FHA Mobile Home Loans:
What You Need to Know Before You Apply
If you're shopping for a manufactured home — or already own one — you may be wondering whether an FHA mobile home loan is a real option. The short answer is yes. The Federal Housing Administration does back loans for manufactured housing. But the rules are different from a standard FHA home purchase, and getting the details wrong can cost you time and money.
The terminology alone causes confusion. Lenders, appraisers, and government agencies draw hard lines between "mobile homes," "manufactured homes," and "modular homes." Those labels affect what kind of financing you can get — or whether you qualify at all.
This guide walks through how FHA manufactured home financing works, what your home needs to qualify, and where borrowers run into trouble.
Mobile Home vs. Manufactured Home: Why the Label Matters for FHA
This distinction trips up more borrowers than almost anything else. Here's the quick version:
Mobile home refers to a factory-built home constructed before June 15, 1976. These homes were built before the U.S. Department of Housing and Urban Development (HUD) established national construction and safety standards. They don't meet those standards, and FHA will not insure a loan on a pre-1976 mobile home.
Manufactured home refers to a factory-built home constructed on or after June 15, 1976, following the HUD Manufactured Home Construction and Safety Standards. These homes carry a HUD certification label (a red metal tag on the exterior) and a data plate inside. Both are required for FHA financing.
Modular home is something different entirely. Modular homes are factory-built but assembled on-site and must meet local building codes — the same ones site-built homes follow. FHA treats modular homes like conventional stick-built houses, so they follow standard FHA loan guidelines rather than the manufactured home rules covered here.
Two FHA Paths for Manufactured Homes: Title I and Title II
FHA offers two separate loan programs for manufactured housing, and they work quite differently. Which one applies depends mainly on whether the home sits on a permanent foundation and whether you own the land.
Title I Manufactured Home Loans
Title I loans are designed for manufactured homes classified as personal property (sometimes called "chattel"). The home doesn't need to be on a permanent foundation, and you don't necessarily need to own the land underneath it. This makes Title I loans more accessible, but they come with lower loan limits.
According to HUD guidelines, current Title I loan limits are:
- $69,678 for a manufactured home only (no land)
- $92,904 for a manufactured home and lot together
- $23,226 for a lot only
Title I loan terms max out at 20 years for a home only, or 25 years for a home and lot combined. These shorter terms and lower amounts mean monthly payments can still be significant relative to the loan size.
Title II Manufactured Home Loans
Title II loans treat the manufactured home as real property — like a site-built house. For this to work, the home must be permanently affixed to a foundation that meets HUD's Permanent Foundations Guide for Manufactured Housing, and you must own (or be purchasing) the land.
The advantage here is that Title II loans follow standard FHA loan limits for the county where the home is located. In most of the country, the 2024 FHA loan limit floor is $498,257, though it can be higher in counties where home values are above average. Per the FHA single-family insurance program, Title II loans also allow up to 30-year terms, which keeps monthly payments lower.
| Feature | Title I | Title II |
|---|---|---|
| Property classification | Personal property (chattel) | Real property |
| Permanent foundation required? | No | Yes |
| Must you own the land? | No (can lease) | Yes |
| Maximum loan amount | $69,678 (home only) / $92,904 (home + lot) | Standard FHA county limits (e.g., $498,257 floor in 2024) |
| Maximum loan term | 20 years (home) / 25 years (home + lot) | 30 years |
| Minimum down payment | 5% | 3.5% |
| FHA mortgage insurance | Yes | Yes (upfront + annual MIP) |
FHA Mobile Home Loan Requirements: What the Property Needs
Beyond borrower qualifications like credit score and income, the property itself must meet specific conditions. This is where many loan applications stall — the borrower qualifies, but the home doesn't.
| Requirement | Details |
|---|---|
| Build date | ✓ Built on or after June 15, 1976 |
| HUD certification label | ✓ Red metal tag must be present on exterior of each section |
| Data plate | ✓ Located inside the home (usually near the electrical panel or in a closet) |
| Minimum floor area | ✓ At least 400 square feet of living space |
| Occupancy | ✓ Must be your primary residence |
| Permanent foundation (Title II) | ✓ Must meet HUD's Permanent Foundations Guide; requires engineer certification |
| Towing equipment | ✓ Wheels, axles, and tongue must be removed |
| Previously moved? | ✗ Title II: home cannot have been moved from its original installation site |
Borrower Requirements
FHA borrower guidelines for manufactured homes are largely the same as for other FHA loans, with a few specifics worth noting:
- Credit score: Per FHA guidelines, a minimum score of 580 qualifies you for the 3.5% down payment on Title II loans. Scores between 500–579 require 10% down. For Title I loans, lenders set their own credit minimums but typically look for 580 or higher.
- Debt-to-income ratio: FHA generally caps your total monthly debt payments (including the new mortgage) at 43% of gross monthly income, though higher ratios are sometimes allowed with compensating factors. The CFPB offers a helpful explanation of why the 43% debt-to-income ratio matters.
- Employment and income: Standard FHA documentation applies — typically two years of tax returns, recent pay stubs, and bank statements. If your income situation is more complex, Elevation Mortgage works with borrowers who have self-employed or non-traditional income.
