Understanding Mobile Homes


How Can I Finance a Mobile Home?

Jul 23 2015

Mobile home financing isn’t always easy—depending on your credit, your income, and the size of the mobile home you’re are wondering how to finance a mobile home. You might find that your go-to lenders aren’t eager to make you a useful offer, if they’re willing to work with you at all. Fortunately, there are plenty of solutions out there for making a mobile home your own, giving you the mix of flexibility and consistency only a mobile home can offer.

  • Conventional Home Loans. A traditional home mortgage through a bank is possible in some cases, although most banks have a few conditions they impose on mobile home lending. With most banks, you’ll not be able to secure financing for a single-wide mobile home, regardless of its age, quality, or condition. You’ll also find that if you’re in the market for a used double-wide, most lenders will not want to finance anything older than 15 years.
  • Credit Unions. The majority of mobile home financing occurs through credit union loans, as they’re generally more amenable to this type of medium-sized loan arrangement than a large bank. If you’re not part of a credit union, do a little research—chances are, there’s at least one in your area which would accept you as a member, although there may be a waiting period before you can expect any larger loans to be approved.
  • Financing with the Seller. Many mobile home sellers offer in-house financing solutions for their buyers—just be aware of your other options so you can make a thorough comparison of terms before you accept any terms, as these arrangements can vary from fair and reasonable to highly suspect. These terms will generally be the most flexible, however, as the seller has more control over the situation, more to gain from the transaction, and a better position to adapt.

Other Things to Know

  • Down Payments: As the overall cost of a mobile home is typically lower than that of a traditional home, you can expect to pay a lower down payment than with a traditional single-family home. Conventional loans often come in between 5% and 20% of the total payment--depending on how you're financing, you'll likely pay less up front if you're also renting a lot.
  • Interest Rates: Often, interest rates on mobile homes end up slightly higher than those for traditional mobile homes, so it’s important to stay on top of your payments regardless of how you obtain mobile home financing.
  • Insurance: Most lenders will require you to secure your investment with mobile home insurance, so calculate that cost into your expectations.