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What is a Manufactured Home Loan

Manufactured homes are a popular and flexible housing option in the US due to their affordability. However, financing these homes can be challenging, which is why manufactured home loans exist. These loans are specifically designed to help people purchase or refinance their manufactured homes. While manufactured home loans have higher interest rates and require larger down payments with shorter loan terms than traditional home loans, they remain an excellent option for those seeking affordable housing. By collaborating with a PRMG home mortgage professional, you can find the right loan to meet your needs and achieve your homeownership goals.

Manufactured Home Loan Overview

Manufactured homes are an affordable and flexible housing option for many Americans. However, financing these homes can be challenging. That’s where manufactured home loans come in.

These loans are specifically designed to help people purchase or refinance their manufactured homes. Manufactured home loans often have higher interest rates than traditional home loans because they are considered higher risk. Additionally, borrowers may need to make a larger down payment and have a shorter loan term.

Despite these challenges, manufactured home loans are a great option for those looking for affordable and flexible housing. Moreover, some government programs, such as the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA), offer manufactured home loan programs to eligible borrowers.

In conclusion, manufactured home loans are a viable solution for people who want to own a home but have a limited budget or need flexibility. By working with a PRMG home mortgage professional, borrowers can find the best terms for their manufactured home loans and achieve their dream of homeownership.


Get pre-qualified for your loan with our free, quick, and easy application.

How to Qualify for a Manufactured Home Loan

Preapproval is the first and most important step towards acquiring your Manufactured Home Loan. Whether you’re a first-time home buyer or seeking to refinance your current home, getting preapproved helps narrow your focus to properties that fit your budget, establish credibility with sellers, and expedites both the loan funding and closing process.

Requirements for First-Time Home Buyers:

Manufactured home loans can be an excellent option for first-time homebuyers due to their affordability, flexibility, and government programs. These loans offer a less expensive and customizable housing option that requires a lower upfront cost, and some government programs like FHA loans offer lower down payments and credit score requirements. Additionally, manufactured homes are energy-efficient, which can lower utility bills and save money in the long run.

Good Credit Score:

Lenders look for a credit score within the “good” range to approve a borrower for a manufactured home loan. A higher credit score may also result in a lower interest rate.

Stable Income:

Borrowers must demonstrate a stable income to prove they can afford the monthly loan payments. Lenders usually require proof of employment and income through pay stubs, W-2 forms, and tax returns.

Down Payment:

Manufactured home loans typically require a down payment of a percentage of the purchase price. A higher down payment may result in a lower interest rate and lower monthly payments.

Low D.T.I. Ratio:

Lenders look at the borrower’s debt-to-income ratio to determine their ability to repay the loan. Generally, a lower debt-to-income ratio is required to qualify for a manufactured home loan.

Approved Property:

Manufactured homes must meet certain property requirements, including being located on a permanent foundation, having a minimum square footage, and being certified by the Department of Housing and Urban Development (HUD).

Further Education:

Some lenders may require first-time homebuyers to attend homeownership education classes to help them better understand the home buying process and their responsibilities as homeowners.

Requirements for Refinancing to a Manufactured Home Loan:

Refinancing into a manufactured home loan can offer homeowners several benefits, including lower monthly payments, access to home equity, and the opportunity to improve credit scores. Manufactured home loans typically have lower interest rates, providing more stability in monthly payments, and homeowners can access cash from their home’s equity to finance home improvements or make large purchases. Additionally, making timely payments and reducing debt can improve credit scores and lead to better interest rates in the future.

Equity in the Home:

The homeowner should have a certain amount of equity in the home to be eligible for refinancing. Typically, lenders require a percentage of equity in the home before refinancing.

Good Credit Score:

A credit score in the range of “good” is generally required for most manufactured home loans with a favorable interest rate. 

Stable Income:

Lenders will review the homeowner’s income and employment history to ensure they have a stable source of income and are capable of making payments on the refinanced loan.


Lenders will require an appraisal to determine the current market value of the home to establish the loan amount.


Homeowners must have clear title to the property they wish to refinance.


Homeowners will need to show proof of insurance coverage for the manufactured home.

Closing Costs:

Homeowners should be prepared to pay closing costs associated with refinancing, including application fees, appraisal fees, and loan origination fees.



These loans are not backed by the government and may require higher credit scores and down payments, but they offer flexible terms and may have lower interest rates.


