Manufactured Home Loans
Affordable Financing for Factory-Built Homes
Manufactured home loans through Howell Mortgage Group provide financing for factory-built homes that meet HUD construction standards. Whether you are purchasing a single-wide, double-wide, or modular home on owned land or in a community, Howell Mortgage Group offers conventional, FHA, VA, and chattel loan options tailored to manufactured housing.
What Are Manufactured Home Loans?
Manufactured home loans are financing products specifically designed to purchase or refinance factory-built housing. Manufactured homes are constructed in a controlled factory environment, built on a permanent chassis, and transported to their final location. Homes built after June 15, 1976 must comply with HUD Federal Manufactured Home Construction and Safety Standards.
Financing options depend on whether the home is classified as real property or personal property. When a manufactured home is permanently affixed to a foundation on land the borrower owns, it is treated as real estate and eligible for conventional, FHA, and VA mortgage financing. When the home is not permanently affixed or sits on leased land, it is considered personal property and financed through a chattel loan.
Manufactured homes offer a more affordable path to homeownership compared to site-built construction. Average per-square-foot costs for manufactured housing run 10% to 35% below conventional construction, making these homes accessible to buyers who might otherwise be priced out of the market.
Manufactured Home Loan Requirements
HUD Compliance
The home must be built after June 15, 1976 and have a HUD certification label (red tag) on each section. Homes built before this date are classified as mobile homes and have limited financing options.
Down Payment
Ranges from 3.5% (FHA) to 20% depending on the loan program. Chattel loans may require 5% to 20% down.
Foundation Requirements
For FHA, VA, and conventional financing, the home must be permanently affixed to a foundation that meets local building codes and FHA/VA standards.
Credit Score
FHA requires a minimum of 580. Conventional programs typically require 620 or higher. Chattel loans may accept lower scores with higher rates.
Land Ownership
The borrower must own the land or be purchasing the land and home together for most mortgage programs. Homes on leased land typically require chattel financing.
Home Size and Type
Single-wide, double-wide, and triple-wide manufactured homes are eligible. Minimum square footage requirements vary by lender and program.
How Manufactured Home Loans Work
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Determine Home Classification
Establish whether the home qualifies as real property (permanently affixed on owned land) or personal property (chattel). This determines which loan programs are available. -
Choose Your Financing
Select from FHA Title II, VA, conventional, or chattel loan programs based on the property type, your credit profile, and down payment availability. -
Apply with Howell Mortgage Group
Submit your application along with income documentation, credit authorization, the home’s HUD certification labels, and land ownership proof if applicable. -
Appraisal and Inspection
An appraiser inspects the home and land to confirm value, HUD compliance, and foundation requirements. FHA and VA have additional property condition standards. -
Underwriting and Approval
The underwriter reviews your income, credit, property documentation, and HUD compliance to issue final loan approval. -
Closing and Setup
Close the loan, fund the purchase, and if applicable, coordinate the home transportation, foundation installation, and utility connections.
Benefits of Manufactured Home Loans
Lower Purchase Price
Manufactured homes cost significantly less per square foot than site-built homes, making homeownership accessible at lower income levels.
Modern Quality Standards
Today’s manufactured homes are built to strict HUD standards with energy efficiency, durability, and design features comparable to site-built construction.
Multiple Loan Programs
FHA, VA, conventional, and chattel programs ensure a financing path exists regardless of whether the home is classified as real or personal property.
Faster Occupancy
Factory construction eliminates weather delays and reduces build times. Most manufactured homes can be placed and occupied within weeks of purchase.
Government Backing Available
FHA and VA loans for manufactured housing offer the same low down payment and competitive rate benefits as traditional home purchases.
Who Should Consider a Manufactured Home Loan?
Manufactured home loans serve buyers who want the affordability of factory-built housing with the financing support of structured loan programs. First-time buyers with limited budgets find manufactured homes particularly attractive because the lower purchase price means smaller down payments and lower monthly payments compared to site-built homes of similar size.
Rural buyers benefit the most from manufactured housing options. In areas where site-built construction costs are high or contractors are scarce, a manufactured home on owned land provides comparable living space at a fraction of the cost. USDA loans can even be combined with manufactured home purchases in eligible rural areas.
Veterans and active-duty service members can use VA loan benefits to purchase manufactured homes with zero down payment, as long as the home is permanently affixed to owned land. This combination of VA benefits and manufactured home affordability creates one of the most cost-effective homeownership paths available.
How Does This Compare?
Feature | FHA Title II | VA Manufactured | Conventional | Chattell Loan |
|---|---|---|---|---|
HUD Label Required | Yes | Yes | Yes | Yes |
Interest Rate | Competitive | Lowest available | Moderate | Higher |
Loan Term | Up to 30 years | Up to 30 years | Up to 30 years | 15-32 years |
Credit Score | 580+ | No VA minimum | 620+ | Varies (550+) |
Land Required | Owned + permanent foundation | Owned + permanent foundation | Owned + permanent foundation | Not required |
Down Payment | 3.5% | 0% | 5-20% | 5-20% |