Considering Buying a Manufactured Home? Explore Financing Options

Homes come in all shapes and sizes and finding the right one for you is a big decision. If you’re thinking about customizing a new home, you can go the traditional route, building a custom construction home, or a new manufactured home, which provides many of the same benefits.

A manufactured home is built at a manufacturing facility and transported to the site of your choice. When this home type first came to market, more than 70 years ago, it was referred to as a mobile home because they were often on wheels. Today, that’s rare, yet they are still delivered ready to move in. Manufactured homes can offer a practical solution if you have a specific location and want to move in faster than waiting for a traditional build. Manufactured homes are also growing in popularity as vacation or weekend homes—when the perfect location is the most important factor. 

If a new manufactured home is on your list of possibilities, consider these options when making your decision:

Cost

Depending on where you live, a manufactured home may be more affordable than a traditionally constructed home. The factory-built construction process benefits from building in quantity and is less dependent on price fluctuations driven by availability of contractors. But don’t forget to add in the land or lot cost and any needed property preparations like pouring a foundation. Also, if you choose a lot in an existing community, there may be HOA fees.

Customizations

Manufactured homes have come a long way in design, energy efficiency and durability.  Like spec homes, manufacturers offer a number of models, plans and price-points. Buyers can select many features and finishes—like flooring, cabinets, countertops, roofing and energy efficient options.   

Move in faster

Because these homes are built in a factory, there are no weather delays and the company has more control over their supply chain. It adds up to a faster build so you can start making memories in your new home sooner.

Long-term value

Depending on the market and home model, the value of a manufactured home may depreciate over time compared to traditional homes that tend to appreciate. Be sure to do your homework because this can potentially affect the home’s resale value.

Lot and land options

Depending on where you want to live, consider if you can find a property you want. If you already have the perfect one—like a dream lake lot—a manufactured home could be a big advantage over finding a contractor and overseeing an out-of-town build.   

Manufactured Home Financing Options

It’s important to know, traditional financing options are available for today’s new manufactured homes. At Banner, we created our all-in-one manufactured home loan to make it easy. You can finance the new home along with the land/lot and site preparation costs (foundation, landscaping, utilities, etc.). 

Other loan types may be available depending on the lender, including Federal Housing Administration (FHA), designed for first time homebuyers, or Veterans Benefits Administration (VA) for active service members or veterans, and conventional financing. Be sure to check with your lender on their loan to value requirements as it will fluctuate based on many factors such as the home’s primary purpose and your credit.

Regardless of the financing you choose, the first step is identifying the property or lot—even if the land improvements haven’t been made yet. To qualify for financing, most financial institutions require you work with a certified manufacturer and a licensed manufactured home installer. The manufacturer ensures the home is up-to-code and they pair you with the installer, which is required when placing a home on a foundation.

In a tight housing market, not everyone wants—or can afford—a traditional home. It’s important to know your priorities and pursue what’s right for your situation. No matter what you decide to call home, the choice is yours. Don’t shy away from choosing a lender who respects that and is willing to work hard to help you finance your dream.