What is a manufactured home?
Manufactured home. Modular home. Mobile home. They’re all different, but they’re all home. There’s a good chance if you want to buy one, you’ll need financing. That’s where we come in. They’re alternatives to traditional homes, and not all lenders have loans for them. Let’s learn more about mobile home loans and financing options.
Manufactured, modular, mobile. What’s the difference?
We’re so glad you asked. Knowing the differences will help you understand your home financing options.
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Manufactured home
A manufactured home is a factory-built home, on a permanent metal frame (called a chassis), moved in one or more sections to a home site. To qualify as a manufactured home, it has to have been built on or after June 15, 1976, to meet the requirements of the Department of Housing and Urban Development Manufactured Home Construction and Safety Standards (HUD Code). To get a conventional or government loan on a manufactured home, it must be attached to a permanent foundation and hooked up to utilities and a sewage system.
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Modular home
This is the closest thing to a site-built home, and qualifies for traditional financing. Like a 3D puzzle, the pieces of the home are manufactured, taken to the building site, and completed by a builder or contractor. You can either buy it from the builder once it’s complete or nearly complete, or contract to have one built for you. It has to meet the same building codes as a site-built home.
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Mobile home
Unlike a manufactured home, a mobile home can be moved. It’s not eligible for a home loan because it’s considered personal property, not real property like a site-built home. It may be on wheels and not attached to a permanent foundation, and it may be smaller than the minimum square footage required for some manufactured home loans. The good news is that we have mobile home loans, also called chattel loans, which means you can finance a mobile home. We’ll explain more later.
Manufactured home property requirements
To be eligible for a traditional mortgage, a manufactured home has to qualify as real property, equivalent to a site-built home. We’ve already mentioned some requirements, for example being attached to a permanent foundation. Anything that makes it mobile has to be removed, such as wheels, a towing hitch, and axles. Other considerations include making sure your title is properly recorded, and it’s no longer registered with your state motor vehicle department.
Manufactured home and mobile home financing options
Let’s review the possibilities, from conventional and government mortgages to chattel and personal loans.
Are manufactured homes a good investment?
As a mortgage company, we’re not in the business of giving investment advice. That said, we believe strongly in the importance of homeownership. Owning a home is a gamechanger: strengthening communities, creating stability, and building family wealth over time. That’s our kind of investment.
