A mobile home, sometimes known as a manufactured home, is a movable, prefabricated construction that may be transported to a location and used as a permanent residence. More than 17.5 million people call prefabricated houses their primary residence in the United States. Mobile homes are also referred to as manufactured homes sometimes.
How to Obtain Financing for Your Mobile Home
The steps involved in acquiring a loan for a mobile home are distinct from those involved in acquiring a loan for a conventional house. This is primarily due to the fact that most people who own mobile homes do not actually own the property on which their homes are situated. Because they own the home outright and pay rent for the lot, it sits on, the mobile home is considered to be real property. Consequently, to finance your mobile home purchase, you will most likely require a personal loan rather than a conventional mortgage. In comparison to mortgages, these loans often come with a higher interest rate and a shorter amount of time over which the borrower must repay the debt. We looked at more than ten different mobile home loans and selected the best four out of the bunch. We did this because the majority of people who wish to buy a mobile home will need a loan to do so. We selected the top mobile home loans on the basis of the types of mobile homes they finance, the coverage area they serve, the mobile home loan options they provide, and the reputation of the lending firm. Continue reading to find out which mobile home loan best suits your needs.The Financing Options Available for Mobile Homes:
- HIGHLY RECOMMENDED OVERALL: Manufactured Nationwide
- HIGHLY RECOMMENDED RUNNER-UP: Vanderbilt Mortgage and Finance
- HIGHLY RECOMMENDED FOR THOSE WITH POOR CREDIT: The 21st Mortgage Corporation
- HIGHLY RECOMMENDED FOR LOW OR NO DOWN PAYMENT: eLEND
HIGHLY RECOMMENDED OVERALL: Manufactured Nationwide
- AVAILABILITY: All 50 states in the United States
- MINIMUM CREDIT SCORE THAT IS REQUIRED: 620
Why do we recommend it?
Our choice for the top mobile home lender title overall goes to Manufactured Nationwide. It provides individualized assistance to assist you in locating the most suitable financing for your prefabricated home and specializes in providing loans for a variety of mobile home types.Manufactured Nationwide advantages and disadvantages
The advantages of Manufactured Nationwide
- Loans for new purchases are available in each of the 50 states.
- Financing is available up to one hundred percent.
- Specializes in mobile home financing
The disadvantages of Manufactured Nationwide
- It is not easy to view the terms and rates online.
Overview
Manufactured Nationwide is a lender that operates in all 50 states and has a combined expertise of over 100 years in the manufactured home loan industry. Its mission is to offer loans to individuals who might not qualify for financing elsewhere. They do not only have a division that focuses on prefabricated and mobile home loans as other lenders do. Instead, the entire firm focuses on providing financing for these kinds of homes. Because it offers affordable fixed rates, lends in all 50 states, and provides loans for a variety of mobile home types, we found that Manufactured Nationwide was the best option for us when looking for a mobile home loan provider overall. In addition to that, their method is relatively prompt. The process of obtaining a loan and closing on your new home typically takes thirty to sixty days to complete. Unfortunately, Manufactured Nationwide has stopped issuing one-time close construction loans for manufactured homes. However, they will continue to provide these loans for actual modular prefab and stick-built properties, and there are other options for construction loans for mobile homes.The following are examples of the services and features offered by Manufactured Nationwide:
- Home loans for manufactured and modular construction, both new and secondhand
- Mobile home financing for single-wide, double-wide, and triple-wide manufactured homes.
- You will have the assistance of one senior banker throughout the entirety of the buying process.
- Construction loans
- Provides loans backed by the government to its customers, such as FHA and VA loans, to qualifying homeowners whose homes must be permanently anchored to land that they own.
Conditions for obtaining a loan and interest rates for Manufactured Nationwide:
- Loan amounts start at $100,000 for improvements and go as high as $1.5 million for acquisitions.
- The Veterans Affairs loan requires no down payment, while the Federal Housing Administration loan requires a down payment of 3.5%.
- The lowest possible FICO score is 620.
HIGHLY RECOMMENDED RUNNER-UP: Vanderbilt Mortgage and Finance
- AVAILABILITY: All 50 states in the United States
- MINIMUM CREDIT SCORE THAT IS REQUIRED: 580
Why do we recommend it?
The company Vanderbilt Mortgage and Finance, Inc. (VMF) is our runner-up pick for best overall since it provides loans in all 50 states, has loans with lengthy repayment durations, and has flexible qualification conditions.Vanderbilt Mortgage and Finance advantages and disadvantages
The advantages of Vanderbilt Mortgage and Finance
- Loan lengths are available for up to 30 years.
- Low minimum credit score required (580)
The disadvantages of Vanderbilt Mortgage and Finance
- The feedback from customers is inconsistent.
