Best Mobile Home Financing With Bad Credit

Everyone needs a home regardless of their financial status. One of the challenges that can affect your ability to acquire is a bad credit score. The big question is where can you run to if you want to be a homeowner and you have bad credit? This is a nightmare to some people. But you do not need to worry anymore. There are lots of options right now that you can explore.

Buying a mobile home is a fantastic idea with highly competitive financing packages. This is regardless of whether your credit score displays late payments or bankruptcy. The same applies when you want to get a manufactured or modular house. This information is not available to many people. So, if you have been searching for it, you are at the right place. In this article, we explore several options you can have to finance a home with bad credit.

Best Mobile Home Financing With Bad Credit Providers

You can also get financing for your first mobile home through modern methods. These include;

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1. FHA mobile home financing bad credit

FHA is an abbreviation for the Federal Housing Administration. Its home loans are ideal for persons with poor credit particularly when purchasing a mobile home. You do not apply for a home loan through the FHA. You will make an application through a financial institution, such as a credit union. This is a very simple process for everyone. You only need to make a call to the credit union to get your membership. Lenders are normally urged to fund FHA-insured mortgages. Its loans are unique. Here is how:

  • You do not need a big down payment with FHA loans. Only 20% is normally needed. FHA loans are normally authorized with down payments as low as 3.5%.
  • Interest rates are fixed for the whole loan term. This is typically 20 years for mobile homes and prefab homes.
  • The maximum loan amount available for a manufactured house is $66,678.
  • It has a manufactured house and a lot loan of $92,904 are available for you.
  • Borrowers with credit scores as low as 640 may still be able to finance a home. The only challenge with this that they will pay higher interest rates. Also, they will have bigger down payments, and even more just to qualify.

For borrowers to be eligible must meet the following requirements:

  • Show that they have enough money to make the minimum needed down payment.
  • You are able to prove sufficient income to fulfill the monthly loan installments. Additionally, you need to show you can meet other inclusive expenses. These are credit card payments, automobile loan payments among others.
  • Plan to live in the modular home as their primary house.
  • Locate a good location for the prefab home.
  • You can put the home on a rental site in a mobile home park as long as the park and leasing agreement follow FHA criteria.
  • You can build the home on a site owned or leased by the borrower.

2. Manufactured Nationwide mobile home financing bad credit

Manufactured Nationwide is one of the top overall mobile home lenders. It loans in all 50 states and collaborates with government-backed loan programs. This makes its services to be available to all citizens across the country. It offers a variety of loan plans with attractive fixed rates. You can also get low or no-money-down options. It offers manufactured mobile and modular house loans for new and secondhand housing. They include several sizes that are single, double, and triple.

Benefits of manufactured nationwide mobile home financing bad credit

  • You can get a loan with credit as low as 620.
  • They accept debt-to-income ratios that are higher.
  • You can get loan terms of 30 years, 20 years, and 15 years.
  • It is open seven days a week.
  • Can make one-time building loans for prefab homes and land.

3. Manufactured mobile home financing bad credit

Manufactured Home Loan is the best loan alternative for borrowers with good credit. It offers affordable mortgage rates and a solid online platform. This is for highly qualified applicants.

MHL can finance the purchase of new or used mobile homes. This is unlike most home lenders who only lend you for your primary dwelling. MHL expands your options of getting a mobile home when you have a credit score above 700. You may borrow money to buy a vacation house or a mobile home in a park where you lease the property.

MHL is ideally suited for consumers with strong credit scores above 700. It offers more alternatives and flexibility. It also utilizes government-backed programs that support credit scores of 600s. This includes VA and FHA and others.

you can get prequalified in less than 24 hours. Underwriting might take anywhere from 2 to 6 weeks for a conventional loan. This is for one of the government programs.

Benefits of manufactured mobile home financing bad credit

  • Strong mortgage offers are available to individuals who match the credit/income requirements.
  • Programs for first-time homebuyers.
  • It provides funding for residences in a mobile home park.
  • It provides funding for vacation houses in the form of mobile homes.

4. 21st Mortgage Corporation mobile home financing bad credit

21st Mortgage Corporation is the top mobile home lender for people with a bad credit score. It provides innovative fixed-rate manufactured home financing packages. It can also finance manufactured homes on leased property in a park. This is for both permanent and non-permanent home foundations.

You can qualify for a loan without additional documentation. But the borrower’s debt-to-income ratio must be less than 43 percent. This is different with 21st Mortgage. There is no minimum credit score need with 21st Mortgage. All property acquisitions demand a down payment ranging from zero to 35 percent. If your credit score is less than 570 and a down the required payment is 35%. You can pay it several options which include a mixture of cash, trade-in, or land equity.

Benefits of mortgage corporation mobile home financing bad credit

  • It is available in most locations.
  • It among the few who can finance secondhand mobile homes. This is despite the fact they depreciate significantly faster than standard houses.
  • There are no prepayment penalties.
  • Buyers can make down payments using cash, trade, or land equity.
  • Most states do not require a minimum credit score.

Once you secure a loan for your mortgage, you do not need to get worried about the kind of house you will get. Some loan lenders like FHA and VA have set standards for the manufactured homes. To be specific here are some of the requirements for the mobile homes by FHA.

  • Comply with the Model Manufactured Home Construction Standards
  • If the equipment is new, it should have a one-year manufacturer’s guarantee.
  • The house should be on a home site that meets site suitability standards. The home should have a suitable water supply and sewage disposal facilities.

Alternatives Of Traditional Financing

There are several options to finance your mobile home acquisition; Both traditional and modern. Below are some of the traditional financial alternatives.

  • Borrowing money from a friend or family member.
  • Saving 20% of your salary.
  • You can look for a seller who can finance your loan.
  • You can get funding from a mobile home dealer. Note that these could attract too high interests.
  • Getting financing from a credit union.

You can explore all these options in your journey to own your first home. If you are lucky enough, you may succeed. However, there is no guarantee that you will get finances but it’s worth trying.

Frequently Asked Questions (FAQ)

What credit score is needed to buy a mobile home?

The lenders we studied and chose as the finest can work with credit scores as low as 500 and as high as 600. A credit score of less than 500 may disqualify you entirely. A higher credit score will offer you better interest rates and conditions. Interest rates are lowest for credit scores in the 700s and 800s.

If your credit score is low, look for a lender who specializes in USDA, FHA, and VA loans. Conventional loans will not be as lenient with credit scores below 700. You may secure the loan, but it will have higher interest rates. Additionally, you will get a period of 20 years or less.

Is it possible to buy a mobile home with bad credit?

Yes, there are loan lenders that can help you secure a mobile home with bad credit. Some of them like FHA can give help you with a credit score as low as 640. Others can help even with a below that but you will have to pay higher interests.

How hard is it to get financed for a mobile home?

Financing any type of property is difficult. But it can only be extremely difficult for a first-time buyer. A 20% down payment is no longer the norm. Many public and private organizations assist those having less than 5% of the buy price of a home to put down.


Those are some of the best ways you can buy a mobile home despite your bad credit score. With that knowledge, there is no limitation for you not to have a mobile. Choose one of the above financing options and that will be the beginning of the journey to own your first mobile home.

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