Manufactured Housing News

Financing a mobile home can be a bit different from financing a traditional house, but it's possible with the right approach. Mobile homes, also known as manufactured homes, offer an affordable housing option for many individuals, couples, and families. Whether you're looking to purchase a new mobile home or refinance an existing one, there are several different options available to help you achieve your goal.

Personal Property vs Real Property

It's important to understand that mobile homes are typically classified as either personal property or real property. Personal property mobile homes are not affixed to a permanent foundation (or the land it sits on) and are often financed through chattel loans, similar to how you would finance a car. On the other hand, real property mobile homes are permanently attached to a foundation and may qualify for traditional mortgage financing.

Chattel Loans

For those looking to finance a personal property mobile home, chattel loans are the most common option. These loans are offered by lenders who specialize in mobile home financing and are secured by the home itself rather than the land it sits on. Chattel loans often have higher interest rates and shorter loan terms compared to traditional mortgages, but they can still provide a viable financing solution for many borrowers.

Lender Specialization Matters

When looking for a chattel loan for your mobile home, it's helpful to shop around and compare rates and terms from multiple lenders. Look for lenders who specialize in mobile home financing like Triad, and who have experience working with borrowers in similar situations. Additionally, be prepared to provide documentation like proof of income, credit history, and information about the mobile home itself, including its age, condition, and value. Read our financing overview.

Personal Loan

Another option for financing a mobile home is through a personal loan. Personal loans are unsecured loans that can be used for various purposes, including purchasing a mobile home. While personal loans may offer more flexibility in terms of loan amount and repayment terms, they often come with higher interest rates compared to other financing options.

Traditional Mortgage Financing

For those looking to finance a real property mobile home, traditional mortgage financing may be available. Real property mobile homes that are permanently affixed to a foundation and meet certain criteria may qualify for a mortgage loan from a traditional lender such as a bank or credit union. These loans typically offer lower interest rates and longer loan terms compared to chattel loans, making them a more affordable option for many borrowers.

When applying for a mortgage loan for a mobile home, be prepared to go through a thorough application process, including a credit check, income verification, and appraisal of the property. Additionally, make sure the mobile home meets the lender's eligibility requirements, including being in good condition and located on land that you own or lease.

Government Programs

In addition to traditional financing options, there are government programs available to assist with financing a mobile home. For example, the Federal Housing Administration (FHA) offers loans specifically designed for manufactured homes, which may require a lower down payment and have more flexible qualification criteria compared to traditional mortgage loans.

No matter what route you decide to take, financing a mobile home is possible with the right approach and understanding of the options available to you. By exploring different loan programs, comparing rates and terms, and working with experienced lenders, you can find a financing solution that meets your needs and allows you to purchase the mobile home of your dreams.