Can you refinance a mobile home or manufactured home?

By Courtney Muller

Back to all blog posts
Learn how to refinance a mobile or manufactured home. Explore options, requirements, and steps to lower payments, access equity, or improve terms today!

Refinancing a mobile or manufactured home can lower monthly payments, reduce interest rates, or unlock home equity. Unlike traditional home loan adjustments, this process involves unique property classifications and lender requirements. This guide explains everything you need to know, from identifying your home type to choosing the best refinancing options.

Mobile vs. Manufactured Homes: Key Differences

Before refinancing, determine if your home qualifies as mobile or manufactured:

  • Mobile Home: Built in a factory before June 15, 1976, without meeting HUD code requirements.
  • Manufactured Home: Built after June 15, 1976, and compliant with HUD’s construction and safety standards.

Lenders typically require manufactured homes to meet HUD guidelines for refinancing eligibility.

Can You Refinance a Mobile or Manufactured Home?

Yes, but eligibility depends on whether your home is classified as real property or personal property:

  • Real Property: The home is permanently affixed to land you own, qualifying for more refinancing options.
  • Personal Property: The home sits on leased land without a permanent foundation, limiting refinancing options to chattel or personal loans.

Refinance Your Mobile Home for a Better Mortgage Rate

Best Refinancing Options for Mobile and Manufactured Homes

1. Rate-and-Term Refinance

Adjusts loan terms or interest rates without tapping into home equity.

2. Cash-Out Refinance

Allows homeowners to borrow against equity for renovations, debt consolidation, or financial needs.

3. Streamline Refinance

Simplifies refinancing for FHA, VA, or USDA loans with minimal paperwork.

Refinancing Requirements for Manufactured Homes

Lenders impose specific criteria for approval:

  • Permanent Foundation: Home must be securely affixed to land you own.
  • HUD Certification: Requires a HUD tag or data plate verifying compliance with safety standards.
  • Credit Score: Minimum 580-640, depending on loan type.
  • Debt-to-Income Ratio (DTI): Preferably below 43%.
  • Home Equity: Sufficient equity is typically required, especially for cash-out refinancing.

Best Loans for a Mobile/Manufactured Home

Conventional Loans

  • Require a 620+ credit score and a maximum 50% DTI.
  • Offer competitive rates but have stricter credit requirements.

FHA Loans

  • Accept credit scores as low as 580.
  • FHA Title I loans can finance home improvements on leased land.

VA Loans

  • Available for eligible military members, veterans, and spouses.
  • VA IRRRL option allows streamlined refinancing.

USDA Loans

  • Ideal for low-to-moderate-income borrowers in rural areas.
  • USDA Streamline Assist program requires no income verification.

Chattel Loans

  • Designed for homes on leased land or not permanently affixed.
  • Typically have higher interest rates and shorter terms.

Lower Your Monthly Mortgage Payment. Refinance your manufactured home today

How to finance a Mobile Home in 5 Steps

  • Identify Home Type: Determine whether your home qualifies as real or personal property.
  • Consult Lenders: Compare mortgage lenders specializing in mobile home refinancing.
  • Select a Loan: Choose a program that aligns with your financial goals.
  • Gather Documents: Submit proof of income, tax returns, and home classification details.
  • Pay Closing Costs: Expect fees between 3%-6% of the loan amount. Some lenders allow rolling costs into the loan.

Pros and Cons of Refinancing a Mobile Home

Pros:

  • Lower monthly payments with reduced rates or extended terms.
  • Access to cash for home improvements or debt repayment.
  • Potential for long-term interest savings.

Cons:

  • Upfront closing costs.
  • No guaranteed rate improvement, depending on market conditions.
  • Monthly payments may increase if cashing out equity.

Alternative Options If Your Home Doesn’t Qualify

  • Chattel Loan: Ideal for personal property, though rates are higher and terms are shorter.
  • Personal Loan: Faster approval with fewer restrictions, but limited borrowing amounts and higher interest rates

Secure The Lowest Mortgage Rate With

Is Refinancing Right for You?

Refinancing a mobile or manufactured home can reduce costs, lower payments, and help achieve financial goals. However, assessing your home’s classification, eligibility, and financial situation is crucial.

Explore lender options specializing in mobile home refinancing to secure the best terms. By understanding the process and meeting lender requirements, you can make informed decisions and maximize savings on your refinance.

Get My Custom Rate Quote

No SSN required. Zero impact to credit. Your Information is never sold.

view all posts