Buying a mobile home and the land it sits on can be an affordable way to become a homeowner. With mobile home prices typically lower than traditional single-family homes, these factory-built residences offer a budget-friendly path to homeownership.
However, securing financing for a mobile home and land purchase can be more complicated than getting a traditional mortgage. If you want to buy a mobile home and land in one transaction, you’ll need to familiarize yourself with the specialized loans and unique qualification requirements involved.
In this comprehensive guide, we’ll walk through everything you need to know about mobile home and land loans, including:
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What is a mobile home and how is it different from a manufactured home?
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What loan options are available to finance a mobile home and land?
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What are the costs involved in buying a mobile home and land?
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How can you buy a mobile home and land together?
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Tips for finding the right mobile home and land loan
Let’s start by clarifying exactly what constitutes a mobile home.
What is a Mobile Home?
A mobile home is a type of factory-built housing that is constructed off-site and then transported to a permanent location. Mobile homes are built to federal construction and safety standards regulated by the U.S. Department of Housing and Urban Development (HUD).
Specifically, HUD defines a mobile home as any factory-built home that was constructed prior to June 15, 1976, when the agency first implemented construction standards for manufactured housing. Since mobile homes were built before federal standards existed, they tend to be lower quality structures than today’s manufactured homes.
Mobile homes are typically less expensive to purchase than site-built homes. However, they depreciate in value faster and can be more difficult to finance.
It’s important not to confuse mobile homes with manufactured homes and modular homes:
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Manufactured homes are factory-built homes constructed after HUD’s June 15, 1976 manufacturing standards went into effect. This newer generation of factory housing meets stricter quality standards.
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Modular homes are also factory-built, but assembled based on state and local codes where the home will be located. Modular homes often resemble traditional site-built houses.
Now that you understand the key differences, let’s explore how to finance the purchase of a mobile home and land.
Mobile Home and Land Loan Options
If you plan to permanently affix your mobile home to land you own, you can finance the purchase with a mortgage loan. With a mobile home and land loan, you can buy both the home and property in a single transaction.
Several loan programs are available, each with their own eligibility criteria. Popular options include:
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Conventional loans – Offered by private lenders and not guaranteed by the government. Require a minimum credit score around 620.
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FHA loans – Insured by the Federal Housing Administration and offer lenient credit requirements starting at a 580 credit score.
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VA loans – For veterans and service members. Require no down payment but have stricter credit standards.
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USDA loans – No down payment required and only available in rural locations. Credit score requirements start around 640.
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Chattel loans – Specifically for financing mobile homes. Usually come with higher interest rates but have low credit score requirements.
If your mobile home will not be fixed to a permanent foundation, chattel loans are your only option. With chattel financing, the lender retains ownership of the home until the loan is paid off.
Below is an overview of key qualification criteria to give you an idea of what to expect:
Loan Type|Min. Credit Score|Down Payment|Max. Loan Amount|Max. Term
Combine Land and Home in Just One Loan or Two!
How our one-time and two-time close construction loans work: Find land you want or use land you own, find a builder you like, and let us help you build that dream home with just one outstanding loan or two.
You may use the land you currently own with equity available for a downpayment, have a current land loan balance you wish to have paid off with this loan, or purchase land you place under contract to be paid in full at the complete closing. Then, we will take the detailed builder contract simultaneously and have the funds secured to disburse to your builder in stages that we monitor, ensuring you’re never taken advantage of, and your home is built to completion.
“The Only One-Time Close Construction Loan You’ll Ever Need, Of Course, Unless You Find It More Advantages to Do A Two-Time Close.”
Financing a Manufactured Home: What you need to know
FAQ
Can I buy land and put a mobile home on it in California?
Will an FHA loan cover a manufactured home?
Is a mobile home loan the same as a mortgage?
Who is the best lender for manufactured homes?
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Company
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Starting Interest Rate
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Loan Terms (range)
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Manufactured Nationwide Best Overall
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Varies
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15, 20, or 30 years
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ManufacturedHome.Loan Best for Good Credit
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Varies
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Varies
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21st Mortgage Corporation Best for Bad Credit
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Varies
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Varies
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eLend Best for Low Down Payment
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Varies
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Varies
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What are mobile home loans?
Some mobile home loans are meant to purchase only the home, not any land around it. Home loans intended for mobile homes within parks or communities include: More information on these types of loans can be found in the article above.
How do I get a mobile or manufactured home loan?
There are also mortgage lenders that specialize in mobile and manufactured home financing. The most straightforward solution, though, is to go through a standard mortgage lender that offers the loan you’re looking for. What Is The Minimum Credit Score Needed For A Mobile Or Manufactured Home Loan?
Can you finance a mobile home with a conventional mortgage?
If you want to finance a manufactured home, a conventional mortgage is one of many options, including a: Personal loan. If your mobile home is classified as a vehicle or personal property, then it qualifies for a personal loan. But personal loans may not provide as much financing and tend to have higher interest rates.
How long is a manufactured home loan?
A manufactured home or a single-unit manufactured home and lot is 20 years. A manufactured home lot loan is 15 years. A multiunit manufactured home and lot is 25 years. The FHA Title II program is for mobile homes that qualify as real property: That’s property that can’t easily be removed from the land. Loans cover manufactured homes with the land.
Can you buy a mobile home with a loan?
These loans can also be used to finance the purchase of a mobile home. As the loan is for the home only, and not the land, it can be ideal if you’re planning to live in a park or community – or if you already own land and just want to buy the home.
Can a manufactured home be financed with a mortgage?
Let’s take a look at both scenarios. If your manufactured home will be permanently connected to its land on a foundation, you can finance the purchase of your home and its land with one mortgage loan. Most commonly, you’ll take out a fixed-rate mortgage loan, one where the interest remains the same throughout the life of the mortgage.