A mobile home is usually more affordable than a traditional home, but you still might need financing. Learn more about how mobile home financing works and how to get a loan that suits your needs.
What Are the Best Mobile Home Lenders of 2021?
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
Best for low-interest VA loans
Before You Apply
- Mortgage types: VA, Military Choice, conventional fixed rate, Homebuyers Choice, ARM
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $2 million
- Better Business Bureau rating: A+
Best Features
-
Zero-down loans are available.
-
Private mortgage insurance is not required for many loans.
Before You Apply
- Mortgage types: conventional, FHA, VA, USDA, ARM, Carrington Flexible Advantage, first-time buyers, refinancing
- Minimum FICO credit score: 500
- Maximum loan amount: $2.5 million
- Better Business Bureau rating: A+
Best Features
-
Applicants with credit scores as low as 500 are accepted for some products.
-
Conventional loans are offered with down payments as low as 3%.
Before You Apply
- Mortgage types: fixed rate, ARM, conventional, USDA/Rural Development, FHA, VA, jumbo, refinance, renovation, reverse mortgage
- Minimum FICO credit score: 580
- Maximum loan amount: undisclosed
- Better Business Bureau rating: A+
Best Features
-
The selection of mortgages includes VA and USDA loans, which often have no down payment requirements.
-
The company has an A+ customer service rating with the Better Business Bureau.
-
Renovation loan options include the HomeStyle Renovation Loan, which combines the cost of remodeling and the mortgage into one loan.
Best for consumers with credit scores between poor and good
Before You Apply
- Mortgage types: conventional, fixed rate, ARM, FHA, refinance, VA, FHA Streamline Refinance, Refi Plus, VA Streamline Refinance
- Minimum FICO credit score: 620
- Maximum loan amount: Not disclosed
- Better Business Bureau rating: A+
Best Features
-
Borrowers with fair credit may qualify.
-
It features a simple online application process.
-
VA loan borrowers aren’t charged lender fees.
Before You Apply
- Mortgage types: conventional, FHA, VA, USDA, ARM, refinancing, renovation, jumbo
- Minimum FICO credit score: 620
- Maximum loan amount: $2 million
- Better Business Bureau rating: A+
Best Features
-
A broad range of mortgage products are offered.
-
Special mortgage programs for first-time buyers and manufactured homebuyers are available.
Before You Apply
- Mortgage types: VA, VA jumbo, refinance
- Minimum FICO credit score: 640
- Maximum loan amount: $1.5 million
- Better Business Bureau rating: A+
Best online bank for customer service
Before You Apply
- Mortgage types: fixed rate, ARM, home equity loans, refinancing, HomeReady for first-time homebuyers
- Minimum FICO credit score: 620
- Maximum loan amount: $4 million
- Better Business Bureau rating: A+
Best Features
-
A program is available for first-time homebuyers.
-
Existing Ally customers can get a closing cost discount.
Before You Apply
- Mortgage types: fixed rate, Affordable Loan Solution, FHA, VA, ARM, home equity line of credit, fixed-rate refinancing, FHA refinancing, VA refinancing, cash-out refinancing, adjustable-rate refinancing, jumbo
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $2.5 million
- Better Business Bureau rating: A+
Best Features
-
Bank of America has a wide variety of mortgage products.
-
The lender offers origination fee discounts for qualifying Bank of America and Merrill Lynch clients.
-
Home equity lines of credit have no annual, application or cash advance fees or closing costs.
-
Bank of America offers a first-time homebuyer program.
Before You Apply
- Mortgage types: fixed rate, FHA, VA, USDA, ARM, home equity line of credit, refinancing, medical professional mortgage program, jumbo, PNC Community
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $5 million
- Better Business Bureau rating: A+
Best Features
-
Multiple types of mortgages are available.
-
Some mortgage options require no or low down payments.
-
PNC supplies an online home ownership cost tool.
Before You Apply
- Mortgage types: Traditional, ARM, refinancing, home equity line of credit, Alliant Advantage Mortgage
- Minimum FICO credit score: 620
- Maximum loan amount: $2.5 million
- Better Business Bureau rating: A+
Best Features
-
No-down-payment mortgages are available for first-time homebuyers with excellent credit.
-
Mortgages are available to borrowers with FICO credit scores as low as 620.
What Is a Mobile Home Loan?
Mobile homes aren’t the same as traditional “stick-built” or “site-built” homes, which are built directly on top of the site where they’ll stand. Instead, mobile homes, also known as manufactured homes, are prefabricated and then moved to the location where the owner wants to live.
Getting a mobile home loan may be different from taking out a traditional mortgage. It will depend on the specific characteristics of your home. For instance, if you pay fees to the state department of motor vehicles or the mobile home still has wheels, it’s considered a vehicle or personal property. If that’s the case, you’ll need to rely on a chattel loan or personal loan to finance the mobile home purchase.
