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Housing prices keep climbing. The median existing home sale price hit $406,100 in November 2024 according to the National Association of REALTORS®. That's pushed a lot of buyers toward manufactured homes.
The numbers tell the story. According to Construction Coverage's October 2025 report, manufactured homes averaged $123,300 in 2024, roughly 66% less than site-built homes. Production recovered too, with 103,314 units shipped in 2024 compared to 89,169 in 2023. By mid-2025, annual shipment rates climbed to 106,000 units.
The American Housing Survey data from HUD shows 7.2 million occupied manufactured homes across the U.S., making up about 5.4% of total housing stock. These aren't just rural properties anymore States like Texas reported a 4.7% month-over-month increase in deliveries during April 2025 per the Texas Manufactured Housing Association.
But here's the catch: financing a manufactured home works differently than getting a mortgage for a traditional house. Most conventional lenders won't touch these properties. You need to know which programs accept manufactured homes and what requirements you'll face.
This guide breaks down the seven main financing options available in 2025, from government-backed FHA and VA loans to conventional programs and alternative financing. We'll cover eligibility rules, down payment minimums, credit score requirements, and the application process.
People use "mobile home" and "manufactured home" like they mean the same thing. They don't.
A mobile home is any factory-built home constructed before June 15, 1976. A manufactured home was built on or after that date. That specific date matters because of what the U.S. Department of Housing and Urban Development did in 1976.
HUD enacted the Manufactured Home Construction and Safety Standards, commonly called the HUD Code, on June 15, 1976 according to HUD.gov documentation. This federal code established safety, design, and construction standards for manufactured homes. Every manufactured home built since that date must meet these requirements.
Pre-1976 mobile homes? They might not meet those standards. That's why FHA won't finance them. If you're looking at a home built before June 15, 1976, you're pretty much limited to chattel loans or personal loans, which come with higher interest rates.
You can spot a post-1976 manufactured home by the HUD certification label. It looks like a small red metal plate, similar to a license plate, attached to the outside of the home. No HUD label means no FHA financing.
Here's something else that confuses people: modular homes. They're factory-built too, but they follow local building codes instead of the HUD Code. Once assembled, they're considered real property just like site-built homes. They're not governed by HUD regulations and they finance like traditional houses.
The distinction matters for your loan options. Manufactured homes on permanent foundations and classified as real property open up more financing choices. We'll get into that later.
Title I loans from the Federal Housing Administration let you finance just the manufactured home without buying land. According to HUD's March 2024 announcement, loan limits increased for the first time in 15 years.
Current limits: $148,909 for single-section homes and $193,719 for multi-section homes.
Minimum down payment sits at 5% for most borrowers. You'll need a credit score of at least 580 to qualify for the 3.5% down payment option, though many lenders set their own minimums at 640.
Maximum loan terms run 20 years and 32 days for single-section homes or 25 years and 32 days for multi-section homes per HUD guidelines.
These loans work well if you're placing your home in a manufactured housing community where you lease the land. The home must meet HUD standards and you'll need a foundation inspection before closing
Title II loans finance both the manufactured home and the land it sits on. These follow standard FHA mortgage guidelines, which means loan limits vary by county.
For 2025, the FHA floor limit is $524,225 for single-family homes in most counties, with a ceiling of $1,209,750 in high-cost areas according to the Federal Housing Finance Agency's November 2024 announcement.
Down payment: 3.5% with a 580 credit score or 10% if your score falls between 500 and 579. The home must be on a permanent foundation and classified as real property.
Loan terms extend to 30 years, just like traditional FHA mortgages. You'll pay FHA mortgage insurance premiums, both upfront and monthly.
VA loans offer the best terms if you qualify. No down payment required. No mortgage insurance. No loan maximum for borrowers with full entitlement.
The catch? The home must meet both HUD standards and VA foundation requirements per VA.gov guidelines. It needs to be permanently affixed to land you own and classified as real property.
Eligibility extends to qualifying veterans, active-duty service members, and surviving spouses. National Guard and Army Reserve members who meet service requirements can also qualify.
