash.

The only thing it does is secure your home purchase financing while lowering the actual loan amount, just like a cash down payment would. Depending on the value of the land being used and the total purchase price of your mobile home, little to no additional money may be required to obtain land-in-lieu financing. The lender holds both the land lien and your home as collateral and releases them only when the loan is paid off.

You Have Options! There is a Mobile Home Loan for You

Financing a mobile or manufactured home can be challenging, especially if you want to use a mortgage.

Because most lenders do not consider mobile homes to be real property, there are numerous requirements and stipulations you must meet to qualify for a mortgage. If you can’t meet them, don’t worry; plenty of other financing options are available, such as personal and chattel loans! 

Before purchasing a mobile home, it is vital to be aware of your options so you can make the best choice for you. Our team at Braustin Homes is here to help! Speak with a member at Braustin Homes today! We are eager to help you on this journey to owning your mobile home!

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