If your mobile home meets certain requirements, it may be considered real property and can qualify for mobile home financing.
- The home needs to be at least 400 square feet.
- It should have its wheels removed and be permanently affixed to a foundation.
- You need to own the land under it.
- The home must meet strict guidelines regarding its age and condition.
What Do You Need to Get Approved for a Mobile Home Loan?
Whether you’re looking to get a mobile home loan, chattel loan or personal loan, lenders will expect you to meet certain qualifications. You’ll need to show that you’re a trustworthy borrower in order to qualify for a loan and the best terms possible.
“There is usually a slightly higher loan cost with manufactured homes on a permanent foundation, and the financing rules are slightly stricter,” says Khari Washington, a mortgage broker and owner of 1st United Realty & Mortgage of Riverside, California. “To get approved for a mobile home loan, a person needs the same things they need for any other home.” These are the major requirements:
- Down payment. If your mobile home meets the standards for being considered “real property,” you can get a loan with as little as 3% to 5% down, depending on the type of loan and individual lender requirements. However, if you pursue a conventional mortgage to finance your mobile home purchase, some types of property may be ineligible, such as single-wide homes or investment properties.
- Credit score. Generally, you’ll need a credit score in the mid-600s to qualify for a conventional mobile home loan. However, the best interest rates and loan terms are reserved for borrowers with scores of more than 650. If you finance using a Federal Housing Administration loan, you may qualify with a score as low as 500, provided you pay a 10% down payment.
- DTI. Your debt-to-income ratio measures how much of your monthly gross income goes toward paying off debt. When financing a home in general, most lenders prefer that your back-end DTI, which includes your potential home loan payment along with all other debt obligations, be no more than 43%. Some allow up to 50%. However, when financing a mobile home, some lenders may require a lower DTI.
Do You Need to be a Landowner to Get a Mobile Home Loan?
Whether you need to be a landowner or not depends on the type of loan you are going to get. Most mobile homes are on leased land, says Dawn Pfaff, president of My State MLS, a nationwide multiple listing service. In those instances, the home is considered chattel, or personal property, and you’d get a corresponding chattel or personal loan.
“When you buy a mobile home on land that you own, as long as that home is permanently affixed to the land, the terms are much different,” Pfaff says. In this case, you can borrow a mobile home loan that works essentially the same as a mortgage. However, not all mortgage lenders approve loans for mobile homes, so you’ll need to find one that offers this type of financing.
What Is a Good Interest Rate for a Mortgage Home Loan?
Because mobile home loans are not as common as traditional mortgage loans and the terms tend to be a bit stricter, it’s difficult to pinpoint the average mobile home rate. The interest rate you’re offered will depend on a number of factors, including your creditworthiness, the type of property, the size of the loan and more.
That said, for a mobile home on a permanent foundation, a good interest rate would be around 3%, according to Washington. That’s just slightly higher than the average mortgage rate for a 30-year, fixed-rate loan.
When shopping around for a mobile home loan, it’s important to compare offers from several lenders to ensure you’re getting the lowest rate possible.
Will the FHA Finance a Mobile Home?
The FHA offers two types of mobile home loans.
The FHA Title I program is designed for homes that are considered personal property and not real estate. To get a Title I loan, you don’t need to purchase or own the land the mobile home will be sitting on. Pfaff notes that the amount you can borrow under the Title I program is capped, depending on the use:
- Manufactured home: $69,678
- Manufactured home lot: $23,226
- Manufactured home and lot: $92,904
There are also maximum loan repayment terms, depending on the property type:
- Manufactured home or a single-unit home and lot: 20 years
- Manufactured home lot loan: 15 years
- Multiunit manufactured home and lot: 25 years
The FHA Title II program is for mobile homes that qualify as real property and are taxed as real estate. It works the same way for mobile homes as it does for traditional homes. You can put down as little as 3.5% if your credit score is at least 580, or 10% if your score is between 500 and 579. You will be required to pay a mortgage insurance premium, regardless of the down payment amount. The home must also be your primary residence, and the repayment term can last up to 30 years.
When Do You Need a Mobile Home Loan?
Though mobile homes can be more cost-effective than traditional stick-built homes, they are still pricey. The average sale price of a new manufactured home was $98,100 as of March 2021, according to the U.S. Census Bureau. Opting for a double-wide or a home with certain customizations can drive that price much higher. If you don’t have the cash saved up for the full purchase price of a mobile home, it may be worth taking out a loan to cover the cost.
Another factor to consider is whether you will also need to purchase the land that the home will sit on. If you don’t already own a plot of land, but you want a mobile home that qualifies as real property, you may need to finance the land purchase along with the mobile home purchase.
