Areas of Concern

• Lenders will look at a number of factors when financing a manufactured home. The placement of the home is one area of interest. Homes placed on a permanent foundation are easier to finance. Locating the manufactured home on land owned by the borrower or included in the loan will also make arranging financing easier. As with any loan, the buyer's credit score, amount of down payment, and ability to pay back the loan are all figured into the financing calculations.
  
  

FHA and VA Loans

• Both the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) insure loans for manufactured homes. Loans insured by either of these authorities will offer lower rates and lower down payment requirements than most other loans. Loan requirements for income may be lower for FHA or VA loans as well. Though the application and approval processes for these loans are more in-depth and time consuming, buyers should seek FHA or VA loans as a first choice regardless of the lender.
  
  

Traditional Lenders

• Traditional lenders will typically offer the best interest rates for manufactured homes, but they are the least likely to approve the financing. Banks and credit unions will only provide mortgage lending for manufactured homes that meet their specific criteria. If unable to write a mortgage loan, the bank or credit union may offer a personal property loan to purchase a manufactured home. Personal property loans often have higher interest rates and shorter terms than traditional mortgages but still may be a viable option.
  
  

Specialized Lenders

• A number of lenders specialize in underwriting loans for manufactured homes. Manufactured home dealers often work with a number of these lenders and can help borrowers to arrange financing. Some dealerships may include incentives for using their lenders, but they should not require buyers to use them. Lenders specializing in manufactured homes often write loans with higher rates than the borrower can get from banks or credit unions. Buyers should determine what terms the specialized lenders can offer and compare them against traditional lending sources.