Mobile Home Loans

Are you looking to purchase a mobile home and need a loan to do so? When it comes to mobile home loans, it can be difficult to secure financing with bad credit. But don’t worry, there are options available. In this blog article, we’ll discuss the best mobile home loans for bad credit in 2023 and provide tips for getting approved for a mobile home loan.

Mobile Home Loans and Bad Credit

Mobile homes also referred to as manufactured homes, are a great option for those looking for a more affordable home. They are typically built in a factory, then moved to their final destination and set up on a permanent foundation. They are often less expensive than traditional homes, which is why they can be a great option for those with bad credit.

When it comes to securing financing for a mobile home, it can be difficult with bad credit. However, there are lenders that offer mobile home loans for those with bad credit. It’s important to understand your credit score and what lenders may accept as acceptable credit.

Understanding Your Credit Score

Your credit score is a three-digit number that gives lenders an indication of your creditworthiness. It’s based on information from your credit report, which is a record of your credit history. The higher your credit score, the better your chances of getting approved for a loan. Generally, a credit score of 580 or higher is considered to be good credit.

Types of Mobile Home Loans

There are several types of loans available for those looking to purchase a mobile home. These include FHA, VA, and conventional loans. Generally, FHA and VA loans are easier to qualify for, as they have less stringent requirements.

Conventional Loans

Because mobile or manufactured homes are not considered real property, most lenders will not make you a standard loan. However, if you have a manufactured house that fits certain conditions, conventional mortgage lenders may be able to help. Freddie Mac and Fannie Mae do provide specialist loans. We will discuss two special programs further down, but we also provide ordinary conventional loan financing for prefabricated houses that have been permanently affixed to land and converted to real property.

Freddie Mac and Fannie Mae

Although not all lenders fund manufactured homes, some may. Fannie Mae and Freddie Mac both have programs that allow buyers to finance manufactured houses for up to 30 years with as little as a 3% down payment. However, in order to qualify, your home must meet very precise standards. For example, the residence may or may not have a minimum square footage requirement and cannot be built on leased land, among other things.

Although not all lenders will finance mobile or manufactured homes, Fannie Mae and Freddie Mac both offer loan options for suitable properties.

FHA Mobile Home Loans

FHA loans are insured by the Federal Housing Administration and are designed to help those with bad credit get financing to purchase a home. With an FHA loan, you may be able to qualify with a credit score as low as 580. However, you may need to make a larger down payment if your score is below 620.

These loans typically come with lower interest rates and may require a lower down payment than conventional loans. However, they do require an upfront mortgage insurance premium (MIP).

VA Mobile Home Loans

VA loans are insured by the Department of Veterans Affairs and are designed to help those who have served in the military and their families. These loans typically come with lower interest rates and are easier to qualify for than conventional loans.

The minimum credit score required for a VA loan is 620, but you may be able to qualify with a lower score if you have a larger down payment. These loans also require an upfront funding fee, which can range from 1.25% to 3.3% of the loan amount.

Chattel Loans

A chattel loan can be used to purchase various types of property such as vehicles, yachts, and mobile homes. These loans often have shorter periods and smaller loan ceilings than standard mortgages, and they also use the property being financed as collateral for the loan. This implies that if you miss a payment, your home may be confiscated to satisfy the debt, which can be dangerous.

Nonetheless, they remain a popular financing option for mobile, manufactured, and even modular homes.

Personal Loans

If all else fails, a personal loan might be used to finance your prefabricated or mobile home. Personal loans do not have the same limits on how your house is built, therefore you may be able to qualify for a personal loan even if your house is a fully movable mobile home that is not tied to a permanent base. Some lenders will provide customers with a personal loan of up to $100,000, which may be more than enough to finance a manufactured house.

However, keep in mind that if you have bad credit, this alternative may cost you. Personal loans with bad credit may have higher interest rates (north of 20% in some situations).

Mobile Home Loans With a 575 Credit Score

If you have a credit score of 575 or lower, it can be difficult to get approved for a loan. However, there are lenders that specialize in bad credit loans. These lenders may be more flexible when it comes to credit score requirements, but they may also charge higher interest rates and fees.

It’s important to shop around and compare lenders to find the best deal. You may also want to consider working with a credit repair agency to try and improve your credit score before applying for a loan.

Is it Harder to Get a Mortgage for a Mobile Home?

Yes, it can be more difficult to get approved for a mortgage for a mobile home than for a traditional home. This is because mobile homes depreciate more quickly than traditional homes, making them less attractive to lenders. Additionally, lenders view mobile homes as more of a risk, and as such, may require a larger down payment and higher interest rates.

What is the Longest You Can Finance a Mobile Home?

The longest you can finance a mobile home is typically 15 years. However, you may be able to get a longer loan term if you have a good credit score.

What is a Good Credit Score to Buy a Mobile Home?

A good credit score to buy a mobile home is generally 580 or higher. However, you may be able to qualify with a lower score if you have a larger down payment.

