Can You Get a Mobile Home With an FHA Loan?

A mobile home located on a grassy area eligible for an FHA manufactured home loan.Many people wonder if an FHA loan is an option when financing a mobile home. FHA loans are known for their flexibility and accessibility, but do they also apply to mobile homes? This article will explore the eligibility requirements and financing options for mobile homes through FHA loans. So, can you get a mobile home with an FHA loan? Let's find out.

Key Takeaways:

  • FHA loans offer a potential financing option for those purchasing a mobile home.
  • Eligibility requirements for FHA loans include meeting specific credit scores, income, and down payment criteria.
  • Mobile homes must also meet specific standards set by the Department of Housing and Urban Development (HUD) to be eligible for an FHA loan.
  • While FHA loans have benefits like lower down payment requirements, they also have drawbacks, such as mortgage insurance premiums.
  • Alternative financing options, like conventional loans, may be worth considering for those who don't meet FHA loan requirements.

Understanding FHA loans

In this section, we will provide an overview of FHA loans, exploring their nature and operation. We will also discuss the eligibility requirements for FHA loans, including credit score, income, and down payment requirements.

What are FHA loans?

FHA loans, or Federal Housing Administration loans, are mortgages insured by the Federal Housing Administration. These loans aim to assist borrowers who might not meet the requirements for conventional loans in securing financing for home purchases.

Eligibility Requirements for FHA Loans

To be eligible for an FHA loan, borrowers must meet specific requirements. These requirements include having a minimum credit score, typically around 580, although some lenders may have higher standards. Borrowers should also have a steady source of income and be able to provide proof of employment. Additionally, borrowers are required to make a minimum down payment, which generally ranges from 3.5% to 10% of the home's purchase price. There are limits on how much debt borrowers can have on their income.

It's important to note that FHA loan limits vary by location. These limits determine the maximum loan amount a borrower can obtain through an FHA loan. Borrowers should consult the FHA website or speak with an FHA-approved lender to determine the loan limits in their area.

Mobile Homes and FHA Loans

In this section, we will explore the relationship between mobile homes and FHA loans. We will discuss the definition of a mobile home and the specific requirements it must meet to qualify for an FHA loan. Additionally, we will discuss the various types of mobile homes that are eligible for FHA loans, including those that conform to HUD standards.

Definition of a Mobile Home

A mobile home, or manufactured home, is a prefabricated dwelling built off-site and transported to its final location. The U.S. Department of Housing and Urban Development (HUD) constructs these homes in a factory, adhering to specific building codes.

FHA Loan Requirements for Mobile Homes

There are specific requirements for FHA loans for mobile homes. These requirements include:

  • We must classify the mobile home as real estate, not personal property.
  • The home must be permanently affixed to a foundation and comply with local building codes.
  • The borrower must own the land on which the mobile home is located or have a long-term lease agreement.
  • The mobile home must be the borrower's primary residence.
  • The borrower must meet the FHA's credit score and debt-to-income ratio requirements.

Types of Mobile Homes Eligible for FHA Loans

Not all types of mobile homes are eligible for FHA loans. To be eligible, the mobile home must conform to HUD standards. These standards include structural design, safety, energy efficiency, and durability requirements. "HUD-compliant" mobile homes that meet these standards qualify for FHA financing.

Pros and Cons of Using an FHA Loan for a Mobile Home

This section will explore the advantages and disadvantages of using an FHA loan to finance a mobile home purchase.


There are several benefits to consider when using an FHA loan for a mobile home:

  1. Lower down payment requirements: One of the main advantages of an FHA loan is the lower down payment requirement compared to conventional loans. With an FHA loan, you may be eligible for a down payment as low as 3.5%, making homeownership more accessible for many buyers.
  2. Flexible credit score guidelines: FHA loans are known for their more lenient credit score requirements. While conventional loans typically require a higher credit score, FHA loans may be available to borrowers with less-than-perfect credit.
  3. Fixed interest rates: FHA loans offer fixed interest rates, providing borrowers with stability and predictability in their monthly mortgage payments.
  4. Assumable loans: FHA loans are assumable, which means that if you decide to sell your mobile home in the future, the buyer may be able to assume your loan, potentially making your home more attractive to potential buyers.


However, there are some potential drawbacks to consider before choosing an FHA loan for your mobile home financing:

  1. Mortgage insurance premiums: FHA loans require borrowers to pay mortgage insurance premiums, which can increase their monthly payments. These premiums protect the lender in case of default.
  2. Borrowing limits: FHA loans have borrowing limits that vary depending on the property's location. These limits may restrict your options if you want to purchase a higher-priced mobile home.
  3. Property requirements: To qualify for an FHA loan, you must meet specific property requirements. These requirements include standards related to the condition of the mobile home and its permanent foundation.

Considering both the advantages and disadvantages of using an FHA loan for a mobile home purchase is crucial to making an informed decision that aligns with your financial goals and circumstances.

