Mobile homes give more flexibility at a lower cost compared to traditional homes. But it doesn’t mean that they can be had at a small expense. Most manufactured homes range from $60k to $100k, which is more than the majority of consumers can pay out of pocket. You’ll probably need to obtain financing when purchasing a mobile home.
Securing financing for one may be a challenge since these manufactured homes are not standard real estate. Many of the traditional lenders won’t finance your mobile home purchase.
The good news is that multiple Mobile Home Finance Companies are willing to give you a loan towards your mobile home. Keep reading to learn more about these mobile-home-friendly lenders.
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Top 10 Best Mobile Home Loan Companies
Averaging at around $84k a mobile home is a more affordable path to owning a home compared to traditional homes. Even so, like most buyers, you may still need to finance your manufactured home buying. Thankfully, there are plenty of flexible lending options to cater to your unique needs.
1. Vanderbilt Mortgage and Finance, Inc.
Vanderbilt stands out as one of the best Mobile Home Finance Companies due to its nationwide presence. Besides, it boasts comprehensive loan products plus solid customer support tools. Based in Berkshire Hathaway, they have specific loans to manufactured and modular homes across the nation.
With Vanderbilt’s mortgages and portfolio home loans, you can cover the acquisition of either land or mobile homes. Even more, this lender offers both manufacturer loans and mobile home loans, which makes it easier to finance your next property.
On top of its mobile home financing, Vanderbilt provides long-term loans for energy-efficient upgrades of mobile homes at a fixed rate. It means they can fund you even after closing on your home. Unlike other mortgage providers, Vanderbilt does not disclose requirements for loans on its site.
However, you can still exploit the Fresh Start Home Loan program, which increases the accessibility of mobile home loans to lower-credit-scoring consumers. The giant home finance company also has outstanding customer support, allowing you to choose a bi-weekly payment plan. In this plan, you can make half your payments every two weeks.
- Nationwide mobile home financing
- As little as 14 days to close home-only loans
- Outstanding customer reviews
- Dedicated mobile home product for lower-credit-scoring consumers
- Does not publish loan requirements or info on its site
2. 21st Mortgage Corporation
The lender makes it on our top ten Mobile Home Finance Companies roundup for specializing in manufactured home loans. Another reason we like 21st Mortgage Corporation is that they do not have a minimum credit score requirement for borrowers in most states. Therefore, it’s our favorite pick if you have less-than-stellar credit.
The 1995 founded lender serves 46 states plus the District of Columbia. It is the best provider If you want a flexible loan that allows both single and double-wide properties with or with no permanent foundation. Its loans are also available for financing homes in parks, on family land, on rented land, or leased property.
That said, this operator made our list because it is a perfect fit for low-credit borrowers. Although they desire a debt-to-income ratio not exceeding 43%, 21st Mortgage has no minimum credit score requirement. What’s more, is that you may still qualify for a loan even with a higher DTI.
- Focuses on mobile home financing
- Flexible financing for homes with or with no permanent foundation
- No requirements for minimum credit score in majority of states
- Financing up to 100 percent of mobile home plus the value of land
- Doesn’t have loan pre-approval
- Unavailable in some states
- Must seek approval from your mobile home dealer before submitting the loan application
Are you having trouble finding the lender for your manufactured home purchase despite your high-credit-scoring range? Look no more because ManufacturedHome.Loan has got your back. The mortgage broker offers the most competitive rates through its network of lenders if you have stellar credit.
Besides offering the lowest rates to eligible borrowers, you can benefit from its array of flexible loan products nationwide. If you qualify, you can get home loans with terms between 15 and 30 years at a fixed rate. Moreover, you can access a mortgage from the following companies through ManufacturedHome.Loan:
- Jumbo and Super Jumbo loans
- U.S. Department of Veterans Affairs, VA loans
- Federal Housing Administration, FHA loans
Getting a manufactured home construction loan is also easy with this lender. You can use a single loan to build your custom home and acquire land. Similarly, you can apply for financing all in-park modular, manufactured, and mobile homes.
