Best Mortgage Lenders for Manufactured Homes

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Contributor, Benzinga
September 28, 2023

Manufactured home loans are not always easy to come by, especially if you want to take out a conventional mortgage. Lenders that offer manufactured/mobile home loans have several stipulations that must be met in order for the home to qualify for the loan.

It is possible to find mortgage lenders for manufactured homes, provided the home is permanently affixed to the land. It also helps if you own both the home and land. The good news is that, while finding funding can be a challenge, there are possibilities for obtaining a mortgage if your home meets these standards.

Best Mortgage Lenders for Manufactured Homes

  • Best Overall: Rocket Mortgage
  • Best for Flexible Loan Options: 21st Mortgage
  • Best for a Variety of Options: Land Home Financial Services
  • Best for Low Down Payments: Triad Financial Services

Best Mortgage Lenders for Manufactured Homes

Below, you will find a few potential financial partners that can help you get a mortgage loan for a mobile home. The alternative to mortgaging a home would be a chattel loan, which is no different than a car, boat or personal property loan. But if you can secure a mortgage, it will have much more favorable terms.

As with any financial transaction, it is important to research your lender to make sure you are picking the right financing for your situation. Consider beginning your search for the right financing option with a few of the home lenders below. 

1. Best Overall: Rocket Mortgage

When it comes to manufactured homes, Rocket Mortgage LLC has a few guidelines that must be met to obtain a mobile home loan. First, the home and land must be represented together on the title, meaning you must own the land and the mobile home to obtain financing. The home must also be on a permanent foundation, with wheels and axles removed. Finally, the home must have been built after June 15, 1976.

If your home meets these standards, then to qualify for a mortgage you will need a minimum credit score of 620, at least a 5% down payment on the loan, and your debt-to-income ratio must fall within a certain range. Because Rocket Mortgage has helped hundreds of thousands of people finance homes, it has the credibility and know-how to be a good financial partner if you’re having trouble securing financing in your area. 

Pros

  • Fully digital and online mortgage application process
  • Fast application process
  • Clear and transparent information about their loan options, terms, and fees

Cons

  • Limited personal interaction 
  • Potential automation errors

2. Best for Flexible Loan Options: 21st Mortgage

21st Mortgage Corp. specializes in loans for manufactured homes. While it offers land plus home loans that have similar terms to a conventional mortgage, it also offers mobile home financing only if you do not own the land, but these are offered at higher rates and different terms.

Offering a streamlined application process online and a useful payment estimator, 21st Mortgage gives its prospective clients the tools they need to evaluate their loan options. As far as mortgages go, 21st Mortgage offers a 30-year land-and-home loan program. For people who do not own their land, loans can be amortized over 25 years.

If your credit is less than stellar, 21st Mortgage may have a solution for you. It has no credit minimum to obtain financing, and if your credit is poor, you may still be able to get a loan with a larger down payment. Its stated mortgage rates are between 7% and 14%, so while you can obtain financing with worse credit, you are likely to pay more than financing elsewhere. 

Pros

  • Competitive interest rates and flexible repayment terms
  • Quick and efficient application process
  • Personalized customer service and support

Cons

  •  Requires a credit check and income verification for loan approval
  • May charge fees for certain services, such as late payments or loan modifications

3. Best for a Variety of Options: Land Home Financial Services

Land Home Financial Services (LHFS) was established in 1988 and has been financing manufactured homes ever since. Because it specializes in financing manufactured homes, LHFS can provide insight into the financing process, regardless of where you stand in the process and what your plans are for your new mobile home loan.

If you own land already and want to purchase a home to put on the land or if you want to buy land and the home at the same time, LHFS can offer conventional, FHA or VA mortgages at  competitive rates. With perks like down-payment assistance, credit flexibility and the ability to have a co-signer, LHFS can be a great financial partner for manufactured home loans.

Pros

  • Experienced team of professionals to guide customers through the process
  • Strong industry reputation with positive customer reviews
  • Quick and efficient loan approval process

Cons

  • Limited branch locations, primarily operating in select states
  • Limited online tools and resources for self-service options

4. Best for Low Down Payments: Triad Financial Services

Triad Financial Services Inc. only offers financing on manufactured homes, so if you are looking for an expert in the field, it might be a strong partner. Offering home-only financing in 46 states and home-plus-land financing in 19 states, Triad covers much of the U.S. but it’s possible it will not finance in your area.