How to Get an FHA Loan for a Mobile Home

Obtaining an FHA loan for a mobile home is a straightforward process that begins with finding an FHA-approved lender. From there, you'll navigate the application process, including submitting the required documentation and completing the necessary forms. Once your application is approved, you'll move on to the final stages of the process, which involve the approval and closing processes.

Finding a Lender

The first step in getting an FHA loan for a mobile home is to find an FHA-approved lender. The Federal Housing Administration has approved these lenders to offer loans under the FHA program. You can search for approved lenders on the FHA's website or contact your local HUD office for assistance. Choosing a reputable lender with experience with mobile home financing is essential to ensure a smooth loan process.

Application Process

You can begin the application process once you've found an FHA-approved lender. This involves gathering necessary documentation, such as proof of income, employment history, and credit history. Additionally, you must fill out the FHA loan application form and supply any extra details the lender requests. Be prepared to provide information about the mobile home you wish to purchase, including its location and condition.

During the application process, the lender will review your documentation and assess your eligibility for an FHA loan. This includes evaluating your creditworthiness, income stability, and ability to make the required down payment. The lender may also appraise the mobile home to determine its value.

Approval and Closing Process

If the lender approves your application, you will proceed to the approval and closing process. During this stage, the lender will issue a loan commitment letter outlining the terms and conditions of the loan. You'll review and sign the loan documents, including the promissory note and mortgage agreement.

After the loan documents are signed, the lender will fund the loan, and the closing process will be initiated. This involves transferring ownership of the mobile home and recording the new mortgage with the appropriate local government office. You may also need to pay closing costs, including fees for title searches, appraisals, and other necessary services.

Once the closing process is complete, you'll officially own the mobile home and be ready to move in. It's important to note that throughout the FHA loan application and approval process, it's crucial to communicate and stay in contact with your lender. This will help ensure a smooth and efficient loan process.

Alternatives to FHA Loans for Mobile Homes

In addition to FHA loans, alternative financing options are available for individuals looking to purchase a mobile home. These options include conventional loans and other programs specifically designed for manufactured homes.

Conventional Loans

One alternative to an FHA loan for mobile homes is a conventional loan. Unlike FHA loans, the federal government does not insure or guarantee conventional loans. Private lenders offer them instead, typically with stricter eligibility requirements.

Conventional loans for mobile homes usually require a higher down payment than FHA loans. Depending on the lender and the borrower's creditworthiness, the down payment amount typically ranges between 5% and 20% of the purchase price.

Conventional loans may also have more stringent credit scores and income requirements, making them a better option for borrowers with high credit scores and stable incomes.

One advantage of conventional loans is that they do not require mortgage insurance if the borrower has a down payment of at least 20%. This can result in long-term cost savings for the homeowner.

Other financing options

Aside from FHA and conventional loans, other loan programs are specifically tailored to finance manufactured homes.

One option is a loan from specialized lenders focusing solely on mobile home financing. These lenders may offer competitive interest rates and flexible terms for borrowers looking to purchase a mobile home.

Another option is to explore loan programs offered by the U.S. Department of Agriculture (USDA) and the U.S. Department of Veterans Affairs (VA). These programs may provide financing options for qualified borrowers with specific eligibility criteria.

Researching and comparing different loan programs is essential to find the best fit for your circumstances. Consulting with lenders specializing in mobile home financing can also provide valuable insights and guidance.

By exploring alternative financing options to FHA loans, such as conventional loans and other loan programs, individuals looking to purchase a mobile home can find the right loan that suits their needs and financial situation.


After exploring financing a mobile home with an FHA loan, we can conclude that this type offers several benefits to borrowers. FHA loans provide a viable option for individuals who may have difficulty qualifying for conventional loans due to lower credit scores or limited down payment funds. The flexible eligibility and lower down payment requirements make FHA loans accessible to more potential buyers.

However, it is essential to consider the pros and cons of using an FHA loan for a mobile home purchase. While FHA loans offer advantages such as lower down payment requirements and flexible credit score guidelines, they also have potential drawbacks such as mortgage insurance premiums and borrowing limits. Prospective buyers must carefully evaluate their financial situation and weigh the benefits and drawbacks before choosing FHA financing.

Additionally, although FHA loans are a popular choice for mobile home financing, it is wise to explore alternative financing options. Conventional loans and other loan programs may offer different benefits and eligibility requirements that better align with individual needs and preferences. By thoroughly researching and comparing different loan options, borrowers can make an informed decision and select the financing solution that best suits their circumstances.

In conclusion, FHA loans provide a valuable financing option for individuals looking to purchase a mobile home. They offer benefits such as lower down payments and flexible eligibility requirements, making homeownership more accessible. However, it's essential to carefully consider the pros and cons of FHA loans, explore alternative financing options, and select the loan program that aligns with your financial goals and situation.

Financing Manufactured (Mobile) Homes

Recommended Reading

Frequently Asked Questions About FHA Loans
FHA Loan Requirements: Everything You Need to Know
Common Questions About FHA Loans
Can You Have Two FHA Loans at the Same Time?