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The National Manufactured Housing Construction and Safety Standards took effect on June 15, 1976. The law requires that new homes meet the Department of Housing and Urban Development’s safety codes. Homes made before June 15, 1976, may not meet HUD safety codes, so mortgage lenders won’t finance them. And some lenders charge origination fees as high as 6 to 7 percent — higher than the average mortgage loan’s closing costs.
Typically, personal loans come with a high-interest rates and shorter repayment terms. Different personal loans are available, regardless of whether you owned or leased the land where your mobile home is parked. Like other loans, mobile home lenders often require borrowers to have a minimum credit score and to make a down payment. Typically, your closing can be set three days after you sign your documents. Since most people who want to buy a mobile home will need a loan, we reviewed more than 10 mobile home loans and narrowed them down to the top four.
Real property versus personal property
When shopping around for a mobile home loan, remember to compare all loan terms and requirements to ensure the loans are comparable. Mobile home loans differ from a traditional property loan because most lenders and counties do not consider them real property, but rather personal property. In fact, in many counties, a mobile home is taxed by the department of motor vehicles rather than the property tax assessor. MHL can finance new or used mobile homes for purchase or refinance. While most mobile home lenders will only lend to you for your primary residence, and even then, only if you also own the land, and with good credit above 700, MHL can expand your options.
Or, if using a chattel or personal loan, the homeowner could place the home on rented land. A modular home is built in pieces in a factory and then assembled on a permanent foundation at the home site. A manufactured home is built in a factory and placed on a permanent foundation with no intention of further mobility. A mobile home is built in a factory and normally has wheels; it can be placed on a permanent foundation.
What Is Required to Get Approved for a Mobile Home Loan?
For the best variety of loan options and terms, Manufactured Nationwide is our best overall pick. Although its offerings are a bit more limited, Vanderbilt Mortgage and Finance is our runner-up, thanks to the ability for borrowers to make biweekly payments. How much your mobile home loan costs depend on variables like loan amount, loan type, and interest rate.
A mobile home, also known as a manufactured home, is a transportable, prefabricated structure moved via truck to a location and used as a permanent residence. More than 17.5 million people in the U.S. live in manufactured homes. Of course, higher credit scores will always get you better rates and terms. Credit scores in the 700s and 800s will get the lowest interest rates.
What to Consider When Choosing One of the Best Mobile Home Loans
They hold the mortgage loans internally and do not sell to or have to meet the requirements set by the government backed agencies Freddie Mac and Fanny Mae. This means less money down, flexible terms, and lower credit scores have a better opportunity of being approved. Chattel loans are most commonly used for airplanes, houseboats and farm equipment. A chattel loan is a 30 year loan for movable property and is secured by the property. Rates on manufactured home loans with a chattel loan start around 5.99% but can vary depending on your credit score.
The most attractive thing about personal loans is that there is absolutely no property approval involved. About 27% of manufactured homes are located in designated communities, colloquially known as trailer parks. That said, you can buy manufactured homes in rural, suburban, and urban areas all over the country.
Aside from low or zero-down mortgages, other loan programs offered by eLend include non-qualified mortgages, disaster loans and renovation and construction loans. A plethora of options means you can still qualify for low-money-down loans even if you’re not eligible for 100% financing. Loan offerings range from $100,000 for renovations to $1.5 million for purchases and construction. Most people would think that an excellent credit score is mandatory for a lending company of such status.
Applying for the best mobile home loans takes time and, typically, a lot of paperwork. In addition to a loan application, most lenders also will request copies of recent paycheck stubs, bank records, tax returns, investment account records, and the borrower’s photo identification. The lender also may require an appraisal and inspection on the mobile home to ensure it’s in good condition and the property value is in line with the loan amount. Once the paperwork is in order and the borrower has met the lender’s loan requirements, the lender will send the loan application for underwriting and approval. To evaluate mobile home loan providers, we looked for companies with solid reputations in the industry, quick loan closings, and multiple loan types.
Typical mobile home loans include government-backed loans such as VA and FHA loans, chattel loans, and personal loans. Conventional loans are rarely used on mobile homes unless they’re affixed to land that you own and not in a mobile park. If you are currently looking for a property, comparing loans from several lenders can make a lot of sense. As you shop around, look at the types of loans offered, available terms, rates, credit score requirements, and other factors like how each lender fares in terms of customer service. Doing so will help you find the best financing option for your situation.
As a top-ranking mobile home lender, the company owns and services over 180,000 mortgages valued at over $9 billion. 21st Mortgage Corporation offers mobile home loans to borrowers with poor minimum credit scores and charges no prepayment penalties. Its innovative fixed-rate loan extends to mobile homes on parks and leased lands for non-permanent and permanent foundations. As a licensed national mortgage provider, the company offers conventional loans (fixed-rate and adjustable rate) and government-backed loans just like its peers. The company’s core selling point is its over 45 years of experience providing varying loan options for existing, modular and newly constructed mobile homes.
People are often surprised when they see just what is possible in today’s manufactured homes. The longest you can finance a mobile home is 30 years if you own the land as well. The other benefits and requirements of an FHA loan apply to VA loans. The home must be permanently fixed to a foundation that meets FHA standards. Requires less down payment and often 3.5% will meet the down payment requirements. Unfortunately, Manufactured Nationwide's website does not contain detailed information about their rates and terms.
The entire loan process can take as little as 30 days to close on your new home. Before you apply for a loan, you should make sure that you have enough saved up for a down payment and that you meet certain minimum credit score and debt to income ratio requirements. If possible, you should see if there are any loans that you can pre-qualify for without affecting your credit. Be sure to secure quotes from multiple different lenders so that you can compare rates and get the best deal possible. Cookie PolicyTerms of UsePartner with usPrivacy PolicyContactDesigned to help users make confident decisions online, this website contains information about a wide range of products and services. Certain details, including but not limited to prices and special offers, are provided to us directly from our partners and are dynamic and subject to change at any time without prior notice.
With over 20 years of experience providing various modular, manufactured or mobile home loan options, MHL is another force to reckon with in the mortgage business. It is a key partner of eLender — an alliance geared towards providing 100% home financing at low, competitive rates and favorable terms. This feature can help potential mobile homeowners refinance or purchase newly constructed or used mobile homes.
With Upstart, you only need a minimum FICO credit score of 580 to qualify. The APR ranges from 5.22% to 35.99% for three-to-five year loan term. With over 100 years of lending experience, Manufactured Nationwide is undisputedly the oldest manufactured or mobile home lending company. It is also geographically versatile, covering all 50 states of the United States.
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