What Is an FHA Manufactured Home Loan?
An FHA loan and manufactured home program helps families buy or refinance a home. The loan is backed by the Federal Housing Administration. This makes it easier to qualify than many bank loans.
An FHA loan and manufactured home program is perfect for families who want to buy or refinance a home. It is backed by the Federal Housing Administration, which makes it easier for homebuyers to qualify for than many bank loans.
You can use it for the home, the land, or both. That is why many buyers pick FHA loans and manufactured homes when they want an affordable option.
Benefits of FHA Manufactured Home Loans
There are many reasons people choose FHA financing manufactured homes:
- Low Down Payment – Only 3.5% if your credit is good.
- Easier Approval – People with fair credit can still qualify.
- Long Terms – Pay over 20–25 years.
- Flexibility – Use it for just the home, just the land, or both.
- Lower Rates – Often better than personal or chattel loans.
- Equity Growth – If you finance land and home, you build value over time.
These benefits make FHA financing for manufactured homes a strong choice for many families.
How FHA Financing Works: Title I vs. Title II
There are two loan options.
Title I Loans
- Pay for the home, the lot, or both.
- Works if you rent or lease the land.
- Up to 20 years for a home, 25 years for home plus lot.
Title II Loans
- For homes on land you own.
- Must be set on a permanent foundation.
- Follows stricter FHA rules.
- Good for long-term living.
If you want an FHA loan for manufactured home and land, Title II may be the best choice.
Why Choose an FHA Manufactured Home Loan?
An FHA manufactured home loan is one of the simplest ways to buy or refinance a manufactured home. It offers lower down payments, longer terms, and options to finance the home, the land, or both together.
For deeper reading, explore the FHA Title 1 Manufactured Home Loan program or review the FHA rules for manufactured homes.
ALT Financial works with trusted FHA lenders for manufactured home loans. Our experienced FHA home loan lenders explain each step in plain, simple language so you feel confident through the process.
ALT Financial has the best team of experts for FHA financing. We connect you with the best FHA lenders for manufactured home loans and guide you in choosing the option that fits your needs.
Key Eligibility Rules for Any FHA Manufactured Home Loan
To get this loan, both you and the home must meet certain rules.
For You (the Buyer):
- Credit score of at least 500.
- Score of 580 or higher for the lowest down payment.
- A steady job or income.
- Debt that is not too high.
- At least 3.5% down if credit is 580+, otherwise 10%.
For the Home:
- Built after June 15, 1976.
- Has a HUD tag that proves it meets safety rules.
- At least 400 square feet in size.
- Hooked up to water, sewer, and power.
- On a permanent foundation if you choose a Title II loan.
For the Loan:
- Must use an FHA-approved lender.
- Mortgage insurance is required.
- Loan size depends on whether you buy the home, the land, or both.
ALT Financial works with trusted FHA home loan lenders who know these rules well.
Potential Drawbacks
Like any loan, there are downsides.
- You must pay extra insurance costs each year.
- Homes must follow HUD rules. Older mobile homes do not qualify.
- Rates may be higher than a normal FHA house loan.
- Not all banks offer these loans.
- For some loans, you must own the land.
Knowing these points helps you plan ahead.
FHA Manufactured Home Guidelines
The FHA has clear rules for homes:
- Must be built after 1976.
- Needs a HUD safety label.
- Must be at least 400 square feet.
- Must connect to utilities.
- Title II loans need a strong foundation.
- Road access is required.
These FHA rules for manufactured homes protect buyers and make sure the home keeps its value.
FAQs
Do older mobile homes qualify?
No. Homes must be built after June 15, 1976.
Do I need insurance?
Yes. FHA loans require upfront and yearly insurance.
How long can I pay?
Up to 20 years for home only. Up to 25 years for home and land.
Can I get approved with poor credit?
Yes. FHA loans are built for buyers with lower credit scores.