Loan Products · June 1, 2025
Manufactured Home Loans: Financing Options and Requirements
Manufactured homes can be financed with several programs — but the requirements differ significantly from site-built homes. Here is the complete breakdown.
Manufactured homes represent an important segment of affordable housing, particularly in rural areas of Illinois, Indiana, and Florida. Financing them requires navigating specific program requirements.
Manufactured vs. Modular: The Critical Distinction
Manufactured homes: Built entirely in a factory, transported to the site, placed on a permanent or non-permanent foundation. Must meet HUD code.
Modular homes: Built in sections in a factory, assembled on site on a permanent foundation. Treated like site-built homes for financing purposes.
This distinction matters enormously for financing. Modular homes qualify for standard conventional, FHA, and VA financing. Manufactured homes have more restrictions.
FHA Manufactured Home Loans
FHA Title II loans finance manufactured homes that are permanently affixed to land you own. Requirements: home must be built after June 15, 1976 (HUD code compliant), classified as real property (not personal property), on a permanent foundation meeting FHA standards, minimum 3.5% down with 580+ credit.
VA Manufactured Home Loans
VA loans are available for manufactured homes meeting VA minimum property requirements. The home must be on a permanent foundation and classified as real property.
Conventional Manufactured Home Loans
Fannie Mae and Freddie Mac both have manufactured housing programs. Requirements include permanent foundation, titled as real property, and specific property standards.
Chattel Loans (Personal Property)
If the home is on leased land or not permanently affixed, it is personal property — financed through chattel loans at higher rates (6-13%+). These are significantly more expensive than real property loans.
HMS handles manufactured home loans across IL, FL, and IN. Call 309-222-8286.