What Type of Loan is Best for a Manufactured Home?

The type of loan that is best for a manufactured home depends on your credit score, financial situation, and other factors. Generally, FHA and VA loans are the best options for those with bad credit, as they are easier to qualify for.

The Difference Between Manufactured And Mobile Homes

Before we go into financing, we need to define the distinction between a mobile home and a manufactured home, as the terms are sometimes used interchangeably. A mobile house is a prefabricated residential building erected on a permanent chassis before June 15, 1976.

A manufactured home is a construction that was constructed after June 15, 1976. In 1976, the United States Department of Housing and Urban Development (HUD) implemented new safety criteria for mobile homes and renamed these constructions “manufactured” rather than “mobile.”

The primary distinction between manufactured and mobile houses is that manufactured homes adhere to HUD’s new safety rules, whereas mobile homes were built previous to their introduction. Mobile homes were also frequently designed to be easily moveable, although many manufactured homes are not designed to be moved once erected.

How Much is a Trailer Home?

The cost of a trailer home can vary greatly depending on size, location, and other factors. Generally, trailer homes range from $20,000 to $100,000.

Tips for Getting Approved for a Mobile Home Loan

Getting approved for a mobile home loan with bad credit can be challenging, but there are steps you can take to increase your chances of getting approved.

  • Improve Your Credit Score: Before applying for a loan, it’s a good idea to try and improve your credit score. Work with a credit repair agency or take steps to pay down your debt to increase your score.
  • Know Your Finances: Make sure you understand your financial situation before applying for a loan. Calculate your debt-to-income ratio and know how much you can afford to pay each month.
  • Shop Around: Don’t settle for the first loan you find. Shop around and compare lenders to find the best deal.
  • Get Pre-Approved: Before you start shopping for a home, it’s a good idea to get pre-approved for a loan. This will give you an idea of how much you can borrow and will make the process of finding a home much easier.
  • Make a Large Down Payment: Making a large down payment can help you get approved for a loan, as it reduces the amount you need to borrow.

Considerations When Purchasing a Mobile Home

Now that you know how to buy a mobile home or manufactured home, you’ll want to think about a few things to ensure you get the best deal, such as location, size, and whether you want to buy a new or used property.

#1. Location

Mobile houses and manufactured homes, like regular residences, are all about location. Before you do anything else, decide where you want to put your mobile home. The site you select will have a significant impact on the rest of the procedure.

“Buying a mobile home and finding the proper site is similar to buying a house,” Sexton explained. “A decent neighborhood is essential.”

One alternative is to build the house on land you already own. You may also choose to purchase the land on which your mobile home will be built. Just make sure that the zoning regulations allow for the placement of mobile homes on the lot you own or want to buy. Additionally, ensure that the land is suitable for mobile homes and that the local utilities are capable of connecting a mobile home.

Another possibility is to rent a plot of land in a mobile home development. This needs less money upfront but adds a monthly lot rent fee to your dwelling expenditures. Check with the community manager for restrictions on home features and size, as well as available plots.

#2. Size

Because mobile homes and prefabricated homes come in a variety of sizes, you’ll need to plan ahead of time. Larger homes are more expensive to build and necessitate larger properties. As a result, if you want a larger property, you may need to borrow more.

The width of a mobile home is typically used to classify it. The terms single-wide or single unit and double-wide or double unit may be used. Single-wide homes are somewhat less than 15 feet wide, whereas double-wide homes are twice that size. Both are typically 70 feet long.

#3. Whether new or used

Mobile and manufactured homes, unlike traditional real estate, tend to lose value over time. This implies you can save money if you buy a used mobile home. The disadvantage is that used mobile homes can show indications of age unless they have been thoroughly maintained.

You should also conduct a preliminary study on the spot where you intend to locate the mobile home. Some areas will not allow the placement of dwellings built before a certain date, limiting your possibilities.

When purchasing an older mobile home, you will almost certainly need to hire someone with knowledge and inspection abilities to ensure you get a good deal.

Remember that not all prefabricated or mobile houses are created equal. Take the time to consider all of your alternatives in order to make the greatest choice for your lifestyle and budget.

#4. Long-term expenses

Ownership, like any other sort of housing, involves long-term costs. One of the costs to consider when purchasing a mobile or manufactured home is the cost of mobile home insurance.

This form of policy, like conventional homeowners insurance, protects you if your home is destroyed or requires repairs. Often, policies will cover both the house and your personal goods if they are destroyed or stolen. You can also get insurance with liability coverage, which can protect you if someone gets hurt on your property and you are found accountable.

Hurricanes, earthquakes, and floods are often not covered by standard mobile home insurance and may require an add-on.

The cost of mobile home insurance premiums, like that of regular homes, fluctuates according to your coverage level.


Getting approved for a mobile home loan with bad credit can be challenging, but it is possible. It’s important to understand your credit score, shop around for lenders, and take steps to improve your credit before applying for a loan. By following these tips, you can increase your chances of getting approved for a mobile home loan.


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