The broker’s nationwide lender network is what makes them unique because it simplifies getting the cheapest available terms and rates. Even though all borrowers can benefit from their system, you’ll exploit the lowest rates best with good to excellent credit. Also, their pre-approval process is swift, sometimes within 24 hours.
- Has a network of lenders with the lowest rates
- May offer assistance for a down payment
- Gives access to manufactured home loans nationwide
- Provides financing for vacation homes and those in mobile home parks
- Does not disclose interest rates on their website
- You must submit a request form online to get an estimate
eLEND earns its spot on our top ten list of best Mobile Home Finance Companies for having robust and usable quoting tools, calculators, among other online resources. Apart from extending mobile home loans, the company also gives traditional mortgages to new existing customers. Moreover, you can apply for both single and double-wide modular homes, mobile homes, and manufactured homes.
However, your loan with eLEND must also include the land your home sits on. Additionally, the company only lends for homes sitting on a permanent foundation. It means you can’t finance the next home with them if it’s in a flood zone or the property is inside a mobile home park.
While eLEND’s loan product list is narrower compared to some of the options in our roundup, it keeps an extensive e-resource that appeals to eligible borrowers. Apart from having a user-friendly application process and online rate-quoting tool, you can also track and manage your mortgage via the MyLoanCenter dashboard.
New and existing borrowers can leverage numerous tools that are exclusive to eLEND. For example, you can upload a competitor’s loan estimate on the site’s mortgage comparison tool for a quick mortgage comparison. You’ll love the bi-weekly mortgage calculator for an active loan.
There’s also another mortgage calculator that compares your loan on 15-year and 30-year, helping you decide accurately. Applying for a loan is a breeze, thanks to the glossary of relevant definitions and multiple checklists that walk you through the process.
- Allows access to extensive online resources and tools
- Offers loans to new and existing homeowners
- Gives down payment assistance to eligible customers
- Loans limited to manufactured homes on a permanent foundation
- Customer support is only available through phone
- Its website has limited info
- Doesn’t finance homes in a mobile home park
5. Manufactured Nationwide Home Loans
This lender promises 100% financing and competitive loan terms with flexible options if the property you’re financing is on your land. Therefore, it’s our most-recommended choice if you are a lot owner. And as with most of the Mobile Home Finance Companies we’ve listed, MNHL boasts nationwide coverage.
You can get as much as 100% financing on triple-wide, double-wide, or single-wide modular homes, mobile homes, and stick-built properties. It means you can access the following mortgage products with Manufactured Nationwide Home Loans:
- FHA loans
- VA loans
- Federal National Mortgage Association (FNMA) loans
- Manufacturer’s construction loans
- United States Department of Agriculture, USDA loans
That said, MNHL may not be your ideal mortgage company if you want to finance a property on leased land or in a mobile home park. Consider financing through its favorable loan offerings if you own the land on which your mobile home sits.
- Offers services across the 50 states
- It can lend up to the home’s full sales price
- Fast eligibility checks on the internet
- There are no credit hits
- Loans unavailable for properties on leased land and mobile home parks
6. Chattel Mortgage Loan
Are you finding trouble obtaining a loan for a mobile home because it sits on leased land? Financing mobile homes lying on land-leased properties has never been easier with Chattel loans. Traditional mortgage providers won’t lend to you because you cannot fix the home to a permanent foundation on leased land.
Chattel means movable property or personal possession, similar to your manufactured home, which is classified as personal movable property. Your home becomes personal collateral when financing through a Chattel mortgage. The company will take legal ownership of your “chattel” or manufactured home. After clearing the chattel mortgage, you’ll retake the home’s legal ownership.
Many financial institutions have dedicated chattel mortgages to finance mobile homes. Ask your bank if they specialize in this option.
