Mobile Home Financing Companies: Everything You Need To Know

What Exactly Is a Mobile Home Loan?

A mobile home loan is one for factory-built homes that can be placed on the land. The styles range from simple trailers to buildings that look like houses and are permanently linked to the land they sit on.

Mobile home loans differ from traditional property loans in that most lenders and counties consider their personal property rather than real property.

In fact, in many counties, a mobile home is taxed by the department of motor vehicles rather than the property tax assessor.

If you wish to buy a mobile home and install it on leased property, your financing will likely be more like a personal loan. with higher interest rates and terms that are shorter than those of a standard house mortgage

There are, however, exceptions, which we have included in this list. Some home loan companies will finance mobile homes if they are attached to the homeowner’s land.

Others, and fewer of them, will lend on a mobile home even if it is parked on leased land.

What Are the Prerequisites for Obtaining a Mobile Home Loan?

For jumbo loan programs, the lenders we looked at offered loan amounts ranging from $75,000 to $2 million. Most lenders have a debt-to-income (DTI) ratio ceiling in the low 40s.

The lender will determine how much you can borrow based on your DTI and income.

If you qualify for a government-backed lending program, such as the FHA, VA, or USDA, you may buy a mobile home for as little as 3.5 percent down, and in some situations, even less.

You will have more lender alternatives if you own the land or want to acquire the property along with the mobile home than if you want to buy a mobile house on a mobile home park rental lot.

Is it necessary to own your land when purchasing a mobile home?

It is not required to own land when purchasing a mobile home, but it will provide you with more loan options.
Mobile homes are sometimes found in a mobile home park, where the park owner owns the land and leases it to you.

In these cases, the homeowner leases the land but owns the mobile home. Before they lend on the mobile home, many lenders will require you to sign a three-year lease on the land.

Owners of mobile homes can also place them on land they own or land they purchase in conjunction with the mobile home.

When you own both the land and the house, your loan rates and terms will be more favorable, and you will have more lending options.

What is the minimum credit score required to purchase a mobile home?


The lenders we’ve reviewed and chosen as the best can work with credit scores as low as 500 and 600. If you have a credit score of less than 500, you may be disqualified entirely.

Of course, having a higher credit score will always get you better interest rates and terms. Credit scores in the 700s and 800s have the lowest interest rates.

If your credit score is low, seek a lender specializing in USDA, FHA, and VA loans. Conventional loans will be more stringent if your credit score is less than 700. You may be authorized for a loan, but it will have higher interest rates and a period of 20 years or less.


We compared 12 mobile home lenders before settling on the top five. We investigated the company’s history and reputation, as well as whether they funded both new and used mobile homes, as well as their minimum and maximum loan value limits.

Borrower qualifications were also necessary. We looked at companies that permitted consumers with worse credit ratings, larger debt-to-income ratios, and low-down-payment alternatives.

Finally, we looked at loan criteria for whether you rented or owned the property where your mobile home will be placed. You’ll have more lending alternatives if you own the property, but it’s not a deal-breaker.

Because mobile homes depreciate, interest rates start a few points higher than conventional loans in most cases.

We looked at interest rate ranges for lenders to ensure these were cheaper than the higher interest rates on an unsecured personal loan, which is also an option when purchasing a mobile home.

With solid credit and a steady income, financing for only the mobile home can be approved in as little as two weeks.

To Purchase the house and property, and if you use a government low-down-payment scheme, the underwriting time might be extended up to 60 days.

How to Choose a Mobile Home Loan


Learn About the Price of a Mobile Home

According to the U.S. Census Bureau, the average price of a new mobile home in June 2021 was $106,800. A single-wide home costs an average of $70,200, while a double-wide home costs $128,100.

There are various charges to consider when applying for mobile home financing. These expenses include any needed down payment and the cost of renting or purchasing land.

Down payments are generally between 10% and 20% of the entire cost of the property, while some programs offer loans with significantly lower down payment requirements.

Other things to consider include loan closing charges.

Also Read: Financing for mobile homes with bad credit

Lenders for Mobile Homes Comparison

Because mobile home loans differ from typical mortgages, it is critical to choose a lender who supports them.

Here are some things to think about while choosing a mobile home lender:

1- Rates:

The lower the interest rate on a loan, the less you’ll have to pay in interest over time. While interest rates for mobile home loans are sometimes slightly higher than those on traditional mortgages, you should seek a lender with acceptable rates and fees.

2- Loan alternatives include:

If you require a particular mobile home loan or want to use a government-backed loan program, you should ensure that the lender provides such a loan.

3- Down payment requirements:

The down payment requirements for many mobile home loans are variable. If you don’t have a significant down payment saved up, seek a lender who doesn’t need a large down payment.

4- Credit requirements:

If you have bad credit, getting approved for a loan may be more challenging.

However, many lenders are prepared to deal with consumers with harmful to fair credit, so if your credit score isn’t where you want it to be, seek a lender with flexible credit standards.

5- Geographic accessibility:

Because not all lenders operate in all 50 states, you should select a lender who operates in your area.

6- Customer service:

Look for lenders with a history of providing excellent customer service with few complaints.

Apply for a Loan for a Mobile Home

You must follow a few procedures before applying for a mobile home loan. It would be best if you first acquired an estimate for the loan amount you’ll require, which will be decided by your financial situation. by the overall cost of the mobile home you want to buy or build.

You’ll also need to pick what kind of mobile home loan you wish to get. Some government-backed lending programs, such as VA or FHA loans, may require a lesser down payment.

Before applying for a loan, be sure you have enough money saved for a down payment and that you fulfill specific credit score and debt-to-income ratio standards.

If feasible, you should investigate if you can pre-qualify for any loans without hurting your credit. Make sure to obtain estimates from several different lenders so that you can compare them.