With down payments as low as 5% and the ability to refinance loans for manufactured homes, Triad offers custom options that fit many needs for its clients. Triad typically works with real estate agents and manufactured home dealers, but its services are available to any homebuyers looking to buy manufactured homes.

Pros

  • Wide range of financial services, including lending, insurance, and investment management
  • Personalized financial planning and advice
  • Competitive interest rates and terms

Cons

  • Not available in all geographic locations

Benefits of Buying a Manufactured Home

In today’s market of ever-rising prices, purchasing a manufactured home has several advantages. 

  • Affordable: The housing market can seem out of control as prices continue to rise, and building materials to purchase a new house make that unattainable for many consumers. Manufactured homes make the dream of homeownership achievable for many people.
  • Consistency and quality: Manufactured homes must be built to certain specifications and approved by the U.S. Department of Housing and Urban Development (HUD). This means a manufactured home has passed several quality-control tests before it goes to market. This allows you to rest with the peace of mind that comes with knowing you didn’t sacrifice safety for affordability. 
  • Customizable: Today’s manufactured homes come with as many options as new site-built homes. For example, some mobile home manufacturers allow you to choose finishes such as countertops and awning materials. You can make a mobile home shine with as much personality as a standard single-family unit with a bit of creativity. 

Considerations With a Manufactured Home

Manufactured homes are a great option for buyers who are on a limited budget, but there are a few things to consider when determining whether purchasing one is right for you.

  • Land status: The decision to own or rent the land your home will sit on will have a big impact on your financing. If you want to use a mortgage loan to buy your manufactured home, you’ll need to also own the land in most circumstances. 
  • Insurance: Insurance costs and coverage must be considered when purchasing your home, as it can change your monthly payment depending on your coverage. A traditional homeowners insurance policy will not cover a mobile home, so you’ll need to seek out a specific insurance plan that covers you. 
  • Interest rates: If you don’t own the land, it’s likely your interest rate will be higher on the purchase of your home, which can greatly impact your monthly payment.

Preparing for a Manufactured Home Loan

If you’re financing a manufactured home, there are a few steps that you can take to ensure that you get the best rates possible. 

  • Check your credit: Credit score plays a major role in your ability to get any type of financing. Check your credit report for errant items and report them before you apply for a loan. 
  • Bring a larger down payment: Mobile home loans may not require 20% down like a conventional mortgage loan, but they do require a down payment of at least 5%. Saving a larger down payment can help you access better interest rates. 
  • Avoid applying for new financing: As your mobile home loan provider checks your credit, avoid applying for new types of credit — like a new credit card or other type of loan. This will keep your application consistent and help you get into your new home sooner. 

Compare Mortgage Loan Providers 

As is the case with any type of loan, it’s important for a homebuyer to know and compare all of your options before you sign onto a mortgage loan. Use the chart below to begin comparing a few of Benzinga’s favorite home lenders.

Finding the Right Financing for Your Dream Mobile Home

Finding the best mortgage lenders for manufactured homes is crucial when embarking on the journey to own your dream home. Manufactured homes offer affordable and versatile housing options, but securing the right financing can be a challenge. By choosing the right mobile home lender, you can access flexible loan programs specifically designed for manufactured homes, ensuring a smooth and hassle-free borrowing experience.

Frequently Asked Questions

Q

Is it harder to get a mortgage on a mobile home?

A

Getting a mortgage on a mobile home is hard because mortgages can only be issued if you own the land and the home is permanently affixed to the land. While there are additional financing options, mobile home loans are rare. 

Q

What is the longest you can finance a mobile home?

A

The longest you can finance a mobile home is 30 years if you own the land as well. If not then a 25-year loan is possible.

Q

How much down payment do I need for a mobile home mortgage?

A

The down payment required for a mobile home mortgage can vary. It usually ranges from 5% to 20% of the purchase price, depending on factors such as your creditworthiness and the loan program you choose.

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.

About Sarah Horvath

Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.