Finding the right home is only half the journey—understanding how to finance it is the other. With California’s rising housing prices, more people are exploring mobile home living as a practical and affordable option. While the cost of a manufactured home is typically far lower than a traditional home, you still need the right financing to make it happen.
In this guide, we’ll walk through the most common loan options available for mobile homes in California. Whether you’re a first-time buyer, a veteran, or simply looking for a smaller footprint, knowing your financing options will make the process much smoother.
FHA Loans
One of the most accessible ways to finance a mobile home is through a loan insured by the Federal Housing Administration (FHA). FHA loans are designed to help low- to moderate-income borrowers become homeowners, and their flexible requirements make them popular among first-time buyers.
These loans often require a credit score of at least 580 and a down payment of 3.5%. The home must be built after June 15, 1976, and meet HUD construction standards to qualify. While FHA doesn’t issue loans directly, it insures them through approved private lenders. You’ll still need to apply through a lender who offers FHA programs, and mortgage insurance is typically required.
This option is especially useful if your credit history isn’t perfect or you don’t have a large amount saved for a down payment.
Conventional Mortgages
Some buyers may qualify for a conventional mortgage, which is not backed by the government. These loans are offered by private institutions and may follow guidelines set by Fannie Mae or Freddie Mac.
To qualify, you’ll typically need a good credit score—usually 620 or higher—and a down payment of 10% to 20%, depending on the lender. Not all conventional lenders finance mobile homes, and those that do may only offer loans for homes placed on owned land and permanently affixed to a foundation.
If you’re purchasing a manufactured home as real property and not just the structure, this type of mortgage may be available to you. It’s a good fit for borrowers who meet higher credit and income requirements and prefer fixed interest rates.
VA Loans
If you’re a veteran, active-duty service member, or eligible surviving spouse, a Veterans Affairs (VA) Loans could help you purchase a mobile home with favorable terms. These loans are backed by the U.S. Department of Veterans Affairs and generally require no down payment and no private mortgage insurance.
VA loans are known for their competitive interest rates and reduced closing costs. However, not all lenders offer VA loans for manufactured homes, so you’ll want to confirm eligibility with the provider beforehand. Some areas may also have limited access to lenders that work with mobile home VA loans.
For qualified buyers, this loan type is a strong option that can significantly reduce upfront and long-term costs.
Chattel Loans
When a mobile home is placed in a land-lease community or not affixed to permanent land, it may not qualify for traditional mortgages. In this case, a chattel loan can be used to finance just the structure itself.
These loans are often used in mobile home parks and carry higher interest rates than standard mortgages. The terms are usually shorter—often 15 to 20 years—and lenders tend to require stronger credit scores, usually 680 or higher.
Chattel loans can be a good choice for buyers who are financing only the home (not the land) and are prepared for more stringent requirements.
Personal Loans
In some situations, you can use a personal loan to finance your mobile home—especially if you’re buying a used unit or only need to borrow a smaller amount. These loans are not tied to real estate and often don’t require collateral, which speeds up the approval process.
Personal loans tend to come with higher interest rates and shorter repayment terms, which can lead to higher monthly payments. Loan limits may not be sufficient to cover a brand-new home, but they can be a viable option for older or smaller models.
This approach is best for buyers who value speed and flexibility and are comfortable managing a shorter-term financial commitment.
How to Finance a Mobile Home in California
If you’re wondering how to get a mobile home loan in California, here’s a simplified process to help guide your next steps.
Step 1: Know your credit score
Your credit score affects your loan options and interest rates. Check your score early and take steps to improve it if needed—such as paying off debt or correcting credit report errors.
Step 2: Find the right lender
Not all lenders finance mobile homes, especially on leased land. Look for lenders that offer FHA, VA, or chattel loans and have experience with manufactured housing.
Step 3: Get prequalified
Prequalification gives you an estimate of how much you can borrow. It helps you set a budget and shows sellers you’re serious.
Step 4: Calculate your costs
Factor in the home price, down payment, loan term, interest rate, and monthly costs like lot rent, insurance, and taxes. Use a loan calculator from BankRate or LendingTree to see what fits your budget.
Step 5: Apply for the loan
Apply to one or two lenders and compare offers. Look at interest rates, fees, and repayment terms. Don’t apply to too many lenders at once—too many credit checks can lower your score.
Step 6: Review final details
Before closing, confirm the home meets loan requirements and review the community’s lease terms, fees, and rules. Make sure you’re clear on the total monthly cost before signing.
Final Thoughts
Financing a mobile home in California can feel complex at first, but once you understand your options and the process, it becomes much more manageable. Whether you’re considering an FHA loan, a VA program, or exploring chattel or personal loans, the key is to choose the solution that fits your financial profile and long-term goals.
At Storz Management Company, we’re proud to support affordable living by offering quality mobile home communities across California, Oregon, and Nevada. If you’re ready to explore your options, give us a call at (916) 989-5333 or contact us here to learn more.
