Your Path to Affordable Homeownership

New mobile home financing offers a range of options to help you purchase an affordable, quality home, often with lower down payments and more flexible terms than traditional mortgages. Here’s a quick guide:

  • Government-Backed Loans: FHA and VA loans offer down payments as low as 0-3.5%.
  • Conventional Mortgages: Fannie Mae and Freddie Mac programs start at 3% down.
  • Home-Only Financing: Specialized chattel loans are available for homes without land.
  • Key Requirements: Credit scores typically need to be 580-620+, and some loans require a permanent foundation.

With the median price of traditional homes over $416,900, many families are turning to manufactured homes, which average around $145,200 for a double-wide. Financing a new manufactured home is more accessible than ever, and contrary to old myths, they can appreciate in value just like site-built homes, according to a recent Urban Institute review.

New homes offer significant advantages for financing. They come with manufacturer warranties and meet current HUD construction standards, open uping better loan terms and programs with down payments as low as 0% for qualified buyers. Whether you own land, plan to live in a community, or have credit challenges, there’s a financing path for you. Understanding your options is the first step.

infographic showing comparison between manufactured homes and site-built homes with cost breakdowns, down payment options ranging from 0-3.5%, typical credit score requirements of 580-620, loan terms up to 30 years, and average prices of 145200 for manufactured versus 416900 for site-built - New mobile home financing infographic

Decoding Your New Mobile Home Financing Options

Understanding new mobile home financing is simpler once you know the key distinction: is your home “real property” or “personal property”? This determines your loan options.

keys on loan application - New mobile home financing

Real property financing is like a traditional mortgage. When your manufactured home is permanently attached to land you own, the loan covers both. This usually means lower rates and longer terms.

Personal property financing (often a chattel loan) is for when you own the home but lease the land, like in a community. The home is treated like a vehicle, resulting in different terms and rates.

Owning your land generally provides better financing options, but a path exists for every situation.

Loan Type Down Payment Credit Score (Min.) Loan Term (Max.) Land Requirement (for mortgage-style)
FHA Title I 3.5-10% 500 20 years Not required (can be leased lot)
FHA Title II 3.5% 580 30 years Required (permanent foundation)
VA Loan 0% 580 30 years Required (permanent foundation)
Fannie Mae MH Advantage 3% 620 30 years Required (permanent foundation)
Freddie Mac CHOICEHome 3% 680 30 years Required (permanent foundation)
Chattel Loan 5-35% 575-660 20 years Not required (home-only)
Personal Loan Varies 580-600 7 years Not required (home-only)

Government-Backed Loans: FHA and VA

Government-backed loans are a great starting point for new mobile home financing, offering low down payments and flexible credit requirements.

  • FHA Title I Loans: These are flexible loans for the home, the lot, or both, and can be used even if you’re placing the home on a leased lot. Down payments are as low as 3.5% for those with a 580+ FICO score. You can learn more from HUD’s guide on Financing Manufactured (Mobile) Homes (Title I) | HUD.gov. For a full walkthrough, see our guide on the FHA Mortgage for Manufactured Home.

  • FHA Title II Loans: These function like traditional mortgages, requiring the home to be real property (permanently attached to land you own). With a credit score of 580+, you can qualify for a down payment as low as 3.5% and get loan terms up to 30 years.

  • VA Loans: For eligible veterans and service members, VA loans are an incredible deal, often requiring no down payment. The home must be real property on a permanent foundation. While there’s a funding fee, the benefits are hard to beat. Explore the details in our VA Loan and Manufactured Homes guide.

Conventional Mortgage Pathways: Fannie Mae & Freddie Mac

If your new manufactured home will be titled as real property, conventional mortgages from Fannie Mae and Freddie Mac are excellent options.

  • Fannie Mae’s MH Advantage® Program: This program allows for down payments as low as 3%. A key benefit is that these homes appreciate at nearly the same rate as site-built homes, as confirmed by the Urban Institute’s research on Manufactured homes appreciate like site-built homes.

