How To Buy A Mobile Or Manufactured Home

The median sales price of houses continues to rise. Because of this, you might worry that you won’t be able to afford a home of your own. But there are another options: a mobile or manufactured home.

The U.S. Census Bureau reported that the average price of a manufactured home was $124,300 in 2023. That’s considerably less than the median sales price of an existing home, which stood at $406,100 in November 2024, according to the National Association of REALTORS®.

Can a manufactured or mobile home help you break into the housing market, even if you can’t afford a traditional single-family home? Here’s the information you need to know about this housing type.

Mobile Vs. Manufactured Homes: How Are They Different?

You might think manufactured and mobile homes are the same thing, but there are some key differences.

A mobile home is a prefabricated home structure built on a permanent chassis before June 15, 1976.

A manufactured home is similar, but, unlike a mobile home, were built on or after June 15, 1976.

The differences lie in the U.S. Department of Housing and Urban Development (HUD) enacting new safety standards for mobile homes in 1976 and changing the name of these structures from “mobile” to “manufactured.” Companies building manufactured homes are required to follow safety regulations enacted by HUD. Mobile homes, which were built prior to these new regulations, might not adhere to the additional safety guidelines. 

Mobile homes were also often built so they could be moved from one location to another with ease, but most manufactured homes aren’t built to be moved after they’ve been assembled.

Are Modular Homes The Same as Manufactured Homes?

You might hear the term modular homes and think they, too, are the same as manufactured homes. Again, though, there are key differences.

Modular homes, like manufactured homes, are built in factories before construction crews assemble them on their permanent site. The similarities end there.

Modular homes follow local building codes and zoning laws, just like traditional single-family homes. They are not governed by the same HUD regulations that manufactured homes must meet.

Are Modular Homes The Same As Manufactured Homes?

Modular homes are often mistaken for manufactured homes. They’re likewise factory-built before being assembled on-site, but that’s perhaps the only notable similarity to manufactured homes.

Modular homes are typically subject to building codes based on location rather than the HUD code, and they fall under local zoning laws. They’re also considered real property once they’re finished.

How To Buy A Mobile Or Manufactured Home In 3 Steps

Financing a mobile or manufactured home can be challenging because most traditional lenders don't provide mortgages for these home types.

You can, though, find loans through programs run by government agencies such as the Federal Housing Administration or companies such as Fannie Mae or Freddie Mac.

Take the following three steps if you want to increase your odds of qualifying for these financing programs:

1. Check Your Credit Score

Your three-digit credit score is a key number when you apply for a mortgage or other loan to buy a manufactured home. This number tells lenders how consistently you've paid your bills and managed your credit in the past. The higher it is, the more likely you are to qualify for a loan at a lower interest rate, something that could save you a significant amount of money over the life of your loan.

Lenders consider FICO^® credit scores -- the score most mortgage lenders use -- of 740 to 799 to be "very good" and those of 800 to 850 to be "exceptional." If your score is in those ranges, you're more likely to qualify for a mortgage with a lower interest rate.

You can get your annual free credit score report from all three national credit bureaus of Experian, Equifax or TransUnion through Annualcreditreport.com. Your bank, credit union or credit card provider might provide also you with a version of your report for free.

Always double-check your report to ensure everything is accurate and correct any mistakes you notice. If everything looks correct, but you’re not happy with the result, pay your bills on time each month and pay off as much of your credit card debt as you can.

2. Save For A Down Payment

Before applying for a mortgage for a manufactured or mobile home, you should save for a down payment, a percentage of your new home's purchase price that you pay upfront to your lender.

Say your lender requires a minimum down payment of 5% of your home's purchase price. If your home costs $150,000, you'd need a down payment of $7,500.

You might qualify for a loan program that doesn't require any down payment. Those are rare, though. Rocket Mortgage® requires a down payment of at least 5% of the purchase price on a manufactured home, although coming up with a larger amount will lower your monthly payment. You'll typically qualify for a lower interest rate, too, if you come up with a larger down payment.