While the VA doesn't set a minimum credit score, most lenders want to see at least 620. Loan terms run up to 30 years.
Fannie Mae's MH Advantage program treats qualifying manufactured homes like site-built properties. That means conventional loan terms with down payments as low as 3% for first-time buyers.
Requirements get specific though. According to Fannie Mae guidelines, the home must have:
Credit scores typically need to be 620 or higher. Interest rates often beat FHA programs for borrowers with good credit.
Similar to MH Advantage, CHOICEHome offers conventional financing for manufactured homes meeting certain standards. The home must be on a permanent foundation and titled as real property.
Down payments start at 3% for qualifying buyers. Credit requirements typically run 620 minimum, with better rates for scores above 740 per Freddie Mac program documentation.
These loans compete with FHA programs on terms but avoid mortgage insurance premiums if you put down 20% or more.
Chattel loans treat the manufactured home as personal property, like financing a car. You don't need to own land, which makes these useful for homes in manufactured housing communities.
The downside: higher interest rates, usually 7% to 9% or more. Shorter terms too, typically 15 to 20 years maximum. Lenders often require credit scores around 575 to 600.
Down payments vary but expect 5% to 10% minimum. These loans work for homes that don't meet FHA or conventional requirements, including pre-1976 mobile homes.
For smaller manufactured homes, personal loans might work. They typically max out around $50,000 to $100,000 depending on the lender and your credit.
Interest rates run high, often 8% to 12% or more. Terms stay short, usually 7 years maximum. You won't need a down payment, but you'll need good credit, typically 650 or higher.
No home-specific requirements apply. The lender doesn't care about HUD labels or foundation types. But you'll pay for that flexibility through higher costs.
Loan Type
Down Payment
Credit Minimum
Maximum Term
Best For
FHA Title I
5%
580
20-25 years
Home only purchases
FHA Title II
3.5%
580
30 years
Home plus land
VA Loan
0%
No official minimum
30 years
Eligible veterans
MH Advantage
3%
620
30 years
Qualifying homes on foundations
CHOICEHome
3%
620
30 years
Permanent foundations
Chattel Loan
5-10%
575-600
15-20 years
Personal property
Personal Loan
0%
650+
7 years
Small home purchases
FHA manufactured home loan limits hadn't budged since 2008. That changed in March 2024 when HUD announced the first increase in 15 years.
The new Title I limits jumped significantly. Single-section home loans increased to $148,909, up from $69,678. Multi-section home loans rose to $193,719 from $92,904 according to HUD's press release.
HUD Secretary Marcia Fudge called the increase necessary to address the "affordable housing supply crisis." The limits now align better with actual manufactured home prices.
For Title II loans financing home and land together, standard FHA limits apply. The Federal Housing Finance Agency set 2025 base limits at $524,225 for single-family homes, with high-cost area limits reaching $1,209,750 per FHFA.gov.
Let's look at real scenarios. Say you're buying a $140,000 single-section manufactured home in Texas. Title I covers the full amount since it's under the $148,909 limit. With 5% down, you'd finance $133,000.
Or you find a $180,000 multi-section home on land you already own in California. Title II works since it's under both the Title I multi-section limit and the standard FHA county limit.
These limit increases opened financing for thousands of buyers who were previously stuck paying cash or using high-interest chattel loans.
The South dominates manufactured housing. Construction Coverage's October 2025 state analysis shows Texas, Florida, and North Carolina led in total shipments during 2024.
But market share tells a different story. Mississippi's manufactured homes made up 34.3% of all new single-family housing in 2024. Kentucky followed at 31.6%, then Louisiana at 30.4%. These states rely heavily on manufactured homes because they're affordable.
Alabama ranks high on both measures, placing fourth in total shipments and fifth in market share. That's unusual since most states score high on one metric or the other, not both.
Texas saw 4.7% month-over-month growth in manufactured home deliveries during April 2025 per the Texas Manufactured Housing Association report. Counties like Bastrop, Tarrant, and Dallas led in new placements.
