Mobile Home
Financing Options

The lowest interest rates are generally found with a conventional mortgage. This mortgage is going to the bank to finance the mobile home, the land, and the land improvements. The downside to a conventional mortgage is you usually need a larger down payment to get this type of loan. Plan on a down payment of at least 20% for a conventional mortgage. Since the down payment includes the land and land improvements, a typical down payment can run you tens of thousands of dollars, depending on the land and the home you choose. A conventional loan is usually better for people who are buying their second or third home, where they can apply the equity in their old home toward the purchase of a new home.

USDA, FHA, VA Government loans, such as FHA loans and VA loans, are very similar to conventional loans in that they buy the land and the home together. Government loans usually require a much smaller down payment than commercial loans, and with the VA loan, the down payment may even be $0. The downside of a government loan is there are more requirements and restrictions than commercial loans, plus the interest rate will often be a little higher than a conventional loan. If you put down less than 20% on the home, you will also likely have to pay for private mortgage insurance (PMI). Finally, be prepared for the approval process to take a few extra weeks with a government loan.

You can utilize your own bank or private lender. Our goal is to make your home buying experience as easy as possible, so we’d love to help you find the mobile home of your dreams, whether you use our lenders or your own. Generally, your own lender will be your favorite bank or a friend or family member who would like to personally loan you money. The advantage of using your own bank is convenience and that you already have a built-up relationship. The only disadvantage is if your bank does not typically handle loans for mobile homes, you may find getting approved for the loan harder than with our lenders, higher deposits may be required, and possibly even a higher interest rate may be assigned to your loan. Just watch the details when you go through the borrowing process. Borrowing from a friend or family member is often offered at lower interest rates or smaller down payments. When borrowing person-to-person, we recommend hiring your own attorney to review the documents to ensure the loan arrangement is fair, no matter how much you trust the loan. This can help when the unexpected comes up; for example, what happens if the lender passes away? You should also know that loans between friends and family members can change the relationship, so be sure to talk through things like what happens if you lose your job, if there is a late payment, etc. Saving a few dollars is not worth driving a wedge between you and someone you care about. Through communication plus clear understanding of the loan arrangement can go a long way to preserving a healthy relationship.

When someone is paying for a home and installation with money they already have "in the bank," we call it a "cash deal" (but please, don't bring actual cash to the dealership!). We’ve closed on many mobile homes where people just bring us a check to pay for everything.