Mobile Home Loans: What You Need to Know

Just because you are purchasing manufactured homes or mobile homes rather than a traditional residence does not mean that you cannot take advantage of mortgages to pay for your new home. There are many companies who offer the full array of mortgages for mobile homes as they do for other structures. However, it might be more difficult to find mobile home loan lenders who will provide you with the funds to purchase your home. Before searching for a mobile home loan, there are a few things you need to know to help you get the right mortgage for you.

What Is Considered a Manufactured or Mobile Home?

The basic definition used for a manufactured home is one that was built offsite of the property. Then, the pieces were brought to the property and assembled to build the home. A manufactured home will be assembled and attached to a permanent foundation on the property. A mobile home is similarly manufactured and built but has one key difference: it is not affixed to the foundation. Many people choose manufactured homes due to a lower cost than more traditionally built homes.

What Homes Are Eligible?

Not all manufactured homes are eligible for a mobile home loan. One of the main considerations is that they must have been built after June 15, 1976. Some mobile home loan lenders might have an even stricter age limit on homes they will finance, such as a 15-year limit. Any government-backed loans, such as FHA or VA loans, typically requires a brand new home that you or another person never assembled and placed in another location. The homes must also be permanently affixed rather than remaining unattached to any foundation. You might have to have the foundation inspected as well to ensure that it is set up correctly.

Does Size Matter?

There is typically funding available for mobile homes of a variety of sizes, from single-wide to triple-wide units. It is more typical to find single- and double-wide options. The difference is the size of the home. Single-wide units are typically smaller and do not have a hallway; instead, the rooms are connected to one another. Double-wide options will provide more space and often look very similar to traditional homes. Triple-wide would be even larger. It is often difficult to find financing for singlewide units through traditional lenders.

Is There a Down Payment?

The overall cost of manufactured homes is typically less than a traditional home, so you might be able to find a mobile home loan with a much lower down payment than if you were to buy a traditional home. With some loan options, you might end up having no down payment and very little upfront out of pocket expenses. However, there might be a higher interest rate or other fees, and you will need to have insurance.

If you qualify for a mobile home loan, there are many types available to you, including conventional, FHA, VA and USDA loans. It is possible even for those with poor credit to qualify for a mortgage with little upfront costs. Because of their affordability, many people are choosing manufactured homes over traditionally built homes.

Weston Barnes is a writer and an avid reader. When he's not writing about business, marketing, health, pets, or relationships, he's immersed in his latest book.