Manufactured homes have come a long way since their “trailer” days. These affordable, factory-built homes offer more quality and style than ever before. New homeowners can virtually custom design their homes with the seemingly endless list of options available.

Over 22 million people across the country have decided to make a manufactured home their way of life, and by the time you finish reading this article, you may make the same decision. Several national mobile home lenders have mobile home financing programs available that offer mobile home loan products to qualified applicants to purchase a new or used mobile home, or, to refinance an existing mobile home loan. Mobile home loans that are offered for homes that are on rented land such as a park are called “chattel mortgages” and mobile homes that are situated on their own land and the lender is financing both the mobile home and the land together is a real estate mortgage. Interest rates are typically higher and loan terms shorter for chattel mortgages since the lender is not securing the real estate with the mobile home.

Typical mobile home financing guidelines to keep in mind:

• Down payments as low as 5% for mobile homes that are in mobile home park’s is available.
• Typically 3 years of employment is required.
• Minimum credit scores of 600 and above, possible exceptions available when purchasing new mobile homes and putting a cash down payment of 40% or more.
• Debt ratio generally cannot exceed 45% for all debts and 34% for housing, this includes the lot rent if the mobile home is in a mobile home park.
• Mobile homes must be built to HUD standards.
• Loan terms up to 240 months for used mobile homes and 300 months for new homes.
• Secondary/Vacation home loan programs are available, although lenders will require a down payment of 20%.
• A mobile home lender will calculate the value of the mobile home by using a book value or an appraisal.