Manufactured homes can be financed with the same loan types as other homes, but the home must qualify. Most problems with these loans come from the property, not the borrower. This guide covers what each loan type requires and what to check before you make an offer.
Manufactured vs. modular: know which one you have
A manufactured home is built in a factory on a permanent steel chassis under the federal HUD code. To be financed, it must have been built on or after June 15, 1976. It carries a metal HUD certification label on the outside and an interior data plate.
A modular home is also built in a factory, but to the same state and local building codes as a site-built house. Lenders treat a modular home like any other house, so the special rules on this page don’t apply.
What every loan type requires
- A permanent foundation. The home must be permanently attached, with the wheels, axles, and hitch removed.
- Real estate status. The home and land must be titled together as real property, not as a vehicle or personal property.
- At least 400 square feet of living space.
- HUD label and data plate. Missing labels can usually be replaced with a verification letter, but it takes time.
- No prior moves for most loan types. FHA, USDA, Fannie Mae, and Freddie Mac generally won’t finance a home that was installed or lived in at one site and then moved to another. VA handles this differently, so ask about the specific home.
Loan options compared
| Loan type | Minimum down payment | Key rule |
|---|---|---|
| FHA | 3.5% with a 580 score or higher | Engineer must certify the foundation |
| VA | 0% for eligible Veterans with sufficient entitlement | Must be classified as real estate under state law |
| USDA | 0% for eligible borrowers | Existing homes generally can’t be more than 20 years old |
| Conventional | 5%, or 3% on certain qualifying homes | Credit requirements depend on the program |
FHA loans for manufactured homes
An FHA loan allows 3.5% down with a credit score of 580 or higher. Scores from 500 to 579 require at least 10% down under FHA rules. The foundation must meet HUD’s permanent foundation standards, and a licensed engineer usually has to certify it. The home must be your primary residence.
VA loans for manufactured homes
A VA loan can finance a manufactured home with no down payment for eligible Veterans with sufficient entitlement. VA does not set a minimum credit score. The home must be permanently affixed and classified as real estate under state law, and it must be your primary residence.
USDA loans for manufactured homes
A USDA loan offers no down payment for eligible borrowers in eligible rural areas. Both single-wide and multi-section homes can qualify. USDA now finances existing manufactured homes as well as new ones. An existing home generally can’t be more than 20 years old at closing and can’t have been installed at another site before. Income limits apply. USDA does not set a minimum credit score, though many lenders do.
Conventional loans for manufactured homes
A conventional loan typically requires 5% down on a standard manufactured home. Certain homes built to a higher construction standard can qualify for programs with 3% down. Single-wide homes can qualify if they meet minimum size requirements. Credit requirements depend on the loan program and automated underwriting.
How old can the home be?
Every loan type requires a home built on or after June 15, 1976. Beyond that, USDA is the only program with an age limit: an existing home generally can’t be more than 20 years old at closing. FHA, Fannie Mae, and Freddie Mac set no maximum age. Fannie Mae also removed its former 10-year limit on single-wide homes. A lender can still set its own age limit.
Lender rules can be tighter than program rules
The rules above come from FHA, VA, USDA, Fannie Mae, and Freddie Mac. Each lender can add its own requirements on top of them. Common ones include a higher minimum credit score, limits on single-wide homes, limits on the age of the home, and limits on acreage. Two lenders can give different answers on the same home. Ask about the specific property before you make an offer.
What to check before you make an offer
- Is the HUD label on the home and the data plate inside? Look for the metal tag on the exterior and the paper plate in a closet or cabinet.
- Has the home ever been moved? Ask the seller directly and check the county records.
- How is it titled? If the home still has a vehicle title, it must be converted to real estate before closing.
- Is there a foundation certification? If the seller has one from a prior loan, it can save time.
- Do you own the land? Homes on leased land or in a park are a different kind of financing.
Sources: Fannie Mae manufactured housing product matrix and USDA Handbook 3555, Chapter 13
Frequently asked questions
Can you get an FHA loan on a manufactured home?
Yes. FHA finances manufactured homes built on or after June 15, 1976, that sit on a permanent foundation and are titled as real estate. The home must be at least 400 square feet and be your primary residence.
What credit score do you need for an FHA manufactured home loan?
FHA allows 3.5% down with a 580 score or higher and requires at least 10% down for scores from 500 to 579. Many lenders set a higher minimum score for manufactured homes, so ask about the lender’s own requirement.
Can you get a conventional loan on a manufactured home?
Yes. A conventional loan typically requires 5% down on a standard manufactured home, and certain qualifying homes can use programs with 3% down. The home must be on a permanent foundation and titled as real estate.
Can you get a VA loan on a manufactured home?
Yes. Eligible Veterans with sufficient entitlement can finance a manufactured home with no down payment. The home must be permanently affixed, classified as real estate under state law, and used as a primary residence.
Is a modular home the same as a manufactured home?
No. A manufactured home is built to the federal HUD code on a permanent chassis. A modular home is built to state and local building codes and is financed like a site-built house.
Next step
Before you make an offer on a manufactured home, send me the address. I’ll tell you which loan types it’s likely to qualify for and what documents to ask the seller for. Call 219-695-0369 or text me at 219-758-8072.
