Mortgage Options for Modular Homes

1. Traditional Mortgage: If you own the land where the modular home will be placed, you can apply for a traditional mortgage. This option often has lower interest rates compared to other types of loans1.

2. Chattel Mortgage: This is a loan secured against the modular home itself, rather than the land. Chattel mortgages are typically used when the home is placed on leased land1. They may have higher interest rates but can be renewed without penalties.

3. Personal Loan: An unsecured personal loan or line of credit can be used to finance a modular home, especially if the cost is $50,000 or less. However, interest rates are usually higher compared to traditional mortgages1.

4. Leasehold Mortgage: If the modular home is on leased land, a leasehold mortgage might be an option. This type of mortgage is secured against the leasehold interest in the property1.

5. Manufacturer Financing: Some modular home manufacturers offer financing options directly to buyers. This can be a convenient option, but it's important to compare rates and terms with other lenders.

6. Government Programs: Depending on your location and circumstances, there may be government programs available to help finance modular homes. It's worth checking with local housing authorities for any available assistance.

Key Considerations

• Land Ownership: Owning the land where the modular home will be placed can significantly impact your mortgage options and interest rates.

• Permanent Foundation: Modular homes should be secured to a permanent foundation (e.g., concrete or block foundation) to qualify for traditional mortgages.

• Home Condition: The modular home should be in good condition, with no structural damage, water damage, mold, or major electrical/plumbing issues.

• Year-Round Access: The property should have year-round access and be hooked up to essential services like electricity, water, and sanitation.