- Payment in advance is required.
Overview
A national lender that specializes in providing finance for manufactured houses is called VMF. It is a Berkshire Hathaway firm and has a relationship with Clayton Homes, which is primarily in the business of building manufactured homes. It was first founded in 1974, and since then, it has successfully closed more than 200,000 loans. We chose VMF as our runner-up for the best overall mobile home loans because it provides loans across the country, has competitive interest rates, and has flexible loan requirements. Its partnership with Clayton Homes makes it simpler for customers to go through the process of purchasing a home. After you are done signing all of the necessary paperwork, the closing for your property can typically be scheduled for three days later.The following are some of VMF's services and features:
- Loans are available for prefabricated and mobile homes, both new and old
- Loans for home upgrades, including money to use toward making the home more energy-efficient
- The processing of payments for conventional loans
- Loans with fixed rates, loans with adjustable rates, and loans backed by the FHA
- Traditional mortgages are available.
The following is an outline of the VMF's pricing and loan requirements:
- Loans start at $10,000
- The bare minimum required for a down payment is 3.25 percent.
- The minimum required FICO score ranges from 580 to 620 points, depending on the kind of loan.
- The ratio of debt to income is approximately 40 percent.
- The interest rate ranges anywhere from 5 to 10 percent on average.
- The loan period can be anywhere between 15 and 30 years.
HIGHLY RECOMMENDED FOR THOSE WITH POOR CREDIT: The 21st Mortgage Corporation
- AVAILABILITY: 46 states of the United States
- MINIMUM CREDIT SCORE THAT IS REQUIRED: 575
Why do we recommend it?
The 21st Mortgage Corporation is our top recommendation for borrowers with poor credit because it provides loans to qualified borrowers with credit scores as low as 575.21st Mortgage Corporation advantages and disadvantages
The advantages of 21st Mortgage Corporation
- Financing is available up to one hundred percent.
- Low minimum credit score required (575)
The disadvantages of 21st Mortgage Corporation
- The feedback from customers is inconsistent.
- Availability is restricted in all fifty states.
Overview
The 21st Mortgage Corporation conducts business in 46 states and the District of Columbia, with the exception of the states of Alaska, Hawaii, Massachusetts, and Rhode Island. In 1995, it was established in Knoxville, Tennessee, with a workforce of four. Over the course of the previous 25 years, the number of employees has increased to over 800. Clayton Homes purchased the company in 2003, and today 21st Mortgage Corporation owns and services more than 180,000 mortgages with a combined value of more than $9 billion. Borrowers are not required to have a minimum FICO score in most states. Additionally, it offers mobile home loans in mobile home parks, which is a service that not all lenders offer. Due to this, we have chosen it as the best mobile home loan for borrowers with bad credit. This is because most states do not require borrowers to have a minimum FICO score. The closing process for home-only loans typically takes between four and six weeks, while the closing process for loans that include land can take up to eight weeks.The following are some of the products and services offered by 21st Mortgage Corporation:
- Home loans for mobile and prefabricated houses, both new and used, are available.
- Insurance for automobiles and mobile homes
- Home loans for properties situated in manufactured home communities
- Home loans available for properties with both permanent and temporary foundations
- Innovative financing programs that accept cash, the equity in the borrower's land, or exchanges as down payments
The following is a list of the prerequisites for loans as well as the pricing offered by 21st Mortgage Corporation:
- Loans start at $14,000
- There is a range from 0 percent to 35 percent for the amount of the down payment, and it can be made up of cash, trade, or even land equity.
- The standard minimum for a FICO score is 575.
- The ratio of debt to income ought to be lower than 43 percent.
- The interest rate ranges from 5 percent to 10.99 percent on average.
- The loan term length is different for each form of a loan.
- There are loan solutions available with no initial payment required for eligible mortgages used to purchase primary residences.
HIGHLY RECOMMENDED FOR LOW OR NO DOWN PAYMENT: eLEND
- AVAILABILITY: 46 states of the United States
- MINIMUM CREDIT SCORE THAT IS REQUIRED: 620
Why do we recommend it?
eLEND is our top recommendation for mobile home financing with low or no down payments since it allows qualifying borrowers to get approved for up to one hundred percent of the purchase price of a mobile home.eLEND advantages and disadvantages
The advantages of eLEND
- Protracted conditions for making payments
- Down payment help is available
The disadvantages of eLEND
- The feedback from customers is inconsistent.