West Virginia's manufactured homes represented 25.8% of new housing. Arkansas hit 24.7%. These percentages show how manufactured homes fill gaps in areas where traditional construction costs too much.
Some cities are changing zoning rules too. Jackson, Mississippi partnered with the state's Manufactured Housing Association to revise regulations that had banned manufactured homes for decades. The new ordinance distinguishes modern manufactured homes from pre-1976 mobile homes.
Pull reports from all three bureaus through AnnualCreditReport.com. You get one free report per year from Experian, Equifax, and TransUnion.
Look for errors first. Dispute anything inaccurate. If your score needs work, pay down credit card balances below 30% of your limits. Pay bills on time for at least six months before applying.
FHA accepts scores as low as 500, but most lenders want 640 minimum. VA loans don't have official minimums though 620 gets you better options. Conventional programs need 620 or higher.
Check the HUD certification label. It's required for any FHA financing and must be visible on the home's exterior. The label includes the home's serial number and certification date.
Confirm the build date. Homes constructed before June 15, 1976 won't qualify for FHA loans regardless of condition.
Determine if the home sits on a permanent foundation. FHA Title II, VA, and conventional loans all require permanent foundations. The foundation must meet local building codes and HUD standards.
FHA loans require a foundation inspection by a licensed engineer. The inspector verifies the home meets Permanent Foundations Guide for Manufactured Housing (PFGMH) standards per HUD requirements.
Cost runs $500 to $850 typically. The inspection takes one to two weeks to schedule and complete. You'll need the PFGMH certification before your lender can approve the loan.
Existing certifications work if the home was previously financed with an FHA loan and the foundation hasn't been modified.
Contact at least three lenders. Not all mortgage companies finance manufactured homes, so ask specifically about their programs.
Compare interest rates, but also look at fees. Some lenders charge higher origination fees for manufactured home loans. Ask about:
When comparing lenders for manufactured home loans, consider both traditional banks and specialized lenders like AmeriSave which offers FHA Title I, Title II, and VA programs tailored to manufactured home buyers. Shop rates from at least three lenders to ensure you're getting competitive terms.
Gather documentation: two years of tax returns, recent pay stubs, bank statements from the last two months, and proof of any additional income.
The lender orders an appraisal. For FHA loans, the appraiser must be on HUD's approved list for manufactured homes. Standard appraisers can't do these.
Underwriting takes two to four weeks typically. The underwriter verifies income, checks credit, reviews the appraisal, and confirms the home meets program requirements.
You might get a conditional approval requiring additional documentation. Provide what they request quickly to avoid delays.
Final walkthrough happens before closing. Check that the home's condition matches what you agreed to buy.
Closing costs typically run 2% to 5% of the loan amount. These include title insurance, recording fees, lender fees, and prepaid property taxes and insurance.
For FHA Title II or conventional loans, title work functions like traditional home purchases. Title I loans and chattel loans work differently since the home might not be real property.
Review your Closing Disclosure three days before closing. Compare fees to your Loan Estimate. Large increases require explanation.
After signing, you'll receive keys and the home is yours. Most closings take 30 to 45 days from application for FHA loans, 45 to 60 days for conventional.
Minimum 500 for Title I and Title II, but you'll need 10% down with scores between 500 and 579. Get your score to 580 and the down payment drops to 3.5% per HUD guidelines.
Most FHA lenders add their own requirements though. Many won't go below 640 despite FHA allowing lower scores.
No official minimum from the VA. Individual lenders set their own standards, usually around 620. Some VA lenders accept scores as low as 580 if other factors are strong.
Minimum 620 to qualify. You'll get better rates at 740 or above. Premium pricing kicks in around 760 per Fannie Mae and Freddie Mac pricing matrices.
Typically 575 to 600 minimum. Rates vary significantly based on credit scores. A 650 score might get you 8%, while a 600 could push you to 10% or higher.
Most lenders want 650 minimum, with better rates at 700+. These are unsecured loans, so credit matters more than with secured mortgages.
