As home prices continue to rise across the U.S., many buyers are exploring more affordable housing options. One increasingly popular choice is the manufactured home, which accounts for roughly 10% of all single-family homes nationwide. Consider this: while the average cost of a traditional site-built home was $391,000 in April 2021, the average manufactured home cost just $100,200—less than a third of the price. That affordability helps explain why over 18 million Americans live in more than 7 million manufactured homes across the country.

If you’re interested in this more cost-effective path to homeownership, you may still need a mortgage. The good news? There are several loan options specifically designed for manufactured home purchases.

What Is a Manufactured Home?

Manufactured homes are built in a factory and then transported to their final location. While you might think of traditional single- or double-wide trailers, today’s manufactured homes include a wide range of styles and sizes, some offering more than 2,000 square feet, multiple bedrooms, spacious living areas, and even porches.

To be classified as a manufactured home, the structure must meet federal HUD building standards, in place since June 15, 1976. These homes are different from modular homes, which are also factory-built but follow state or local codes rather than federal guidelines. Manufactured homes are typically transported on a permanent steel frame and include a trailer hitch and axles for mobility, though they are often removed once installed.

Do All Manufactured Homes Qualify for Mortgage Financing?

Not all manufactured homes meet mortgage eligibility requirements. To qualify, the home must:

• Built after June 15, 1976
• Have at least 400 square feet of living space (some loans require 600+)
• Be permanently affixed to a foundation
• Be placed on land you own or are purchasing (not just renting)

Lenders are generally reluctant to finance homes that can be moved, so permanent installation is key.

What Loan Options Are Available?

Several government-backed and conventional loan programs are available for purchases:

Conventional Loans (Fannie Mae & Freddie Mac)

• Fannie Mae’s MH Advantage® program is ideal for newly built homes from approved manufacturers.
• Minimum 3% down payment
• Competitive interest rates with some risk-based fees
• The home must meet additional design and installation standards

FHA Loans

• FHA Title II loans work similarly to traditional mortgages.
• Down payments as low as 3.5%
• Credit scores as low as 580
• Must meet HUD compliance and be placed on permanent foundations

VA & USDA Loans

• If you qualify, the VA (Veterans Affairs) and USDA (U.S. Department of Agriculture) offer manufactured home loans with 0% down payment and favorable terms.
• These loans often come with fewer fees and competitive rates, but have more stringent property and location requirements.

Manufactured Home Mortgage Takeaway

With the right loan and lender, financing it is entirely possible—and may be a smart, affordable way to enter the housing market in today’s competitive climate.

So, interested in learning more or getting pre-approved? Contact us today. We’d love to help you take the next step toward affordable homeownership.

These materials were not created by or approved by HUD, FHA, VA, or any other government agency.