The Duration of Manufactured Home Financing: What You Need to Know

The manufactured home industry has seen significant growth in recent years, with more and more people choosing these homes as an affordable alternative to traditional stick-built houses. As a result, the demand for financing options for manufactured homes has also increased. If you are considering purchasing a manufactured home, it is important to understand the duration of the financing process and the various options available to you.

The Basics of Manufactured Home Financing

Manufactured home financing is similar to traditional home financing in many ways. The primary difference is that manufactured homes are typically built off-site and transported to their final location, whereas stick-built homes are constructed on-site. This difference can sometimes result in stricter lending requirements for manufactured home loans.

When it comes to the duration of manufactured home financing, there are several factors to consider. These include the loan term, interest rate, and type of loan.

Loan Term

The loan term refers to the length of time it will take to repay the loan in full. In the case of manufactured home financing, loan terms can vary depending on the lender and the borrower's financial situation.

Typically, loan terms for manufactured homes range from 15 to 30 years. However, it is important to note that shorter loan terms may result in higher monthly payments but a lower total interest cost over the life of the loan. On the other hand, longer loan terms may result in lower monthly payments but a higher total interest cost.

Interest Rate

The interest rate is another important factor to consider when it comes to the duration of manufactured home financing. The interest rate is the percentage of the loan amount that the borrower pays to the lender as a fee for borrowing the money.

Interest rates for manufactured home loans can vary based on several factors, including the borrower's credit score, loan amount, and loan term. Generally, borrowers with higher credit scores and larger down payments can secure lower interest rates. On the other hand, borrowers with lower credit scores or smaller down payments may face higher interest rates.

Type of Loan

There are several types of loans available for financing manufactured homes. These include traditional mortgage loans, government-backed loans, and chattel loans.

Traditional mortgage loans are similar to those used for stick-built homes and typically offer longer loan terms and lower interest rates. Government-backed loans, such as those insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), may offer more flexible lending requirements and lower down payments.

Chattel loans, also known as personal property loans, are specifically designed for manufactured homes in which the home itself is considered personal property rather than real estate. These loans often have shorter loan terms and higher interest rates compared to traditional mortgage loans.

Factors that Affect the Duration of Manufactured Home Financing

In addition to the loan term, interest rate, and type of loan, there are several other factors that can affect the duration of manufactured home financing.

One of the most significant factors is the borrower's creditworthiness. Lenders consider the borrower's credit score, income, debt-to-income ratio, and employment history when assessing their creditworthiness. Borrowers with stronger credit profiles are typically able to secure more favorable loan terms, including lower interest rates and longer loan terms.

The loan amount and down payment also play a role in the duration of manufactured home financing. Generally, larger loan amounts and smaller down payments can result in longer loan terms and higher interest rates.

Additionally, the lender and loan program chosen by the borrower can impact the duration of the financing process. Different lenders may have different underwriting processes and loan approval timelines, which can affect how long it takes to secure financing for a manufactured home.

Shopping for Manufactured Home Financing

When shopping for manufactured home financing, it is important to do your research and compare loan offers from multiple lenders. This will help you find the best terms, interest rates, and loan programs for your specific needs.

Start by gathering your financial documents, such as bank statements, pay stubs, and tax returns. This information will be necessary for the loan application process. It is also a good idea to review your credit report and take steps to improve your credit score if needed.

Next, reach out to lenders that specialize in manufactured home financing. These include traditional banks, credit unions, online lenders, and specialized manufactured home lenders. Compare their loan terms, interest rates, and lending requirements to find the best fit for your situation.

Once you have selected a lender, complete the loan application and provide any requested documentation. The lender will review your application and financial documents and determine whether or not to approve your loan. If approved, you will receive a loan estimate that outlines the terms and costs associated with the loan.


The duration of manufactured home financing can vary depending on factors such as the loan term, interest rate, and type of loan. It is important to understand these factors and shop around for the best loan terms and interest rates.

By carefully considering your financial situation and working with reputable lenders, you can secure financing for your manufactured home and achieve your goal of homeownership. Remember to compare loan offers, gather necessary documentation, and be proactive in improving your creditworthiness. With the right approach, you can navigate the financing process with confidence and make your dream of owning a manufactured home a reality.

19 October 2023
Written by John Roche