For many Americans, like first-time buyers and veterans, purchasing a manufactured home is a budget-friendly way to become a homeowner. With the housing market becoming less and less predictable, it is important you know what to expect with manufactured home loan interest rates.
In this guide, we’ll explain how Manufactured Home Loan Rates are calculated, what factors impact them, and how to get the best rate possible when financing your home, cottage, or modular home.
What Are Manufactured Home Loan Rates?
Manufactured home loan rates the interest rate is the rate of interest placed on a loan for the purchase or refinancing of a manufactured home. These costs can vary substantially, depending on:
- Credit score
- Loan type (FHA, VA, Conventional, Chattel)
- Loan term
- Down payment amount
- Home’s foundation type (permanent vs. mobile)
Manufactured Homes are treated differently than stick-built homes, and (with the exception of newer MHs that are installed on a permanent foundation) may be perceived as a less stable asset by lenders. This risk usually manifests itself through increased interest rates for most buying consumers as more buyers can and still do obtain affordable financing through more exotic loan programs.
Average Loan Rates for Manufactured Homes in 2025
As of mid-2025, the average manufactured home loan rates are in the range of 6.25% – 8.50% depending on the loan type:
- Chattel Loans (personal property loans): 7.5%–10% APR
- FHA Loans for Manufactured Homes: 6.5%–7.5% APR
- VA Loans: As low as 6.0% APR (for qualified veterans)
- Conventional Loans: 6.25%–8.0% APR
But remember, these rates are also based on larger economic factors such as inflation, Federal Reserve benchmarks, and demand for housing.
How to Get a Lower Manufactured Home Loan Rate
1. Improve Your Credit Score
For manufactured home financing, the minimum credit score should be 620 for most lenders. The higher the score, the lower the interest rate.
2. Make a Larger Down Payment
A 20 percent or larger down payment can also cut down on the lender’s risk and open the door to better interest rates.
3. Choose a Permanent Foundation
Homes sitting on a perman. ent foundation are eligible for the same kind of mortgage loans you could use to buy a site-built home (and interest rates on those loans are typically lower than on chattel loans).
4. Compare Multiple Lenders
Comparing can save thousands over the life of the loan. There are some lenders that are specialists in Triple Wide Manufactured Homes that have available customized loan programs.
5. Consider VA or FHA Loans
Government-insured loans are crafted to provide competitive interest rates, and with more flexible terms, particularly for veterans and first-time buyers.
VA Loans: A Top Option for Manufactured Home Buyers
The VA loan may be the least expensive form of financing for eligible veterans. In addition to offering a 0% down payment, applicants receive a lower interest rate than they would on a standard mortgage, and there’s no private mortgage insurance (PMI) charged on these loans.
If you’re thinking about new construction, learn about the advantages of a VA Construction Loan, which can also finance land purchase and construction of a manufactured or modular home.
Choosing the Right Location: Land Considerations
Rates for a mobile home loan can also be based on land ownership. And if you’re purchasing a home and renting land in a community, your rates might be higher because your loan will be classified as personal property.
But if you own the land, you could leap the first hurdle by qualifying for a traditional mortgage. Looking for property? This list of where to buy land in Texas can help you checks out budget-friendly rural and suburban community’s ideal for manufactured homes.
Modular vs. Manufactured: What’s the Difference?
Though affordable at the same price point, modular homes are usually considered real estate and therefore eligible for lower interest rates. If you’re on the fence, consider creating a modular home instead.
These homes are constructed to the same code as a site-built house and may provide more financing flexibility.
Work with the Right Builder
Your builder can also affect your financing options. Choose experienced, reputable professionals. Here is a list of the best Texas home builders who build manufactured and modular homes.
To make sure that investment will pay off, and that you are in accordance with lending requirements, opt for a Best Quality Home Builder.
Planning to Build on Your Own Land?
If you own or are planning to buy a vacant lot along with your construction project, you might be considering how to finance the actual construction. With the correct support, it’s possible to be able to leverage the benefits of Loan to Build a House on My Land, yet still benefit from manufactured housing. Some lenders offer land loans that make it easier to avoid the hassle and interest rates of leaving the land and home buying process in two places.
Don’t Miss Out on Special Rate Programs
Rate shopping is key but timing matters as well. Some lenders have promotions that could help cushion the blow, like Rate Drop Advantage, which would allow you to refinance at a lower rate in the future if the interest rates decline. This can be reassuring in today’s market volatility.
Final Thoughts
Mobile home loan rates can differ, but if you know where to look, you can find great financing and make it a lot easier for your checkbook. So when you are buying a new home, applying for a refinance or even requesting new construction, there are things that you should take the time to:
- Check your credit
- Research lenders
- Choose the right loan type
- Consider land ownership
- Work with experienced builders
A mobile home can be a great investment if you pair it with a good financing solution.
Looking to begin your journey? Check out your options today, and then discover how government-backed loans, trusted builders and customized loan packages can help you into your new home!