If your score sits below 620, spend three to six months improving it before applying. The interest savings over 15 to 30 years usually exceed thousands of dollars, making the wait worthwhile.
The way your manufactured home is classified matters. A lot.
Real property means the home is permanently attached to land and titled like a traditional house. Personal property means it's titled like a vehicle, with a certificate of title from your state's motor vehicle department.
Conventional loans from Fannie Mae and Freddie Mac require real property classification. So do FHA Title II loans. VA loans need it too.
Title I FHA loans and chattel loans work with personal property. But here's the thing: homes classified as personal property appreciate slower. They're harder to refinance later. Resale can be tougher.
Converting from personal to real property takes work. You need a permanent foundation meeting local codes. The home must be attached per state requirements. You file paperwork with your county recorder's office to "retire" the vehicle title and get a real property deed.
Some states make this easier than others. Texas streamlined the process in recent years. Other states require court orders.
Manufactured homes appreciate, just slower than site-built homes in some cases. But when they're on permanent foundations and classified as real property, the gap narrows.
Eye on Housing's April 2025 analysis looked at appreciation from 2000 to 2024. Manufactured homes financed as real property through Fannie Mae and Freddie Mac increased 203.7% cumulatively. Site-built homes rose 200.2% during the same period.
That surprised a lot of people. Manufactured homes on permanent foundations tracked with traditional homes, slightly outperforming them over those 24 years.
The data only includes homes financed through conventional mortgages though. It doesn't cover chattel loans, which remain the majority of new manufactured home financing.
Location matters too. The American Housing Survey shows 72.2% of existing manufactured home stock was built before 2000. Older homes in manufactured housing communities often depreciate like vehicles rather than appreciating like real estate.
But new manufactured homes on private land? They're a different story. In 2024, these homes appreciated 15% to 20% in many markets according to industry reports, driven by the shortage of affordable housing.
Wrong. Fannie Mae's MH Advantage and Freddie Mac's CHOICEHome programs exist specifically for manufactured homes. They require the home to meet certain standards and be on a permanent foundation, but they're available.
Depends on the home and how it's classified. Manufactured homes on permanent foundations classified as real property appreciate similarly to site-built homes per the data. Those titled as personal property do depreciate, but that's not universal.
FHA accepts 580 scores. Some programs go to 500. You don't need perfect credit, though better scores get better rates.
For FHA and VA loans financing manufactured homes on foundations, rates match site-built home rates. Chattel loans cost more, typically 2% to 4% higher, because they're riskier for lenders.
They can't get FHA financing. Chattel loans and personal loans still work. The options are limited and expensive, but financing exists.
Manufactured homes cost 66% less than site-built homes on average. Production's increasing. Financing options improved with the 2024 FHA limit increases.
If you're priced out of the traditional housing market, manufactured homes offer a path to ownership. The key is understanding which financing program fits your situation.
Got land already? Look at FHA Title II or VA if you're eligible Those programs offer 30-year terms with low down payments.
Planning to place the home in a manufactured housing community? FHA Title I works, though chattel loans might be easier to get approved.
Don't meet FHA or conventional requirements? Chattel loans provide an option, just expect higher rates and shorter terms.
When comparing lenders, look at both traditional banks and specialized manufactured home lenders. AmeriSave, along with other lenders focused on manufactured housing, understands these programs better than banks that rarely finance these properties.
The foundation inspection requirement catches some buyers off guard. Budget $500 to $850 and add one to two weeks to your timeline.
Most important: verify the home's build date and check for that HUD certification label before you fall in love with a property. No label or wrong date means limited financing options.
Yes, but only through VA loans if you're an eligible veteran or active service member. VA loans don't require down payments for manufactured homes that meet HUD and foundation standards according to VA.gov. The home must be permanently affixed to land you own and classified as real property. FHA loans require minimum 3.5% down with a 580 credit score or 10% down with scores between 500 and 579 per HUD guidelines. Chattel loans typically need 5% to 10% down. Conventional programs like MH Advantage and CHOICEHome require at least 3% down for qualifying first-time buyers. Personal loans don't require down payments but come with higher interest rates and shorter terms. If you don't qualify for VA financing, plan on having at least 3.5% to 5% of the purchase price saved for your down payment.
