08/21/2026
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🔎 Choosing the Right Loan for Your Manufactured or Modular HomeWhen shopping for a manufactured or modular home, choosing the right financing is just as important as choosing the right floor plan. Here is a quick guide to the four most common loan types:➡️
1. Chattel Loan (Home-Only Loan)What it is: A loan that covers the physical home structure only, not the land.Best for: Buyers placing their home in a leased-land community, mobile home park, or on family land.The Vibe: Fast approval and lower upfront closing costs, but interest rates are usually higher and loan terms are shorter.➡️
2. Construction LoanWhat it is: A short-term loan used to cover the costs of building a modular home or setting up a manufactured home from start to finish. It covers land purchase, site preparation, permits, and utility hookups.Best for: Buyers managing a full build project on land they are purchasing or already own.The Vibe: Once construction is finished, this loan typically converts into a permanent, traditional 30-year mortgage.
➡️ 3. FHA Loan (Federal Housing Administration)What it is: A government-backed loan designed for affordable financing. It can cover just the home (Title I) or both the home and land together (Title II).Best for: Buyers looking for a low down payment (as low as 3.5%) and flexible credit score requirements.The Vibe: Great for budget-conscious buyers, though it does require a permanent foundation and an ongoing monthly mortgage insurance premium (MIP).
➡️ 4. VA Loan (Department of Veterans Affairs)What it is: A specialized government-backed loan for military members, veterans, and eligible surviving spouses.Best for: Qualifying military families buying a manufactured or modular home as their primary residence.
To get a manufactured home with a 3% down payment, you must use a conventional real estate mortgage. The two main programs that allow this are Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome.
Get preapproved with
Brian Riley is a highly experienced mortgage loan officer at Advantage Plus Federal Credit Union
208-241-1008
Veneta Wellard is an Assistant Vice President, Real Estate Underwriter, and Home Mortgage Loan Officer at The Bank of Commerce, specializing in residential mortgages, construction lending, and home financing throughout Southeast Idaho.
208-237-9966
Amy Cordell is a Construction Certified Mortgage Loan Officer at Idaho Central Credit Union (ICCU), based in Pocatello, Idaho.She has lived in Southeast Idaho for nearly four decades and specializes in standard mortgages, construction-to-permanent lending packages, starter homes, and real estate investment options.
208-637-8323