Can I Get a Loan on My Mobile Home?

If you own or are thinking about buying a mobile home, one of the first questions that's likely to come up is financing. Can you get a loan on a mobile home the same way you would for a traditional house?

The shorter answer is yes. However, the process can get a bit gray, depending on how the structure is classified and where it's located. Here's everything you need to know about getting a loan on a mobile home.

Can I get a loan on my mobile home?

Yes, it's usually possible to get a loan on a mobile home. But the real question is, what kind of loan are you eligible for? Mobile homes don't always qualify for standard mortgage financing.

Loan types available for mobile homes

FHA Title I and Title II loans

FHA Title I loans can be used to buy or refinance a manufactured home, a manufactured home lot, or a combination of the two.

Title II loans function more like traditional FHA mortgages. They tend to offer better terms, but the home must meet stricter standards, including foundation requirements and HUD certification.

Chattel loans

A chattel loan, or chattel mortgage, is a loan for a movable piece of personal property, such as a manufactured home. These loans are faster to process, have fewer property requirements, but usually come with higher interest rates.

Personal loans

In some cases, you may be able to use an unsecured personal loan to purchase or refinance a mobile home. While this option can be more accessible in a pinch, you'll have to contend with higher interest rates and short repayment periods.

VA and USDA loans

If you and the property are eligible, you could apply for a VA or USDA loan. VA loans are available for mobile homes classified as real property, provided you meet the veteran or active-duty service member requirements.

What credit score do you need to get a mobile home loan?

If you're exploring traditional mobile home financing options, such as an FHA or USDA loan, you'll need to meet the same credit score requirements imposed on consumers buying stick-built houses.

For example, the minimum credit score required for an FHA loan is 580. While USDA loans don't have a set minimum, lenders typically want applicants to have a score of 620 or higher.

How to improve your chances of qualifying

If your credit score isn't the best, you can do the following to increase your odds of qualifying:

• Strengthen your credit profile
• Lower your debt-to-income ratio
• Save for a larger down payment
• Choose the right type of property
• Compare multiple lenders

Not sure where to begin? A credit-building platform like Kikoff can put you on the road to a higher credit score.

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