Manufactured homes are ideal for anyone looking for a high quality, cost-effective home built on a fast timeline. Thanks to the efficiency of factory construction, manufactured homes can be more attainable and quicker to build than site-built homes.

When you’re thinking about buying a manufactured home, it’s important to know your financing options. It’s a common misconception that it’s complicated to get a loan for a manufactured home – but the process is similar to getting financing for a site-built home. 

To set you up for success with getting a loan for your manufactured home, we’re breaking down the key steps from manufactured home financing expert Cody Ring, Vice President of Loan Origination at offsite-built home lender Triad Financial Services.

• Getting a loan for a manufactured home is similar to the process of financing a site-built home. Follow this straightforward process: determine your budget, review your loan options, choose your lender, and submit your application.
• Chattel loans and FHA Title I loans are the two of the most popular options for people buying a manufactured home they’re going to place on leased land in a community or park.
• Combination loan options for financing a manufactured home and land include FHA Title II loans, VA loans, and USDA loans.
• Traditional home financing is available through Fannie Mae’s Manufactured Home Advantage™ program and Freddie Mac’s CHOICEHome® program for certain types of manufactured homes that meet the requirements of the programs.

Before you start exploring manufactured home financing options, determine your all-in budget including the home, land, delivery, and installation. It will give you more context on what you can afford when you apply for a loan. Your manufactured home retailer can help you estimate the cost of delivery and installation as you figure out your budget.

Your monthly payment may include:

• Loan Principal
• Interest
• Property Taxes
• Homeowner's insurance
• Mortgage insurance depending on the loan type and down payment

Looking for a tool to help you determine your annual budget? Use our estimated monthly payment calculator for manufactured homes to break down how much you can budget per month.

As manufactured homes are increasing in popularity as a durable, attainable housing option, the opportunities for financing are continuing to grow. Whether you’re looking to place a home on land you own, put a home on leased land, or buy a home and land together, there are many financing options available to you.

Eligibility: Available for buyers with fair to good credit. This is the most popular loan for homebuyers who are financing a manufactured home on leased land in a community or park.

Details: A personal property loan that provides financing for a manufactured home only, without putting land down as collateral.

Eligibility: Ideal for buyers needing more forgiving credit flexibility and lower down payments.

Details: Requires a down payment as low as 3.5% depending on credit. FHA Title I loans don’t require you to own the land where you put your home, so they’re ideal for anyone looking to place their home in a manufactured home community or park. If you already own land, FHA Title I loans are also available to finance just the manufactured home. FHA Title II loans are combination loans for both the home and the land it’s installed on. 

Eligibility: For veterans, active military members, and qualifying surviving spouses.

Details: May allow for 100% financing (0% down payment) and offers competitive rates and terms.

Eligibility: Available in rural areas for low- to moderate-income buyers.

Details: Like VA, USDA may allow for 100% financing (0% down payment), making homeownership more accessible in rural communities. Income limits apply based on household size and area.

Eligibility: An ideal option for homebuyers needing to finance the manufactured homebuilding process.

Details: A short-term loan that allows for the construction of the manufactured home with funds drawn as the project progresses and converts to a permanent mortgage once the home is completed.

Eligibility: Available for buyers with fair to good credit who are purchasing certain types of manufactured homes that meet the requirements of Fannie Mae’s Manufactured Home Advantage™ program or Freddie Mac’s CHOICEHome® program.

Details: This traditional mortgage option offers competitive rates and down payments, offering a new path to homeownership.

The options for manufactured home financing are continuing to grow, so finding the right lender is easier than ever. There are many large companies who specialize in manufactured home financing, which simplifies the process of identifying a reputable lender. Manufactured home lenders tend to operate regionally, and a lot of your options will likely be specific to your area of the country. 

Your manufactured home retailer will likely have a list of preferred lenders they recommend, allowing you to choose from companies they’ve already vetted. 

When you’re comparison shopping among lenders, look at these items to make your final decision: 

• Annual percentage rate (APR): The interest rate and fees you’ll pay each year.
• Total loan cost: The overall amount you’ll be paying for the loan, including principal, interest, and fees across your loan period. 
• Lender reputation: Sometimes total loan cost isn’t everything – it might make sense to have a slightly higher interest rate if it’s a known, reputable lender instead of a lower rate with an unknown lender. 

Applying for a manufactured home loan is straightforward, and it’s comparable to the process for obtaining site-built financing. You can apply online or in person if the lender has a location near you. 

Make sure these three key factors are in order before you apply, which the lender will be evaluating as part of your application:  

• Low debt to income ratio
• Good credit score 
• Consistent work history  

For more information about our manufactured homes, find the best Champion home for you, or contact a Champion retailer in your area. You can also contact our Homebuyer & Homeowner Assistance line Monday-Saturday 8am – 8pm EST at 877-201-3870, or fill out our contact form and a member of our team will reach out to you. 

Note: Champion Homes is not a lender and cannot provide financing to homebuyers. All references to independent lending programs are based on information provided publicly by that lender. See lender for more details. Champion Financing, LLC provides loan services for borrowers qualified through independent lending institutions.