3. Find The Right Lender

Once you’ve decided on a loan type, it’s time to shop for the right lender. Consider speaking with at least three lenders about average interest rates and fees, though lenders won't be able to quote you an exact rate until you officially apply or get pre-approved for a loan.

The more lenders you speak with, the higher your odds of landing a loan with the lowest fees and rates.

How To Finance A Mobile Or Manufactured Home

Ready to apply for a mortgage for a mobile or manufactured home? Here are some options:

Conventional loans: While many mortgage lenders don't work with buyers purchasing mobile or manufactured homes, both Fannie Mae and Freddie Mac offer programs designed to serve these types of buyers. You might be able to find a lender offering Freddie Mac's CHOICEHome Mortgage or Fannie Mae's MH Advantage.

You will need to meet certain requirements. The MH Advantage program, for example, requires that your mobile home has a driveway or a sidewalk that connects to a driveway, carport or detached garage.

Federal Housing Administration (FHA) loans: The FHA provides Title I loans , designed for buyers purchasing just a mobile or manufactured home, and Title II loans, designed for buyers purchasing both mobile or manufactured homes and the land on which they’ll sit. These loans often require lower down payments and are available to borrowers with lower credit scores. You will, though, have to find a mortgage lender offering these programs, as not all will.

U.S. Department of Veterans Affairs (VA) loans: These loans don't require a down payment or mortgage insurance if the home you are buying meets HUD and foundation standards.

VA loans are only available to qualifying veterans and qualifying active-duty members of the U.S. Armed Forces and their surviving spouses. Members and veterans of the National Guard and U.S. Army Reserve who meet certain eligibility requirements can also qualify for these loans.

Chattel loans: If you are struggling to find a traditional mortgage, you can also apply for a chattel loan. These loans are designed for buyers purchasing movable properties such as mobile homes or manufactured homes that are not tied to land. Chattel loans are often easier to qualify for than traditional mortgage loans. But they usually come with shorter terms and higher interest rates.

Personal loans: Depending on the price of your mobile or manufactured home, you might be able to finance it with a personal loan. The challenge? Personal loans typically come in lower amounts, so you might not be able to cover your mobile home if its price tag is too high. Personal loans usually come with higher interest rates, too, making it a more expensive way of financing the purchase of a manufactured or mobile home.

FAQs About Mobile or Manufactured Home Purchases

Still have questions about buying a manufactured or mobile home? Here are answers to some of the more common.

Can I buy a mobile home with no money down?

This depends. If you apply for an FHA loan, you’ll need a down payment of at least 3.5% of your home’s purchase price if your FICO^® credit score is at least 580. Chattel loans, too, typically require a down payment that varies by lender. You won’t need any down payment if you can qualify for a VA loan to buy a manufactured or mobile home. If you can finance your home purchase with a personal loan, you also won’t need a down payment, as these loan types don’t require borrowers to put money down upfront.

Can I still get financing if I’m purchasing a single-wide home?

Usually. But you might have to search for the right lender. Some require borrowers to purchase homes with a minimum amount of square footage. If the home you want to buy is too small, you might have to search for a different lender.

Can I get a mortgage on a mobile home?

Yes. But it can be more challenging than applying for a mortgage for a single-family home. Many traditional lenders don't provide mortgages to borrowers looking for mobile or manufactured homes. You might have to search for a lender willing to provide the financing you need.

Do I need homeowners insurance to purchase a mobile or manufactured home?

This insurance isn't required to own a manufactured or mobile home. Most lenders, though, require that you take out a policy before they approve you for a mortgage or chattel loan. Unless you are paying cash or financing your home with a personal loan, you'll probably need homeowners insurance.

The Bottom Line

While it’s true that many lenders won’t provide financing for mobile or manufactured homes, this doesn’t mean that you’ll need to pay cash for these properties. You have options, including searching for lenders who will loan you dollars for a mobile or manufactured property.

If you’re thinking about purchasing a manufactured home, start the mortgage approval process with Rocket Mortgage. You can also call us at (833) 326-6018 to learn more about your financing options.