- A reliable option for financing mobile homes on a land lease
- Near-guaranteed approval for HUD-Approved mobile home park properties
- Provides loans for FHA-approved property owners to finance manufactured homes
- Higher interest rates than regular mortgages because they’re classified as personal loans
7. Fannie Mae
With an array of home loan products, the MH Advantage is specific to manufactured home borrowers. You can get a fixed-rate mortgage over a 30-year loan term. Alternatively, you may want to purchase your next mobile home through the 10/1 or 7/1 programs. The two options are particularly great if you want adjustable rates, lower fees, and interest rates.
- Nationwide availability
- Allows both single-wide and double-wide properties
- Dedicated loan program for manufactured homes
- The financed property must be on the owner’s land title
- Only homes with an MH Advantage Sticker are eligible
8. Freddie Mac Manufactured Home Mortgage
Like Fannie Mae, Freddie Mac is a government-backed enterprise. It provides loan products for manufactured home buyers. Unlike most lenders, the company lets you tie your mobile home loan into some of its other offerings often for traditional home financing. For instance, you can blend your application into the lender’s HomePossible mortgage and see if you qualify through those guidelines.
- Allows single-wide homes in planned-unit properties
- Second homes and primary residences are eligible
- Provides 10/1 and 7/1 mortgages with adjustable rates
- Down payment requirements
- Homes constructed before 1976 are ineligible
- Does not offer financing for mobile homes on leased land
9. FHA Mobile Home Loans
It is a great option for manufactured home loans if you’re the landowner or intend to purchase the land on which you want to install your mobile home. You can get a loan through the Title 1 or Title 2 programs via an FHA-certified lender. While the FHA doesn’t give out the actual loan, it insures your debt in the event you default.
- Provides loan terms of up to 30 years
- Low down payment requirements
- Allows customers with less-than-stellar credit
- Accepts higher debt-to-income ratio
- Only lends to landowners
- Doesn’t finance homes built before June 15, 1976
10. VA Mobile Home Loans
Are you a United States military veteran and want to finance your mobile home? Take advantage of your home loan benefit to apply for modular – or manufactured home financing. The Veterans’ Association applies nearly the same requirements you’ve already seen. The home, for example, must be on a permanent foundation and attract real property tax.
- Can finance 100% of the purchase cost
- Offers no-money-down loans
- Average credit requirements
- Loan outcome doesn’t depend on past credit issues
- Only lends to permanently fixed mobile homes
- Your home must be liable for real property tax
Frequently Asked Questions (FAQ)
Who will finance a mobile home?
Traditional mortgages, chattel loans, and some personal loans will finance a mobile home. However, you must overcome multiple hurdles to get a mobile home loan from most banks and traditional lenders.
That’s why we recommend going with a mobile home-specific provider that suits your unique needs. You can check our comprehensive roundup for possible options.
Is it harder to finance a mobile home?
Initially, it was more difficult to secure a mobile home loan than a traditional mortgage. The reason is that lenders had a mistaken belief about manufactured homes being of poorer quality than their stick-built counterparts.
Today, however, there are multiple options for financing mobile homes. In some cases, it is easier to finance a manufactured home than obtaining a traditional mortgage.
Who finances mobile homes in parks?
Whether or not you qualify for mobile home park financing depends on the lender. While lenders such as Manufactured Home. Loan can finance properties in mobile home parks, many other providers do not.
So, you have to ask your prospective lender beforehand if you plan on financing a home-park-based property.
How much is a monthly payment on a mobile home?
Similar to a traditional mortgage, lenders have different loan terms and interest rates. Your income and credit score will determine how much you pay each month. But it will pay to rate-shop and checking with multiple retailers who sell mobile homes.
What is the minimum credit score to buy a mobile home?
The minimum credit score for financing a mobile home varies by lender. For example, while the FHA loan requires a 10 percent down payment for 500 or lower credit scores, the 21st Mortgage Corporation has no credit requirements.
The Bottom Line
The best Mobile Home Finance Companies will loan for owner-to-owner sales as well as new construction. Along with assisting applicants with different credit scores, they’ll serve you when leasing or purchasing property for your home. It’s difficult to find lenders offering this level of flexibility.
That’s what informed our roundup of the ten best options for mobile home financing. We hope you can now narrow down your list as you shop around for the best lender for your needs.