View More Best Mobile Home Lenders
Before You Apply
- Mortgage types: conventional, FHA, VA, USDA, ARM, refinancing, bond, renovation, Freddie Mac HomeOne, Freddie Mac Home Possible, Fannie Mae HomeReady
- Minimum FICO credit score: 620
- Maximum loan amount: $3 million
- Better Business Bureau rating: A
Best Features
-
The first-time homebuyer program HomeOne can require a down payment of as little as 3% and borrowers may qualify with a minimum 620 credit score.
-
Government-insured loans including Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture programs are available.
Before You Apply
- Mortgage types: conventional, FHA, VA, USDA, jumbo, All in One Loan, 203K Renovation Loan, Fannie Mae HomeReady, Freddie Mac Home Possible, HomeFundIt, refinance
- Minimum FICO credit score: 620
- Maximum loan amount: $3 million
- Better Business Bureau rating: A+
Best Features
-
Exclusive mortgage products include the HomeFundIt for crowdfunding a down payment.
-
The lender has a national presence with regional fulfillment and local support.
-
CMG Financial offers a mobile app.
Before You Apply
- Mortgage types offered: conventional, ARM, conforming, FHA, DreaMaker, VA, jumbo, refinancing
- Minimum FICO credit score: 620
- Maximum loan amount: $3 million
- Better Business Bureau rating: A+
Best Features
-
Down payments as low as 3% are accepted.
-
Fixed- and adjustable-rate mortgages are available.
Before You Apply
- Mortgage types: conventional, VA, ARM, FHA, USDA, jumbo, refinance, home equity
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $3 million
- Better Business Bureau rating: A+
Best Features
-
Flagstar Bank provides a broad selection of mortgages and home equity loans.
-
Some mortgages require no or a low down payment.
-
Borrowers can apply for loans online.
Before You Apply
- Mortgage types: refinance, jumbo, hybrid ARM, fixed rate, HARP, VA, FHA, 203k loan
- Minimum FICO credit score: 620
- Maximum loan amount: $3 million
- Better Business Bureau rating: A+
Best Features
-
LoanDepot mortgages have a lifetime guarantee, which means if you ever decide to refinance an existing LoanDepot loan, the company will waive the lender fees and reimburse appraisal fees.
-
The company offers a variety of mortgage products.
-
It’s licensed in all 50 states.
Best for digital customer care
Before You Apply
- Mortgage types: fixed rate, ARM, conventional, cash-out refinance, refinance, jumbo, FHA, VA, USDA, new construction, interest rate reduction refinance loan
- Minimum FICO credit score: 640
- Maximum loan amount: undisclosed
- Better Business Bureau rating: A+
Best Features
-
Homebuyers can choose from a variety of mortgage products.
-
Home loans are available nationwide.
-
Down payment and closing cost assistance is available.
Before You Apply
- Mortgage types: conventional, jumbo, FHA, VA, USDA, HomeReady, High Balance/Super Conforming, Energy Efficient Mortgage, FHA
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $2 million
- Better Business Bureau rating: A+
Best Features
-
Varied loan options are available.
-
McGlone Mortgage Group offers mortgage calculators and other tools.
-
Co-signers are allowed for most loans.
Best for conventional mortgage
Before You Apply
- Mortgage types: conventional, ARM, refinance, HELOC, jumbo, fixed rate
- Minimum FICO credit score: undisclosed
- Maximum loan amount: undisclosed
- Better Business Bureau rating: A+
Best Features
-
Citizens Bank provides a homebuying service with rewards for borrowers in select states.
-
Homebuyers can get an interest rate discount for qualifying automatic payments.
-
Borrowers can apply online.
Before You Apply
- Mortgage types: conventional, FHA, VA, ARM, refinancing
- Minimum FICO credit score: 620
- Maximum loan amount: $765,600
- Better Business Bureau rating: A+
Best Features
-
PennyMac accepts a 50% debt-to-income ratio for conventional loans in some instances.
-
Online capabilities include a 24/7 access center and email status updates.
Before You Apply
- Mortgage types: ARM, cash-out refinance, conventional, FHA, HELOCs, jumbo, reverse, USDA and VA
- Minimum FICO credit score: 620
- Maximum loan amount: $3 million
- Better Business Bureau rating: A+
Best Features
-
Provides multiple mortgage options, including low and no down-payment loans
-
Offers fixed- or adjustable-rate mortgages
Advertising Disclosure: Some of the loan offers on this site are from companies
who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about and how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.
More News
Should I Sell My Home to Pay Off Debt?
6 Bank Account Scams and How to Avoid Them
This Is the Right Number of Checking Accounts