How to Finance a Mobile Home

A couple walking their dog at a mobile home

By: Skyelar Kavanagh

Jan 29, 2025

4 minute read

Summary

Looking to buy a mobile home? Learn about mobile home financing, including options for mobile home loans like conventional, FHA & personal loans.

In this article:

The journey to homeownership may be both thrilling and nerve-wracking, especially considering the many options available. The mobile home stands out as an affordable and versatile choice, offering the freedom to customize your space and in some cases, the flexibility to relocate. Yet, the financing process may seem overwhelming if you’re unsure where to start.

In this article, we’ll navigate the different types of mobile homes and financing options to help you turn your dream of homeownership into a reality.

Mobile home vs. manufactured home vs. modular home: what’s the difference?

These three terms are often used interchangeably and may get a bit confusing when trying to get down to the financing aspect of your home purchase. Let’s break them down below:

Mobile home

A mobile home, or trailer home, is typically constructed on a steel chassis with wheels. These homes were designed to be movable but are often placed on a permanent foundation. Mobile homes built after June 15, 1976, must meet the construction standards set by the Department of Housing and Urban Development (HUD).

Manufactured home

Manufactured homes are factory-built structures constructed after June 15, 1976, following HUD’s Manufactured Home Construction and Safety Standards (HUD Code).¹ Unlike mobile homes, manufactured homes are transported in sections and assembled on-site. They come in various sizes and designs, offering a wide range of options.

Modular home

Modular homes, also known as prefab homes, are also built in factories but adhere to local building codes rather than HUD standards.² These homes are constructed in sections or modules transported to the building site for assembly and are permanently attached to their foundations. Modular homes look very similar to traditional site-built homes once they’re assembled.

Types of mobile home financing

When it comes to mobile home loans, several options cater to different financial situations and eligibility criteria, including conventional loans, FHA loans, VA loans and even personal loans.

Conventional loans

Conventional loans, offered by banks, credit unions and mortgage companies, are not backed by any government agency. These loans typically require higher credit scores and larger down payments compared to government-backed loans. Conventional loans may be available for both the purchase and refinance of mobile homes, but eligibility requirements may vary among lenders.

FHA loans

The Federal Housing Administration (FHA) offers loans tailored explicitly for manufactured homes, providing financing options with low down payments and flexible credit requirements.

The U.S. government ensures FHA loans, making them more accessible to borrowers with less-than-perfect credit. Borrowers must meet FHA loan requirements, including the home meeting HUD standards and being affixed to a permanent foundation. There are two types of FHA loans for manufactured home financing:

Title I loans

Title I loans provide insurance to borrowers to purchase, refinance or make improvements to a manufactured home. This type of loan does not allow borrowers to purchase land.³

Title II loans

Title II loans provide insurance to borrowers looking to finance a qualified manufactured home and the land to place it on.

VA loans

The Department of Veterans Affairs (VA) offers VA loans to eligible veterans, active-duty service members and their spouses that could be used to purchase or refinance manufactured homes. VA loans often feature competitive interest rates, no down payment requirement (in some cases), and no private mortgage insurance (PMI) premiums. To qualify for a VA loan, borrowers must meet the VA’s eligibility criteria and obtain a Certificate of Eligibility (COE).

Personal loans

When traditional mortgage financing is not feasible, a personal loan may be an alternative solution for mobile home financing. Personal loans are unsecured loans that borrowers may use for various purposes, including purchasing a mobile home. However, personal loans typically have higher interest rates and shorter repayment terms than mortgage loans.

Unlock the freedom of homeownership with a mobile home

No matter where you are on your journey to buying a mobile home, it’s important to consider your financial circumstances and explore all available financing options. Whether you’re leaning toward a traditional loan or believe a personal loan better suits your needs, you’ll soon be able to enjoy the flexibility of a space you can truly call your own.

Loan offers from $1,500 to $20,000^†

See offers, apply online and get a response in minutes^‡

Check for offers Checking for offers won’t affect your credit score.

Sources:
1.https://www.bankrate.com/real-estate/what-is-a-manufactured-home/#what-is
2.https://www.bankrate.com/real-estate/what-is-a-modular-home/#mod-vs-manufactured 3.https://www.hud.gov/program_offices/housing/rmra/mhs/faqs

This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.

Frequently asked questions

Here are a few things that affect your eligibility

Financial history Credit history
Income and expenses
Loan purpose
Whether you have filed for bankruptcy
State of residence

Before you close your loan, OneMain will need the following documents from you:

A copy of a valid, government-issued ID (driver’s license or passport)
Your Social Security card
Proof of residence (driver’s license with current address, utility bill, or signed lease)
Proof of income (pay stubs or tax returns)

We may ask for more info based on your unique situation. Take the next step and start your loan application today

From the start of the application to receiving the funds could be as quick as one day.*
Completing the online loan application: Takes just minutes to complete and see your offers*
Signing your loan documents: After final loan approval, signing your closing documents takes about 30-45 minutes.
Receiving your funds: When using your debit card to receive funds, you can get your money as soon as an hour after signing the loan docs.1 Funds can also be paid out by direct deposit (ACH), which are available approximately 1-2 banking days after loan closing. A check can be issued as soon as the same day as the closing.

*Timing may vary based on: when you submit your application, how many documents are needed for approval, and how long it takes for OneMain to receive, review, and verify those documents, and whether your loan is secured by collateral, among other factors.

Are you still wondering "Is a personal loan right for me?" Don't worry – we're here to help. Just call (800) 961-5577 or find a branch near you.

If you're approved for a loan, you may see secured or unsecured next to your offer. A secured loan requires that you provide collateral, like a vehicle. An unsecured loan doesn't require any collateral from you.

Keep in mind that there are eligibility requirements such as the condition and age of your motor vehicle and proof of insurance. Also, if a borrower defaults on a secured loan, the lender has the right to take the collateral.