How to Finance Manufactured Mobile Homes

You can finance a manufactured mobile home.

The value of a manufactured mobile home tends to depreciate over time, making it harder to finance than a more traditional home. Unfortunately, the cost of a new mobile home is usually too expensive for an individual to pay in cash. To face the challenge of finding affordable housing, the U.S. Department of Housing and Urban Development (HUD) insures loans on manufactured homes, making it easier for consumers to finance manufactured mobile homes.

Instructions

1. Prepare a down payment. Even though the cost of a mobile home is often less than that of a traditional home, you'll still need a sizable down payment. Research the cost of the mobile home styles that you like and prepare to pay between 10 and 20 percent of the cost as a down payment.

2. Look for FHA-approved lenders that offer Title 1 loans. The Federal Housing Administration (FHA) is the division of HUD than insures certain loans. Under the Title 1 program, the FHA insures loans for manufactured homes, but only through lenders that it chooses.

3. Apply for your loan. Fill out the necessary paperwork and submit it along with any supporting documents, such as pay stubs or past tax returns.

4. Talk to the manufactured-home dealer if a HUD loan won't cover the full cost. There are limits to how much you can borrow for a manufactured home, including limits for just the home, just the lot, or a combination of the home and the lot. Many manufactured-home dealers offer in-house financing that may work better for you in such situations.

Tips & Warnings

• Loans for mobile homes are typically only available for brand-new homes; if you're looking at used mobile homes, you may have to pay cash for the home.

References

• U.S. Department of Housing and Urban Development: Financing Manufactured Homes