Down Payment and Closing Costs
One of the reasons borrowers look at FHA is the lower down payment threshold. For Title II manufactured home loans, FHA requires just 3.5% down with a credit score of 580 or better. On a $150,000 purchase, that's $5,250.
Title I loans require a slightly higher 5% minimum down payment. On a $70,000 manufactured home, that comes to $3,500.
Keep in mind that FHA loans also carry mortgage insurance premiums (MIP): an upfront premium of 1.75% of the loan amount (which can be rolled into the loan) and an annual premium that's split into monthly payments. For a $145,000 loan, the upfront MIP adds about $2,538.
Closing costs for manufactured home loans are similar to those on site-built homes — typically 2% to 5% of the loan amount — but you may also face costs specific to manufactured housing, like the foundation inspection and engineer's certification report. These can run $1,000 to $3,000 depending on your area.
You can use our mortgage calculator to estimate monthly payments based on different loan amounts and terms.
Where Borrowers Run into Problems
Even when you meet the credit and income requirements, manufactured home loans can hit unexpected roadblocks. Here are the most common ones.
Not all lenders offer FHA manufactured home loans
Many FHA-approved lenders don't participate in the manufactured home program. Some only do Title II (real property) loans and won't touch Title I. If you're getting turned down, it might not be a qualification issue — it might be a lender issue. Working with a broker who handles multiple mortgage loan programs can open up more options.
Missing HUD labels
If the HUD certification label has been removed, painted over, or damaged, you'll need to contact the Institute for Building Technology and Safety (IBTS) to get a label verification letter. This process takes time, and without it, the loan won't move forward.
Foundation issues
For Title II loans, the foundation must be certified by a licensed professional engineer or registered architect as meeting HUD's permanent foundation standards. If a home was placed on a foundation years ago without this certification, getting it after the fact can be expensive — or the foundation may not meet current standards at all.
Homes that have been moved
FHA Title II guidelines prohibit financing on manufactured homes that have been relocated from their original installation site. This is a non-negotiable rule that catches some buyers off guard, especially with used homes.
Appraisal shortfalls
Manufactured home appraisals can be tricky because comparable sales are harder to find. If the appraisal comes in below the purchase price, you'll either need to negotiate the price down, bring additional cash to closing, or walk away. According to the Urban Institute's analysis of the 2025 Manufactured Housing Survey, manufactured homes represent about 10% of new single-family home construction, which means appraisers in some areas have limited comparable data to work with.
Is an FHA Manufactured Home Loan Right for You?
FHA manufactured home financing fills a real gap. Plenty of buyers are drawn to manufactured homes because they're far more affordable than site-built houses — in 2024, the average new manufactured home sold for $123,300, compared to a median single-family home value of $367,282, according to a Construction Coverage analysis of U.S. Census Bureau data.
But "affordable" doesn't always mean "simple to finance." The qualification process has more moving parts than a standard home purchase. The property has to meet strict physical requirements, you need to find a lender who actually participates in the program, and documentation like HUD labels and foundation certifications can delay things if you're not prepared.
If you're comparing this to other financing paths, conventional loans also finance manufactured homes under certain conditions (Fannie Mae's MH Advantage and Freddie Mac's CHOICEHome programs, for example), though they typically have stricter property standards and higher credit requirements.
The right starting point is understanding what your specific home qualifies for and what you can afford. From there, the pieces tend to fall into place more clearly.
Explore Your Down Payment Options
Manufactured home buyers often have more down payment flexibility than they realize. See what programs may apply to your situation — including FHA, state-level assistance, and other options available in Colorado and Florida.
Explore Down Payment ProgramsFrequently Asked Questions About FHA Mobile Home Loans
It depends on the loan type. FHA Title I loans allow the home to be on leased land, which includes many mobile home parks. FHA Title II loans require you to own the land, so a home in a park with a lot rental arrangement wouldn't qualify under Title II. Make sure the park lease terms meet FHA requirements — typically a minimum lease term is required.
For FHA Title II loans, a 580 credit score qualifies you for the 3.5% minimum down payment. Scores between 500 and 579 are allowed with a 10% down payment. For Title I loans, FHA doesn't set a strict minimum, but most lenders require at least 580. Individual lenders may set their own higher thresholds, so this can vary.
For Title II loans, yes — the home must sit on a permanent foundation that meets HUD's Permanent Foundations Guide, and a licensed engineer or architect must certify it. For Title I loans, a permanent foundation is not required, which is one of the main differences between the two programs.
Yes, FHA refinance options exist for manufactured homes, but the same property requirements apply. The home must have a HUD certification label, meet minimum size requirements, and (for Title II) be on a permanent foundation you own. If you currently have a chattel loan, refinancing into a Title II FHA mortgage could lower your rate — but only if the property meets all Title II standards.
Title II manufactured home loans typically carry rates similar to standard FHA loans on site-built homes. Title I loans may have slightly higher rates because they're classified as personal property loans rather than traditional mortgages. Rates vary by lender, so comparing offers from multiple sources is worth the effort.