Financing a Mobile Home Purchase
Sue Shapiro November 10, 2025
Sue Shapiro November 10, 2025
Not too terribly long ago finding a loan for a manufactured home was a nightmare. Many lenders simply refused to lend on them. Today, however, with the Federal Housing Administration (FHA) insuring loans for manufactured homes, financing has become a lot easier.
A manufactured home is one that is built in a factory under guidelines set and enforced by the U.S. Department of Housing and Urban Development (HUD), and then moved to the land on which it will sit.
A manufactured home is not considered real estate, or real property as it's known in industry jargon, unless it is affixed to a foundation. If it is "bolted down," the home is considered personal property for lending, tax and other purposes.
Financing a manufactured home is a little different from financing a conventional "stick-built" home. A buyer can either locate a lender through the retailer from whom he or she purchases the home, or through a standard lending institution.
When applying for a loan for a manufactured home the buyer should first determine whether to purchase the mobile home as personal property (separate from the land) or if he or she will finance both. Interest rates for a personal property loan are typically higher than those for a real property loan, or mortgage.
FHA has a program known as Title I, under which the buyer uses the FHA-backed loan for the purchase of a manufactured home, the piece of land on which to place a manufactured home, or a combination of the two. Both the borrower and the manufactured home must meet FHA eligibility requirements.
You must have the required down payment and prove that your income is sufficient to allow you to make loan payments and still pay for other expenses. The home must utilized as your principal residence. Finally, you must have a suitable site for the home. This can be an individual lot that you either lease or own, or a lot located in a mobile home park, provided the park meets FHA guidelines.
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