Myth #18: You Can’t Finance a Manufactured or Modular Home
Think financing is only for traditional stick-built homes? Let’s set the record straight on manufactured and modular homes.
The Myth
You can’t finance a manufactured or modular home.
The Truth
You absolutely can. Both manufactured and modular homes can qualify for financing—sometimes with the exact same loan programs as traditional stick-built homes. The key lies in the details: permanent foundation, HUD tags or state code compliance, and working with a lender who knows the differences.
Why People Believe This
Manufactured and modular homes often get lumped together with “mobile homes,” which historically were harder (or impossible) to finance. Many banks avoid these loans, so buyers assume financing isn’t available at all. Outdated advice from relatives or inexperienced lenders only reinforces the myth.
Detailed Breakdown
- Manufactured Homes: Built in a factory to federal HUD standards, transported to the site, and placed on a permanent chassis. If installed on a permanent foundation with the HUD certification plate intact, these homes are financeable under FHA, VA, USDA, and conventional loan programs.
- Modular Homes: Also built in sections in a factory, but to state and local building codes. Once assembled on-site, they’re treated the same as a stick-built home. These homes can use conventional financing without extra hoops.
- Mobile or Tiny Homes on Wheels: Often confused with the above, but these typically don’t qualify unless they’re converted to real property.
The biggest factor is whether the home is considered “real property” and attached to land you own or will soon own once you buy it. If it is, there’s likely a loan option available.
Real-World Example
Just last month, our team helped a family buy a manufactured home here in Wisconsin (but we're lending nationwide). They’d been turned away by two different lenders who said it “wasn’t possible.” In reality, it was eligible for standard conventional financing; super easy loan. By knowing the guidelines and confirming the home’s status as real property, we got them closed quickly—and into the home they’d thought was out of reach.
The Bottom Line
Don’t let outdated myths keep you from the home you want. Manufactured and modular homes can be financed—and often with the same programs as any other home. The difference isn’t in the home, it’s in the lender you choose.
Ready to explore your options?
Download our First Time Buyers Guide or our Construction and Renovation Guide - yes, we can help you build these, too - or simply contact me for more details. Let’s talk about how financing could work for your home.
