Unlock Your Texas Home: Finding the Right Manufactured Home Loan

Why Manufactured Home Loans Texas Open Doors to Affordable Homeownership

Manufactured home loans Texas provide a practical path to homeownership, especially for those with tight budgets or credit challenges. Texas leads the nation with over 1.1 million manufactured homes, offering an affordable alternative to traditional housing.

Quick Answer: Your Texas Manufactured Home Loan Options

1. FHA Loans – Government-backed financing with as little as 3.5% down
2. VA Loans – 100% financing for eligible veterans and service members
3. USDA Loans – Zero-down options for rural Texas properties
4. Conventional Loans – Traditional mortgages when home and land are treated as real property
5. Chattel Loans – Personal property loans for homes on leased land

Key Facts:

• Manufactured homes cost 10-50% less than site-built homes in Texas
• Average new manufactured home: $85,000
• Average used manufactured home: $55,000
• Homes built after June 15, 1976 qualify for most loan programs

The dream of homeownership is within reach. Modern manufactured homes offer quality, customization, and energy efficiency at a fraction of the cost. Navigating the financing landscape requires understanding which loan fits your situation, whether you own land, and how Texas regulations protect you.

This guide covers every step of securing financing for your manufactured home in Texas, from understanding loan types to preparing your application and finding the right lender.

Understanding Your Loan Options: FHA, VA, USDA, and Conventional

Financing a manufactured home in Texas differs from a traditional house, but it’s straightforward once you know the basics. The key is whether your home is considered “real property” or “personal property,” as this determines your loan options.

Real Property vs. Personal Property: Why It Matters

When a manufactured home is on a permanent foundation on land you own, and both are titled together, it’s real property. This opens the door to traditional mortgages with better rates and longer terms. If the home is on leased land or not permanently affixed, it’s personal property, typically financed with a chattel loan. Chattel loans are like vehicle loans, often with shorter terms and higher interest rates, but they close faster and are ideal for home-only purchases.

Traditional mortgages are available when a manufactured home is built after June 15, 1976, permanently affixed to owned land, and titled as real property. This can save you thousands over the life of the loan.

Financing New vs. Used Manufactured Homes

Financing is available for both new and used homes. New homes generally offer more straightforward financing. Lenders will finance used homes but may scrutinize the home’s age, condition, and HUD code compliance. Most loans require homes to be built after 1976. For more details, see our New Mobile Home Financing Guide 2025.

Loan Type	Down Payment	Credit Score	Property Type (Often)	Key Benefit
FHA Loans	3.5%	Moderate	Real Property	Low down payment, flexible credit
VA Loans	0%	Moderate	Real Property	100% financing for veterans
USDA Loans	0%	Moderate	Real Property (Rural)	No down payment for eligible rural areas
Conventional	5-20%+	Good to Excellent	Real Property	Competitive rates, flexible terms
Chattel Loans	5-20%+	Moderate	Personal Property	Home-only financing, faster closing

Government-Backed Loans

Government-backed loans make homeownership more accessible with forgiving credit requirements and low down payments.

FHA loans, insured by the Federal Housing Administration, are popular for their low 3.5% down payment requirement.

• Title I loans are for homes as personal property (chattel loans) or for purchasing a lot. Loan limits are updated annually; see the FHA Title I Loan Limits for 2024 for current figures.
• Title II loans are for financing the home and land together as real property, offering higher loan limits and terms comparable to traditional mortgages.

VA loans, backed by the Department of Veterans Affairs, are a great benefit for service members, veterans, and eligible spouses, often allowing 100% financing with no down payment and competitive rates.

USDA loans, from the U.S. Department of Agriculture, offer zero-down payment options for eligible borrowers in qualifying rural Texas locations.

Conventional and Specialized Loans

Conventional mortgages are not government-insured, so they typically require higher down payments (5-20%) and stronger credit. The home must be real property and meet HUD standards. Lenders specializing in manufactured housing can offer competitive terms, though some may have specific requirements, like only financing double-wide units. Our team at Manufactured Housing Consultants can guide you to the right lenders. For more, explore our Mobile Home Financing resources.

