If you're comparing manufactured home loan rates to conventional mortgage rates, you may notice differences. Understanding why these differences exist — and how to position yourself for the best rate — puts you in control of your financing.
Why Rates Differ
Manufactured homes have historically had higher loan rates than site-built homes due to a few factors: the perception of higher risk among some lenders, the personal property classification of many manufactured home loans, and the smaller secondary market for these loans.
However, the gap has narrowed significantly, especially for manufactured homes on owned land that are titled as real property.
Factors That Affect Your Rate
Credit score: Your credit history is the biggest factor within your control. Improving your credit before applying can meaningfully reduce your rate.
Loan type: Real property loans (on-land, home properly titled) typically carry lower rates than chattel loans (personal property, in-park).
Loan term: Shorter terms generally carry lower rates, though your monthly payment will be higher.
Down payment: A larger down payment reduces lender risk and can translate to better rates.
Market conditions: Rates fluctuate with broader economic conditions, the Federal Reserve's benchmark rate, and investor demand.
Getting the Best Rate
Shop with specialized lenders. MH Lending Services focuses exclusively on manufactured home loans, which means we have programs specifically calibrated for this market. Our in-house underwriting allows us to be more competitive than lenders who treat manufactured home loans as an afterthought.
Check your credit, save for a meaningful down payment, and reach out for a rate consultation. We'll show you exactly what you qualify for today.
