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The Best Lenders For Manufactured Home Loans

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Let’s face it, finding manufactured home loans can be quite tricky.  Luckily, there are several lenders that are more than happy to lend on a manufactured home purchase. Before we dive into these lenders there are several things you need to consider.

What Kind Of Credit Score Do You Need To Buy A Manufactured Home?

If you search on the internet you will probably find answers that say from 580 to 620 credit score is needed to be approved for a loan. Well let me just say good luck with any credit score below 620. I am not saying it’s impossible. You very well may be able to secure a loan with a 580 credit score, it will just be extremely challenging and you will need a considerable down payment.

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Why Is It Hard To Find Manufactured Home Loans?

Traditional mortgages for manufactured homes are only available to homes that are permanently affixed to your property. This makes it, what is called, real property. If the manufactured home is not permanently affixed to your property or is sitting on leased land, it is not eligible for traditional financing. The manufactured home is then considered personal property and falls into the same depreciative category as a car or boat. Lenders don’t want to lend money on a depreciating property over a long period of time.

However, there other solutions you should know about.

Financing A Manufactured Home With A Chattel Loan

Chattel loans are most commonly used for airplanes, houseboats and farm equipment. They are also an option for a manufactured home loan. A chattel loan is a 30 year loan for movable property and is secured by the property. Rates on manufactured home loans with a chattel loan start around 5.99% but can vary depending on your credit score.

Financing A Manufactured Home Through A Dealership

If you are buying a manufactured home, more often than not, it is from a manufactured home dealership. Most, if not all, offer financing for a manufactured home.  Some dealerships even offer land packages.

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If you plan on securing financing for your home through a dealership you will still need to have your credit in order. That is, unless they offer in house financing.   If given that option, you can have bad credit but should expect the interest rate to be sky high. These model centers generally offer land packages as well. The reason for this it that it’s easier to secure the loan if it is affixed to the land.

Here Are Lenders That Offer Nationwide Manufactured Home Loans

 

manufacturedhome.loan logo

ManufacturedHome.Loan

Pros & Cons:

PROS

  • Offers financing for Manufactured Homes in parks or NOT affixed to land
  • Nationwide Lender
  • Works with eLend for Conventional Manufactured Home Loans

CONS

  • Must have good credit – exact minimum score not published (though with eLend using Traditional options such as VA or FHA Loans can be as low as 600)
  • Offers Chattel Loans which have higher interest rates

Learn More

 


 

elend loans logo

eLend.com

Pros & Cons:

PROS

  • Offers financing with as little as $0 with VA and FHA loans
  • Competitive Rates for 15 and 30 Year Terms
  • Nationwide Lender
  • Works with Manufacturedhome.loan for Chattel Loans to finance Manufactured Homes in Parks or not affixed to Land
  • Credit Scores as low as 600
  • Home can be as small as 400 sqft

CONS

  • Manufactured Home must be permanently affixed to property
  • The loan must cover the land also

Learn More

 


 

Manufactured-Nationwide-Home-Loans-Logo

Manufactured Nationwide

Pros & Cons:

PROS

  • Offer financing for Manufactured Homes permanently affixed to land
  • Nationwide Lender
  • Up to 100% financing even on single wides
  • Up to 100% cash out on double and triple wide refinance

CONS

  • Does not offer financing for Manufactured Homes in parks or NOT affixed to land
  • Home must be no smaller than 600 sqft
  • Minimum Loan amount of $100,000
  • Must have minimum 620 credit score

Learn More

 


 

Vanderbilt Mortgage and Finance

Pros & Cons:

PROS

  • Partnered with the Clayton family of manufactured homes
  • Offers Land and Home Mortgage
  • Nationwide Lender
  • Works with Lower Credit Scores

CONS

  • Minimum credit scores not listed
  • Very little detail provided online

Learn More

 


 

21st Mortgage Corporation

Pros & Cons:

PROS

  • Offer financing for Manufactured Homes in parks or NOT affixed to land
  • Nationwide Lender
  • Finances New and Used Manufactured Homes
  • Minimum Loan Amount as low as $14,000
  • Offers 25 and 30 year terms
  • Works with Credit scores below 575

CONS

  • Only available in 45 states (not available in AK, HI, MA, NJ, RI)
  • Loans will have much larger interest rates

Learn More

 


 

Guild Mortgage

Pros & Cons:

PROS

  • Offer financing for Manufactured Homes permanently affixed to land
  • Nationwide Lender
  • Finances single, double and triple wides
  • Has $0 down loan programs
  • Credit Score as low as 600
  • Ranked #1 in Customer Satisfaction in 2021 by JD Power

CONS

  • Does not offer financing for Manufactured Homes in parks or NOT affixed to land

Learn More


 

Other Manufactured Home Loan Solutions

This is by no means an exhausted list of lenders that provide manufactured home loans. Another great bank in terms of favorable interest rates would be your local credit union. Credit Unions are typically portfolio lenders.

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They hold the mortgage loans internally and do not sell to or have to meet the requirements set by the government backed agencies Freddie Mac and Fanny Mae. This means less money down, flexible terms, and lower credit scores have a better opportunity of being approved.

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