- Not available statewide
Overview
eLEND is a part of American Financial Resources, Inc. that blends cutting-edge technology with educational resources in order to streamline the mortgage application process. The company's headquarters are located in New Jersey. It is the company's goal to offer reasonably priced housing financing choices to both first-time buyers and current homeowners. Because it offers a variety of loans, including government-backed loans with down payments as low as 0 percent and other loan programs offering down payments of up to 3.5 percent with down payment assistance for qualified borrowers, we decided that eLEND was the best option for us when it came to finding a mobile home loan with a low or no down payment. It's possible that eLEND's mobile home loan is the most suitable option for you, even if you do not have a significant amount of cash saved up for a down payment.eLEND provides the following services and functionalities, among others:
- Mobile home loans
- Home equity loans for second homes
- Home loans for multiple families
- Investment properties Refinances
The following is a list of the prerequisites for loans and the prices associated with eLEND:
- In most cases, loans can run as high as $400,000.
- The first deposit ranges from 0 to 3.5 percent, and assistance with the initial deposit is available from several programs if you meet the requirements.
- The standard minimum for a FICO score is 620; however, having a score of 660 or above will make you eligible for additional loans.
- The ratio of debt to income is approximately 41 percent.
- When applying for a loan through the VA or USDA, the average interest rate is 2.5 percent.
- The terms of loans are typically set for 30 years.
The Most Highly Recommended Mobile Home Loans For You - the bottom line
There are key operational differences between financing a house and a mobile home. These lenders provide a number of options with rates and conditions comparable to one another for borrowers interested in purchasing a mobile home. If you are in the market for a new home, it is in your best interest to investigate the mortgage offerings of multiple financial institutions. When you are browsing around for a loan, you must consider the different kinds of loans available, the terms offered, the rates offered, the credit score criteria, and other aspects such as how each lender performs in terms of customer service. If you do so, you will be able to identify the most suitable financial choice for your circumstances.Frequently Asked Questions (FAQs)
What Is a Loan for a Mobile Home Exactly?
A mobile or manufactured home loan is referred to as a mobile home loan. This type of loan is used to finance the purchase of the home. The most common financing for mobile homes is personal loans, loans secured by the government (such as VA and FHA), and chattel loans. Mobile homes are often not eligible for conventional loans unless they are permanently anchored to land that the homeowner owns and are not located in a mobile home park. The financing of mobile homes situated on leased land or in mobile parks is possible with certain types of mobile home loans. Some jurisdictions demand that you own the land on which the mobile home is situated, in addition to the need that the mobile home is permanently affixed to the land.Who Should Consider Getting a Loan for a Mobile Home?
If you want to live in a mobile home but do not have the money to buy one outright, you might want to look into getting a mobile home loan instead. If you would like to purchase a home but are unsure whether you would be approved for a loan for a regular home, you can also consider getting financing for a mobile home. It is not a good idea to receive a loan for a mobile home if you are unsure about whether or not it would be beneficial for you to live in a mobile home. It is possible that it would be more beneficial for you first to rent one and determine how well it suits your needs. You might be required to pay cash for the mobile home if you plan on renting the lot, or you might have to take out a personal loan or a loan secured by the mobile home at a higher interest rate.What Is the Minimum Credit Score Required to Obtain a Loan for a Mobile Home?
Remember to obtain a loan for a mobile home. You will need to fulfill a number of obligatory criteria first. You can be eligible for a loan backed by the government with a credit score as low as 500 if the mobile home you want to buy is permanently tied to the property you already own. However, the minimum credit score that is required to qualify for a loan can range anywhere from 620 to 680 points, depending on the lender and the type of loan. Before you apply for a loan, you should have a conversation with your potential lender about the requirements they have.How Much Does It Cost to Get a Loan for a Mobile Home?
The costs associated with financing your mobile home are determined by factors such as the amount borrowed, the type of loan obtained, and the interest rate. Your interest rate will likely be the most expensive cost, ranging from 2.5% for a VA or USDA loan to over 12% for a non-government-backed loan. Your rate will be lower if you qualify for any of these loans. One more expense to take into consideration is the down payment. A down payment of anywhere from 3.5 percent to 35 percent of the total purchase price is required for other types of loans. If you are eligible, many lending programs will not require you to make a down payment; others will even help you pay for it. If you are planning to finance a mobile home that will be placed on a leased lot, you will need to take into consideration the amount that you are paying for the land, as well as the amount that you pay for mobile home insurance and utilities.How to decided on the Best Loans for Mobile Homes?
We analyzed more than ten mobile home loans and chose the top one based on the variety of loans it provides, including loans guaranteed by the government and the kinds of mobile homes it is willing to finance. When selecting our top four mobile home loans, we looked at various factors, including company and third-party evaluations, loan amounts, and eligibility requirements. When evaluating suppliers of loans for mobile homes, we looked for businesses that had strong reputations in the sector, offered speedy loan closings, and offered a variety of financing options.