Backed by the Federal Housing Administration, this loan is available for both the purchase and refinancing of a manufactured home. FHA Manufactured Home Loans offer lower down payments and credit score requirements. There are two types of FHA Manufactured Home Loans: An FHA Title I loan is designed for the purchase or refinancing of a manufactured home and its land, while an FHA 203(b) loan can be used for a variety of primary residences, including manufactured homes. The maximum loan amount for Title I is lower than for 203(b), and varies by location for 203(b).


Available to eligible veterans and their families, these loans offer 100% financing with no down payment required, and may have lower interest rates than other loan types.


Backed by the U.S. Department of Agriculture, these loans offer low-interest rates and flexible credit requirements for eligible low-income borrowers in rural areas.

It’s important to find the right type of loan that fits your unique financial situation. Contact one of PRMG’s home mortgage professionals today! We’ve been serving customers just like you for over 22 years. Your mortgage professional’s guidance can help you make an informed decision and secure your Manufactured Home Loan.

Pros of securing a Manufactured Home Loan

Lower Purchase Prices:

Manufactured homes tend to be less expensive than traditional homes, which can make homeownership more accessible for people on a tighter budget.


In addition to the lower purchase price, manufactured homes can be more affordable in the long run due to lower maintenance costs, energy efficiency, and other factors.

Faster Construction:

Manufactured homes are typically constructed more quickly than traditional homes, which can be an advantage for homebuyers who need a place to live sooner rather than later.

Energy Efficiency:

Many newer manufactured homes are built to be energy-efficient, which can lead to lower utility bills and long-term savings.


Manufactured homes can be customized to meet the needs and preferences of the owner, with a wide range of floor plans, sizes, and features available.


Because manufactured homes are often built on a single level, they can be more accessible for people with mobility issues or disabilities.

Financing Options:

There are a variety of financing options available for manufactured homes, including FHA loans, VA loans, and conventional loans, making it easier for people to find a loan that fits their specific needs.

Lower Maintenance:

Because many manufactured homes are built with durable, low-maintenance materials, they may require less upkeep and repair than traditional homes, saving homeowners time and money in the long run.

Cons of securing a Manufactured Home Loan


Manufactured homes may not appreciate in value like traditional homes, and may even lose value over time, which can make them a less attractive investment.

Financing Limitations:

There may be more stringent requirements for financing a manufactured home, such as higher down payments, which can make it harder for some people to secure a loan.

Location Restrictions:

Some communities may have restrictions on where manufactured homes can be placed, which can limit options for homebuyers.

Resale Value:

Because of the depreciation factor, manufactured homes may not have as high a resale value as traditional homes, which can make them harder to sell.

Higher Interest Rates:

Depending on the borrower’s credit history, interest rates on manufactured home loans may be higher than those for traditional home loans.

Limited Customization:

While manufactured homes can be customized to some extent, there may be limits to what can be changed or added, which can be a disadvantage for those who want more control over the design and layout of their home.

Land Ownership:

In some cases, owning the land on which the manufactured home is placed may be a requirement for securing a loan, which can add to the overall cost.

Quality Concerns:

Some manufactured homes may not be built to the same quality standards as traditional homes, which can lead to issues with durability and safety over time.

FAQS ABOUT Manufactured Home Loans

What is a Manufactured Home?

A manufactured home is a type of prefabricated home that is built off-site and then transported to its final location. It is often referred to as a mobile home or trailer home.

What is a Manufactured Home Loan?

A manufactured home loan is a type of loan used to finance the purchase or refinancing of a manufactured home.

How is a Manufactured Home Loan Different from a Traditional Home Loan?

Manufactured home loans often have different requirements and limitations compared to traditional home loans. This can include higher interest rates, stricter financing requirements, and limitations on customization options.

What are the Requirements for Securing a Manufactured Home Loan?

Requirements for securing a manufactured home loan can vary depending on the lender and the type of loan, but may include a minimum credit score, a down payment, and proof of income and employment.

Can I get a Manufactured Home Loan if I have Bad Credit?

It may be more difficult to secure a manufactured home loan with bad credit, but some lenders do offer loans for those with lower credit scores. However, interest rates may be higher in these cases.

Can I get a Manufactured Home Loan for a Used Home?

Yes, it is possible to get a loan for a used manufactured home, but the requirements may be different from those for a new home.

Can I Refinance a Manufactured Home Loan?

Yes, it is possible to refinance a manufactured home loan, but the requirements and limitations may be different from those for traditional home refinancing.


Whether you are a first-time homebuyer or are looking to refinance your existing mortgage, PRMG’s home mortgage professionals can provide you with the information and resources you need to make an informed decision about your financial future. We pride ourselves on our commitment to customer service and will work tirelessly to ensure that you receive the best possible experience.