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What Kind of Loan Do You Need for a Manufactured Home?

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Loan Options for Manufactured Homes

If you’re looking to buy a manufactured home, you may be wondering how you’ll finance it. With so many different loan options available, knowing which loan option will work best for your manufactured home purchase and personal finances may not be very clear. This guide will walk you through the most common loans for manufactured homes and how they work so that you can make an informed decision about how to purchase your new manufactured home.

A Quick Overview

You can be eligible for several different types of loans for a manufactured home. The most common are FHA, VA, conventional loans, and portfolio loans. Each type has its own set of benefits, so it’s important to do your research before deciding which one is right for you. Here’s a quick overview of the different types of manufactured home loans available:

FHA Manufactured Home Loans

An FHA Manufactured Home Loan is a loan insured by the Federal Housing Administration. This type of loan is a great option for those purchasing a manufactured home, as they often have lower interest rates and down payment requirements than other types of loans. FHA Manufactured Home Loans are available in both fixed-rate and adjustable-rate options, so you can choose to apply for the loan that best suits your needs.

VA Loans

A VA Manufactured Home Loan is a home loan backed by the U.S. Department of Veterans Affairs (VA). VA Manufactured Home Loans are available to eligible veterans, active-duty service members, and certain reservists and National Guard members. The VA guarantees a portion of the loan, allowing lenders to offer borrowers more favorable terms. VA loans for manufactured homes can be used to purchase a manufactured home and can also be used to refinance an existing home loan.

Conventional Loans

A conventional loan tends to be a popular type of loan for manufactured homes. The reason is that the interest rate may be lower than other types of loans although it usually (but not always) requires a more substantial down payment than other programs to qualify for the lower rate.

Portfolio Loans

A portfolio loan is a loan that is specifically designed by a lender to fit a specific use – in this case, for manufactured homes. Portfolio loans can be a great option for someone that is looking to put a manufactured home on land they already own or to purchase land and have a new home installed at the same time. Most traditional loan programs are not designed for the unique nature of delivering a new manufactured home to raw land, so lenders, such as Cascade, design their own programs to fit the need.

Chattel Home-Only Loans

A Chattel Home-Only Loan is a personal property loan made for manufactured homes that are not permanently affixed to the land (e.g., not situated on wooden pillars, piers, have a basement, etcetera). The main advantage of this loan is that it can be used for both new and used manufactured homes. 

Chattel Home-Only Loans can have terms ranging from 5 to 25 years, making them a great option for those looking to finance their home over the long term. Another advantage of Chattel Home-Only Loans is that they can be used for homes in various settings, including on leased land, in parks, or on your own private property.

Become Pre-Qualified for a Manufactured Home Loan Today!

The manufactured home loan lenders at Cascade Financial Services have offered top-notch loan products to manufactured homeowners around the country since 1999. Start our online pre-qualification process or give us a call at (877) 408-6032 to obtain your manufactured home loan!

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Call us at (877) 869-7082 or complete your online application today!