  • Freddie Mac’s CHOICEHome® Mortgage Program: Similar to Fannie Mae’s offering, this program requires a 3% down payment and typically a credit score of 680 or higher. It focuses on quality homes that resemble site-built properties.

These programs help you secure favorable terms. For more on rates, see our resource on Mortgage Rates for Manufactured Homes.

Specialized Loans: Home-Only Financing

When you’re not buying land with your home, you’ll need home-only financing.

  • Chattel Loans: This is the most common type of home-only loan, treating the home as personal property. While interest rates are typically higher and terms shorter (15-20 years), the closing process is often faster and simpler. Credit requirements can also be more flexible.

  • Personal Loans: These are unsecured loans that can be used for less expensive homes but come with high interest rates and very short terms (up to 7 years). We recommend exploring all other options first. To learn more, check out our guide on Interest Rates on New Mobile Homes.

Securing Your Loan and Moving Forward

You’ve explored the options for new mobile home financing, and now it’s time to secure your loan. Preparation is key to a smooth journey, and with the right guidance, you’ll be holding the keys to your new home before you know it.

family in front of double wide - New mobile home financing

Key Factors for New Mobile Home Financing Approval

Lenders look at several factors to ensure a loan is a good fit. Understanding these puts you in control.

  • Credit Score: This is your financial report card. You’ll generally need a 620+ for conventional loans, while FHA and VA loans are more flexible, often starting at 580. Check your reports for free at www.annualcreditreport.com and dispute any errors. If your score needs work, our Credit Repair for Home Loans program can help.

  • Debt-to-Income (DTI) Ratio: This compares your monthly debts to your gross income. Lenders prefer a DTI below 43% to ensure you can comfortably afford payments.

  • Down Payment: This is more accessible than you might think. VA loans offer 0% down, while FHA and conventional programs start at just 3-3.5%. Your down payment can come from savings, a trade-in, or land equity.

  • Land Ownership: Owning the land and permanently attaching the home classifies it as real property, opening up the best mortgage options like FHA Title II, VA, and conventional loans. Learn more in our guide on a Mortgage for Mobile Home and Land. Placing a home on a leased lot means it’s personal property, leading to chattel loans.

  • Home Type and HUD Compliance: The term “mobile home” refers to units built before June 1976, which are hard to finance. New mobile home financing applies to modern manufactured homes built to strict HUD safety and construction standards. This HUD code compliance is your ticket to getting a loan. Modular homes follow local codes and are financed like traditional houses.

The Step-by-Step Application Process for New Mobile Home Financing

Follow these steps for a straightforward application process:

  1. Budget and Pre-qualify: First, determine what you can afford. Then, contact a lender for pre-qualification to get an estimate of how much you can borrow.
  2. Shop and Compare Lenders: Don’t take the first offer. Compare rates and terms from banks, credit unions, and specialized lenders like us to find the best deal.
  3. Gather Your Documents: Be ready with your ID, Social Security card, pay stubs, W-2s, tax returns, and bank statements. You’ll also need details about the home and land.
  4. Submit the Application: Fill out the application completely and honestly.
  5. Underwriting and Appraisal: An underwriter will review your financial profile, and for real property loans, an appraiser will assess the home’s value and ensure it meets program standards.
  6. Closing Day: You’ll sign the final loan documents, pay any closing costs (which can often be rolled into the loan), and receive the keys to your new home!

Your Next Steps to Homeownership in Texas

New manufactured homes are an affordable, practical path to homeownership that appreciate in value just like site-built homes. Your best financing option—whether a government-backed loan, conventional mortgage, or chattel loan—depends on whether you own your land.

At Manufactured Housing Consultants, we specialize in helping Texas families achieve their homeownership dreams. We offer a wide range of financing options for all credit types, guaranteeing the lowest prices from 11 top manufacturers. Based in Laredo, we understand the needs of Texas families.

If your credit score is a concern, our FICO Score Improvement Program is designed to strengthen your financial profile and help you qualify for better terms.

Ready to take the next step? Contact us to explore your financing options in Texas today. We’re here to guide you from dream to driveway. Your new home is waiting.