Be a new unit that has never been installed at any other location.Manufactured and modular homes can be financed through the USDA’s Single Family Housing Guaranteed Loan Program but need to follow a number of restrictions.Īmong other requirements, your new home must: These mortgages are guaranteed by the United States Department of Agriculture and require no down payment. USDA loans are available to low- and middle-income borrowers in rural and suburban areas. Similar to FHA loans for traditional houses, you’ll need a minimum credit score of 500 (this may vary by lender) and you’ll be required to pay mortgage insurance premiums. If your credit score is at least 580, you may be required to put only 3.5% down. Unless you buy used, this will most likely limit you to a single-wide.įHA Title II Program: Title II loans are for real property only and require you to purchase your manufactured home together with a plot of land. The downside to these loans is that limits are placed on how much you can borrow. If you don’t own land, you will be required to sign a three-year lease on the lot you choose to rent. Each FHA loan has its own set of requirements.įHA Title I Program: Title I loans require a minimum down payment of 5% and can be used for personal property (i.e., manufactured homes classified as vehicles). The Federal Housing Administration (FHA) insures two types of loans that can be used to purchase mobile homes. The home also must meet strict eligibility requirements similar to those of an on-site home. In most cases, you must buy both the manufactured home and the land it sits on. These loans typically have a lower interest rate compared to other mobile-home financing options, but they also have some of the most stringent qualifications. These government-sponsored mortgage giants both offer loans that require a down payment as low as 3% and work much the same as loans for traditional homes. In most cases, these types of mortgages are backed by either Fannie Mae or Freddie Mac. Conventional mortgageĬonventional mortgages are available only for manufactured homes classified as real estate. Let’s look at some options for each scenario. (You might also have additional financing options if you’re a veteran.) As stated above, your financing options will depend on whether your mobile home is considered real or personal property.
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