Getting a loan for a manufactured home can be difficult, but it's possible. Banks are less likely to give out loans for manufactured homes due to the fact they're mobile. A home built on-site receives a title of "real property" because it's affixed to a permanent surface. Unfortunately, manufactured homes are considered "personal property" due to their mobile nature. This classification is why banks are less likely to give loans for manufactured homes.
The Federal Housing Administration (FHA) has a list of certified lenders that are willing to give to borrowers. The only downside is that these terms are much less generous than that of traditional mortgages. To qualify, there are also a number of requirements that you need to fulfill. One provision includes the home manufacturing date, which must be after June 15th, 1976. Another is that the manufactured home must follow the Model Manufactured Home Installation Standards. Through this program, you can get a loan up to $69,678 to finance your mobile home.
If you choose not to go through FHA due to lack of eligibility or otherwise, you'll have to search for a "personal property" loan. These loans are most often called "chattel" loans and offer much less generous interest rates when compared to traditional mortgages. Chattel mortgages are specifically designed for homes that are mobile and never intend to be permanently affixed to a foundation.
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