Manufactured homes offer affordable housing solutions across the United States. However, financing options vary by state.
Comparison Table State Wise: Key Financing Details
| State | Common Loan Programs | Typical Down Payment | Loan Terms |
|---|---|---|---|
| Texas | FHA, VA, USDA, Chattel Loans | 3.5%-5% | 15-30 Years |
| Florida | FHA, Conventional, Chattel | 3%-10% | 20-30 Years |
| California | FHA Title I, Local Programs | 5%-10% | 15-25 Years |
| North Carolina | USDA, FHA, VA Loans | 0%-5% | 20-30 Years |
| Michigan | Fixed/Adjustable-Rate Loans | 3%-10% | 15-30 Years |
| Arizona | FHA, VA, Chattel Loans | 5%-10% | 20-25 Years |
| Ohio | USDA, Local Assistance | 0%-5% | 20-30 Years |
| Georgia | FHA, Chattel Loans | 5%-10% | 15-30 Years |
| Tennessee | FHA, VA, Conventional | 3%-10% | 20-30 Years |
| Alabama | USDA, FHA, VA Loans | 0%-5% | 15-30 Years |
Here are the top 10 states for manufactured home financing in 2024, based on availability of lenders, loan terms, and buyer-friendly programs.
1. Texas
Texas offers many lenders specializing in manufactured home loans. FHA, VA, and USDA programs are widely available. Competitive interest rates and down payment assistance programs make financing accessible.
2. Florida
Florida provides diverse financing options, including chattel loans and conventional mortgages. The state’s strong demand for manufactured homes has resulted in specialized loan programs.
3. California
California supports manufactured homebuyers through flexible financing options. Buyers can access FHA Title I loans, along with state-specific assistance programs for first-time homebuyers.
4. North Carolina
North Carolina stands out for its low interest rates and flexible loan requirements. Many rural areas qualify for USDA loans, reducing upfront costs for buyers.
5. Michigan
Michigan has numerous lenders offering fixed-rate and adjustable-rate loans for manufactured homes. Programs include support for single and multi-section homes.
6. Arizona
Arizona features lender networks focused on manufactured home financing. The state’s growing demand for affordable housing ensures competitive rates and terms.
7. Ohio
Ohio is a top choice for affordable financing options. The state offers grants and low-interest loans for buyers seeking manufactured homes as primary residences.
8. Georgia
Georgia provides strong FHA and VA loan support for manufactured homebuyers. Chattel loans are also accessible for homes not permanently attached to land.
9. Tennessee
Tennessee offers simplified loan processes for manufactured homebuyers. Lenders in the state prioritize flexible terms and quick approvals.
10. Alabama
Alabama features programs with low down payments and long repayment terms. Rural areas often qualify for USDA loans, making financing affordable.
Use Our mortgage payment calculator for manufactured homes so that you get the Idea which state is good for you for buying homes.
Key Factors to Consider
- Down Payment Assistance
- Texas: Programs like My First Texas Home offer assistance for eligible buyers.
- Ohio: Grants for first-time buyers can reduce upfront costs significantly.
- North Carolina: State programs provide zero-interest loans for down payments.
- Tax Benefits
- Florida: No personal property tax on manufactured homes.
- Michigan: Property tax reductions for primary residences.
- Insurance Considerations
- Some states, like Florida, may require windstorm insurance.
- Homeowners insurance costs vary based on whether the home is on leased land or owned land.
Practical Tips for Buyers
- Improve Your Credit Score
- Pay bills on time and reduce credit card balances.
- Review credit reports for errors and dispute inaccuracies.
- Work with Reputable Lenders
- Research lenders specializing in manufactured homes.
- Request multiple quotes and compare fees.
- Understand Loan Terms
- Amortization: Loan payments spread over time with interest.
- Points: Upfront fees that lower interest rates.
- Closing Costs: Fees for processing the loan, often 2%-5% of the loan amount.
Use our Monthly Payment Estimate for Manufactured Home Mortgages guide to explore loan options, down payments, and key details for financing in top states like Texas, Florida, and California.
Common Frequent Asked Questions
Q: What is the difference between a chattel loan and a mortgage?
A: A chattel loan is for homes not attached to land, while a mortgage is for homes tied to real estate.
Q: Can I refinance my manufactured home loan?
A: Yes, refinancing is possible for both chattel loans and mortgages, depending on lender policies.