Home-only loans (chattel loans) are for purchasing the home while leasing the land. They have shorter terms (15-20 years) and higher rates but offer flexibility if you don’t own land.

Navigating the World of Manufactured Home Loans Texas

Getting manufactured home loans Texas approved involves understanding how your home, land, and state regulations interact. The biggest factor for lenders is whether you own the land where the home will sit.

Owning your land allows you to qualify for traditional mortgages with better rates and terms. For these loans, the home must be on a permanent foundation meeting local and state codes. This process—removing the hitch and axles and anchoring the home—transforms it from personal to real property, saving you thousands.

In Texas, a Statement of Ownership and Location (SOL) is filed with the Texas Department of Housing and Community Affairs (TDHCA) to officially convert the home to real property, a key step for mortgage approval. The TDHCA oversees the industry, while Finance Code Chapter 347 regulates credit transactions, ensuring strong consumer protections.

Eligibility for manufactured home loans Texas

Both the borrower and the home must meet specific requirements.

For the home, it must:

• Meet the federal HUD Code for safety and quality.
• Be built after June 15, 1976.
• Be permanently affixed to a foundation for traditional mortgage financing.

For the borrower, lenders look for:

• Stable income to handle monthly payments.
• A healthy debt-to-income (DTI) ratio.
• A good credit score.

For a complete overview of Texas home financing, see our guide on Getting a Mortgage in Texas.

The Role of Land: Owned vs. Leased

Your land situation is the biggest factor in your financing options.

Owning your land gives you access to FHA, VA, USDA, and conventional mortgages, which offer lower rates and longer terms because the home and land become a single piece of real estate. Many lenders offer land-and-home packages to finance both in one transaction, simplifying the process. Our Home Land Package Loan Guide explains how these work. If you have equity in land you’re paying off, you may be able to use it as a down payment (land-in-lieu equity).

Leasing land in a community or on a rented lot typically limits you to chattel loans. These treat the home as personal property, resulting in higher interest rates, shorter terms, and faster depreciation. While more costly over time, leasing can be a practical choice if you’re not ready to buy land. Learn more in our guide on How to Buy Land and a Manufactured Home.

Texas State Laws and Consumer Protections

Texas has strong laws to protect manufactured home buyers, primarily under FINANCE CODE CHAPTER 347. MANUFACTURED HOME CREDIT TRANSACTIONS. This law ensures you are treated fairly.

Key protections include:

• Disclosure Requirements: Lenders must provide clear, comprehensive loan information before you sign.
• Right to Prepay: You can pay off your loan early at any time without penalty and receive a refund of unearned interest.
• Adjustable-Rate Rules: The law sets clear limits on how and when adjustable interest rates can change, requiring 40 days’ notice.
• Fee Caps: Charges for delinquency or loan transfers are legally capped to prevent excessive fees.
• Licensing: All creditors and loan originators must be licensed, ensuring they meet professional standards.

These protections allow you to proceed with confidence. At Manufactured Housing Consultants, we partner exclusively with reputable lenders who respect these laws.

The Financial Details: Credit, Rates, and Down Payments

Your credit score, interest rate, and down payment are the key numbers that determine your approval and costs for manufactured home loans Texas. When comparing offers, always focus on the Annual Percentage Rate (APR), which reflects the true cost of the loan, including interest and fees.

Your down payment reduces the amount you borrow, while closing costs (typically 2-5% of the loan amount) are fees paid to finalize the loan. Budget for both.

Your Credit Score’s Impact

Your credit score heavily influences your loan approval and interest rate. Lenders use your FICO score, with minimums varying by loan type:

• FHA loans: Often as low as 580.
• Conventional loans: Typically 620-640 or higher.

A high score (780+) can secure the best rates, potentially saving you tens of thousands in interest over the loan’s term. Better credit also affects down payment requirements and can help you avoid private mortgage insurance (PMI). Learn more in our resource on Home Loan Credit.

