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. Some are treated like real estate, while others are treated more like vehicles or personal property. Your trailer could even be registered with the state DMV. 

If your mobile home is classified as personal property, you’ll have access to fewer financing options. If it’s permanently affixed to land you own (or are buying as part of the transaction), you’ll likely have loan options similar to traditional mortgages. 

How lenders classify mobile and manufactured homes

Before offering mobile home financing, lenders consider how the structure is classified. Here are a few key points about classifications as they relate to a loan on a mobile home.

Real property vs. personal property 

The most important factor in mobile home financing is whether the structure is classified as real property or personal property:

• Real Property: The home is permanently attached to land you own and includes a concrete slab or foundation
• Personal Property (Chattel): The home isn’t permanently affixed or sits on leased land, such as in a mobile home park 

When a trailer sits on leased land, it’s generally treated like personal property, which means you won’t have many financing options. Mobile homes that are permanently affixed to land that you own or are buying are eligible for much more favorable loan options. 

Why classification affects your loan options

If your mobile home is considered real property, you may qualify for standard mortgage products, including federally backed loans. Perks of traditional financing include:

• Lower interest rates
• Longer loan terms (15–30 years)
• More flexible underwriting

Depending on the situation, you may also be eligible for down payment assistance programs, which could reduce your out-of-pocket obligations. 

If the mobile home is classified as personal property, you’ll need a personal loan or a chattel loan. These financial products come with:

• Higher interest rates
• Shorter repayment terms
• Stricter approval requirements 

How your mobile home is classified has huge implications when it comes to getting a loan. As such, you need to find that out first before exploring a property further. 

Loan types available for mobile homes

The following are some of the mobile home financing options available to would-be buyers.

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. That means you could purchase a lot for a manufactured home, a lot and the mobile home, or just the mobile home for a lot you already own. 

Title II loans are available for manufactured homes classified as real property. They function more like traditional FHA mortgages. Title II loans tend to offer better terms, but the home must meet stricter standards, including foundation requirements and HUD certification.

In either case, mobile homes that are classified as personal property are ineligible. This may include single-wide trailers or mobile homes on leased land.

Chattel loans

A chattel loan, or chattel mortgage, is a loan for a movable piece of personal property, such as a manufactured home. The chattel, or movable property, is the collateral for the loan. If you default on the mortgage, the lender can repossess the property. 

These loans:

• Are faster to process
• Have fewer property requirements
• Usually come with higher interest rates

A chattel loan is required for mobile homes that aren’t permanently affixed to land. Expect a shorter repayment period and higher interest rates, which means larger monthly payments and less overall buying power. 

Personal loans

In some cases, you may be able to use an unsecured personal loan to purchase or refinance a mobile home. Applying for a personal loan may be a viable option for smaller loan amounts or older homes that don’t qualify for other programs. 

While this option can be more accessible in a pinch, you’ll have to contend with higher interest rates and short repayment periods. Depending on how much you borrow and the lender’s terms, you may have to repay the loan in 60 months or fewer. And since there’s no collateral, you won’t be able to borrow as much, either.

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. 

USDA loans, meanwhile, are available for homebuyers in rural areas. If the mobile home is located in a USDA-eligible area, this type of mortgage can be highly appealing. USDA loans require zero money down. However, putting some cash toward the purchase of the home can make you a stronger applicant. 

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. The same applies to conventional mortgages. 

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. 

Strengthen your credit score today

Kikoff includes several free and paid tools that can strengthen your credit profile. Our platform offers free verified rent reporting and utility payment reporting. Eligible users may also qualify for a credit-builder loan. 

Build credit with Kikoff — no hard credit check to sign up.