Title I loans finance just the manufactured home without land, while Title II loans finance both home and land together. Title I limits are $148,909 for single-section homes and $193,719 for multi-section homes as of March 2024 according to HUD.gov. These loans work when you're placing the home in a manufactured housing community where you lease the land. Maximum terms run 20 to 25 years depending on whether it's single or multi-section. Title II loans follow standard FHA mortgage guidelines with county-specific limits ranging from $524,225 to $1,209,750 per FHFA 2025 limits. They require permanent foundations and real property classification. Title II offers 30-year terms, better matching traditional mortgages. Both require the home to be built on or after June 15, 1976 and meet HUD standards. Choose Title I if you're leasing land, Title II if you're buying or already own the land.
Typical timelines run 30 to 45 days for FHA loans and 45 to 60 days for conventional loans like MH Advantage or CHOICEHome. The process starts with application and document submission, usually taking a few days to compile everything. Lenders then order the appraisal, which takes seven to ten days. The foundation inspection required for FHA loans adds another one to two weeks and costs $500 to $850. Underwriting takes two to four weeks once all documents and inspections are complete. VA loans sometimes close faster, around 30 to 40 days if you have your Certificate of Eligibility ready. Chattel loans can be quicker, sometimes 20 to 30 days, since they don't require property surveys or complex title work. Delays happen when borrowers don't respond quickly to documentation requests or when inspection issues arise requiring repairs before closing. Start your application early and respond promptly to lender requests to stay on schedule.
Yes, refinancing options exist for manufactured homes though not all lenders offer them. If you have an FHA loan, you can use the FHA Streamline Refinance program to lower your rate without a new appraisal or income verification per HUD guidelines. VA borrowers can use the Interest Rate Reduction Refinance Loan (IRRRL) program for rate reductions. For cash-out refinancing, you'll need your home to be classified as real property and on a permanent foundation. Conventional refinancing requires the home to meet MH Advantage or CHOICEHome standards. Chattel loans are harder to refinance since fewer lenders work with them. Many manufactured homeowners refinance to convert from chattel loans to conventional or FHA loans once they've established equity and improved credit scores. The home must appraise for the refinance amount, and you'll go through full underwriting just like the original purchase. Interest rates on refinances typically match current market rates for your loan type and credit profile.
When manufactured homes are permanently attached to land and classified as real property, they appreciate similarly to site-built homes. Eye on Housing's analysis showed manufactured homes financed as real property appreciated 203.7% from 2000 to 2024, compared to 200.2% for site-built homes during the same period. Location and age matter significantly though. The American Housing Survey found that 72.2% of existing manufactured home stock was built before 2000, and older homes in leased-land communities often depreciate rather than appreciate. New manufactured homes on owned land performed better, with some markets seeing 15% to 20% appreciation in 2024 according to industry reports. Homes financed as personal property through chattel loans typically appreciate more slowly or depreciate because they're titled like vehicles. Three factors drive appreciation: permanent foundation, real property classification, and land ownership. Homes with all three appreciate most consistently. Those in manufactured housing communities on leased land face more challenges with value growth.
Pre-1976 mobile homes don't qualify for FHA financing because they were built before HUD enacted the Manufactured Home Construction and Safety Standards on June 15, 1976 according to HUD.gov. Without the HUD Code compliance, these homes lack the federal safety standards required for government-backed loans. Your financing options narrow to chattel loans from specialized lenders or personal loans. Chattel loans for pre-1976 homes typically carry interest rates of 9% to 12% or higher because of the increased risk. Terms stay short, usually 10 to 15 years maximum. Some credit unions offer personal loans for mobile home purchases up to $50,000 or $75,000, but expect rates of 10% to 15%. Conventional programs like MH Advantage won't work either since they also require post-1976 construction. VA loans need HUD Code compliance, eliminating pre-1976 homes. Your best option might be saving to pay cash or looking for a newer manufactured home that qualifies for better financing. Pre-1976 homes also face higher insurance costs and more difficulty finding coverage due to safety concerns.
