Navigating Financing Options for Your Manufactured Home Purchase

 Buying a manufactured home isn't just a smart housing choice — it's a strategic decision about affordable, flexible, and free lifestyle choices.

But before you choose your floor plan or where to put your home, there's one piece of the puzzle that's missing — you’re financing.

At Jaco Sales, we know manufactured home financing can be overwhelming. That's why we're breaking it down for you — simple, straightforward, and in plain language. Whether you're a first-time buyer or a seasoned homeowner looking to downsize, there are options for you to understand and feel good about using to meet your needs. Let's get started.

1. What Makes Manufactured Home Financing Different?

Manufactured homes, or mobile and modular homes, are those that are built in factories and delivered to their final destination. As manufactured homes are not always attached to a permanent foundation or do not include a land value, they might not be suitable for conventional mortgage financing.

But this does not mean that you don't have options! You can look at a variety of mixed government-backed and private loan programs that are appropriate to the unique qualities of manufactured homes. The key is understanding the types of loans available to you and finding one that is relevant to your financial needs, requirements, and ownership intentions.

2. FHA Loans: Affordable Financing with Low Barriers

FHA loans are government-backed loans by the Federal Housing Administration that help buyers get through the loan process for moderate low credit scores or low-down payments.

Why Consider an FHA Loan?

1. Down payments that can be as low as 3.5%
2. Low credit score requirements (score could be as low as 580)
3. Offered for homes-only or homes with land
4. Fixed rate and competitive interest.

Are You Eligible?

The house must be occupied as your primary residence, and items must adhere to HUD safety standards. At Jaco Sales, we can walk you through the checklist to qualify your home.

3. VA Loans: The Best Choice for Veterans

VA loans provide excellent benefits to Veterans, active-duty service members, and qualified spouses. VA loans for manufactured housing are one of the only options available to finance a home with no money down, making homeownership more obtainable to those who have served our country.

Benefits Include:

1. No down payment
2. No PMI (private mortgage insurance)
3. Flexible credit and debt ratio requirements
4. Lower interest rates than conventional loans

If you are a Veteran purchasing a manufactured home on a permanent foundation a VA loan is going to be an excellent path to homeownership.

4. Conventional Loans: Best for Strong Credit Buyers

Conventional loans for modular homes are offered by private lenders and generally require a higher credit score, but they can give long-term benefits to qualified buyers.

Highlights:

1. Flexible terms and loan structures
2. Can finance a primary residence, second home, or investment property
3. Lower total interest over the term of the loan for qualified buyers

Modular homes — a close cousin to manufactured homes — may also qualify for these types of loans, particularly if the home is permanently affixed and zoning regulations are met.

5. Chattel Loans: Ideal for Home-Only Purchases

If you are purchasing a manufactured home that will be placed on rented land, will be in a mobile home park, or will not be on any land, a chattel construction loan may be the best option for you.

Features:

1. Faster approval
2. The home is classified as personal property.
3. Shorter loan terms (15-20 years) Higher interest rates

This option is popular with buyers who are flexible and plan to move their home in the future.

6. How Jaco Sales Makes Financing Seamless

At Jaco Sales, we provide more than just assistance in buying a home. We work with you to simplify and support the entire buying experience, including financing for your manufactured or mobile home.



Here's how we help:

1. Free consultations related to financing and looking at the best loan options for you
2. Access to lenders that we trust and have worked with, that specialize in manufactured and mobile home loans
3. Provide support throughout the entire process of applying, being approved, and all paperwork involved
4. Help you with pre-approval so you feel confident while shopping.

Our team works with lenders to offer our clients FHA, VA, conventional, and chattel loans, ensuring our clients find a loan plan that meets their budgetary needs and their future goals.

7. Bonus Tips for Smooth Financing Approval

To help you get the best deal possible:

1. Check your credit, and if need be, look to improve it

2. Save for a down payment (even small amounts)

3. Have verification of a stable income

4. Have all documentation before starting: tax returns, bank statements, etc.

Don't worry though, we walk you through every phase of buying a home.

8. Let's Get You Home — Together

Getting to finance for a manufactured home doesn't have to be an overwhelming situation. Let us provide you with the right guidance to ensure you have an empowered first step towards your dream home.

While you might find yourself leaning towards an FHA loan for mobile homes, VA benefits, or a conventional route, Jaco Sales financing assistance can help make sense of everything. We have been in business for many years and have assisted thousands of buyers in living their manufactured housing dreams, we are ready to help you!

Are you ready to explore financing options?

Visit Jaco Mobile Homes or contact us today to schedule a financing consultation. We'll help you find a home and financing to fit your situation. Happy Housing!