Yes, the VA guarantees loans for manufactured homes if they meet specific requirements. The home must be built on or after June 15, 1976 and meet HUD manufacturing standards according to VA.gov. It needs to be on a permanent foundation meeting VA requirements and local building codes. The home must be classified as real property, not personal property, which means proper titling and attachment to land you own. You can't use a VA loan for a manufactured home you're placing in a community where you lease the land. The property must be your primary residence. VA loans offer significant advantages: no down payment required, no monthly mortgage insurance, and competitive interest rates. There's no maximum loan amount for borrowers with full entitlement, though homes must meet VA minimum property requirements. The appraisal must be completed by a VA-approved appraiser. Some lenders specialize in VA manufactured home loans while others avoid them, so shop around. Your eligibility follows the same requirements as traditional VA loans for qualifying veterans, active-duty service members, National Guard and Reserve members with adequate service, and surviving spouses.
The HUD certification label is a red metal plate about the size of a license plate permanently attached to the exterior of every manufactured home built since June 15, 1976. It certifies the home was built in compliance with the federal Manufactured Home Construction and Safety Standards according to HUD.gov. The label includes the manufacturer's name, home serial number, certification date, and confirmation it meets HUD Code requirements. You'll typically find it on the home's exterior near the back or on one of the side panels, though exact placement varies by manufacturer. Each section of a multi-section home has its own label, so a double-wide has two labels. The label is permanent and tampering with or removing it is a federal offense. If you're looking at a manufactured home and can't find the HUD label, the home was either built before 1976 or the label was removed. Without the label, you can't get FHA financing and most conventional lenders won't touch the property. Some states maintain databases of manufactured home serial numbers that can verify a home's certification, but lenders require the physical label. Before making an offer, photograph the HUD label and verify the serial number matches the home's title and any existing documentation.
It depends on the loan type. FHA Title I and Title II loans for manufactured homes on permanent foundations carry the same interest rates as FHA loans for site-built homes per HUD rate sheets. VA loans for qualifying manufactured homes also match rates for traditional VA mortgages. Conventional programs like Fannie Mae's MH Advantage offer competitive rates, often better than FHA for borrowers with credit scores above 720. The rate difference appears with chattel loans, which treat the home as personal property. Chattel loan rates typically run 2% to 4% higher than mortgage rates, putting them in the 7% to 10% range depending on credit scores and market conditions. Personal loans carry the highest rates, often 8% to 15%, because they're unsecured debt. The gap exists because chattel loans and personal loans carry more risk for lenders. Without real property as collateral, lenders can't foreclose like traditional mortgages. Recovery of the asset is more difficult and expensive. If you want the best rates, ensure your manufactured home meets requirements for FHA, VA, or conventional financing, all of which require permanent foundations and real property classification.
Technically you don't need it to own the home, but practically you'll need it to get financing. Every lender requires homeowners insurance as a condition of the loan whether it's FHA, VA, conventional, or chattel financing. The insurance protects the lender's interest in the property. If you pay cash, insurance is optional but recommended. Standard homeowners policies don't always cover manufactured homes properly. You need a specialized manufactured home insurance policy or an endorsement to a standard policy covering factory-built housing. Coverage costs vary based on whether the home is on a permanent foundation and how it's classified. Manufactured homes on permanent foundations and classified as real property typically get insurance rates similar to site-built homes. Those titled as personal property cost more to insure. Location matters significantly too. Homes in wind-prone areas like Florida or tornado zones face higher premiums. Many insurers require homes to meet certain tie-down and foundation standards. Older homes built before 1990 can be harder to insure and cost more. Shop around because rates vary widely between insurers specializing in manufactured homes versus standard homeowners insurance companies.
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