If your credit isn’t perfect, options still exist. Many specialized lenders work with borrowers who have faced financial challenges. At Manufactured Housing Consultants, we believe your past shouldn’t block your future. Our FICO improvement program is designed to help you boost your score and qualify for better rates. Explore your options on our Poor Credit Home Loans page.

Understanding Interest Rates and Down Payments

Interest rates for manufactured homes are competitive, though chattel loans may have slightly higher rates. With excellent credit and a home treated as real property, you might find 30-year fixed rates around 6.250% (6.355% APR) or 15-year fixed rates near 5.875% (6.006% APR).

Down payment requirements vary significantly by loan type:

• FHA Loans: As little as 3.5% down.
• VA & USDA Loans: Often 0% down for eligible borrowers.
• Conventional & Chattel Loans: Typically 5% to 20% down.

If you own your land free and clear, some lenders may accept your land equity in place of a cash down payment. Additionally, down payment assistance programs at the federal, state, and local levels can provide grants or low-interest loans. NerdWallet offers a helpful guide on down payment assistance. We also provide Flexible Financing Options to make homeownership achievable.

Improving your credit, increasing your down payment, or finding a lower rate can significantly reduce your total loan cost.

Your Step-by-Step Application Guide

Now it’s time to apply for your manufactured home loans Texas. With the right preparation, this process can be straightforward and exciting.

Finding Lenders for manufactured home loans Texas

Not all lenders specialize in manufactured housing. It’s best to work with those who understand this unique market, including specialized lenders, credit unions, and some banks. An experienced lender knows the requirements for HUD codes, permanent foundations, and different loan types, ensuring a smoother process.

Once you identify potential lenders, request a loan estimate from each. This standardized document details the loan terms, interest rate, APR, and estimated closing costs. Compare them side-by-side, paying close attention to the APR and fees, as they reveal the true cost of the loan. A good lender will gladly clarify any questions you have.

Preparing Your Application

Being prepared makes a strong impression and speeds up the process. You will need to provide a complete picture of your financial health.

Gather these key documents:

• Identification: Photo ID and Social Security number.
• Proof of Income: Recent pay stubs (last 30 days), W-2s (past two years), and tax returns (past two years), especially if self-employed.
• Asset Verification: Bank statements from the last 2-3 months.
• Residential & Employment History: For the past two years.
• Down Payment Funds: Proof of funds or gift letters.
• Property Information: If you own land, provide the deed, survey, and tax statements.
• Home Details: Manufacturer, model, serial number, and proof of HUD certification.

The pre-approval process is a smart first step. A lender reviews your finances and determines how much you can likely borrow. This gives you a realistic budget and shows sellers you are a serious, qualified buyer. Think of it as a financial GPS for your home search. Our Mobile Home Financing: Pre-Approval Process guide explains what to expect.

At Manufactured Housing Consultants, we work with lenders who specialize in all types of financing. We’re here to help you steer the application from pre-approval to closing day.

Frequently Asked Questions about Manufactured Home Loans in Texas

Can I get a loan for a used manufactured home in Texas?

Yes, financing for used manufactured homes is widely available. Lenders will focus on a few key factors. The home’s age is important; most prefer homes built after June 15, 1976, when federal HUD safety standards were implemented. They will also verify the home’s condition, often through an inspection, to ensure it remains structurally sound. While loan terms might differ slightly from new home financing, owning a quality pre-owned home is absolutely achievable.

What is the main difference between a manufactured home loan and a traditional mortgage?

The primary difference is how the property is classified. A traditional mortgage is used for “real property,” where the manufactured home is permanently attached to land you own and titled together as a single piece of real estate. This setup qualifies you for loans with longer terms (15-30 years) and lower interest rates.

If the home is considered “personal property” (e.g., on leased land), you’ll need a chattel loan. These function like auto loans, typically with shorter terms (10-20 years) and higher interest rates. The key to better financing is structuring the purchase as real property.

Can I finance both the home and the land together?

Absolutely. Financing the home and land together in a single transaction is a smart and common approach. Lenders offer “land-and-home packages” that streamline the process into one loan, one closing, and one monthly payment. This saves you time, money, and paperwork.

These packages are often available through FHA, VA, USDA, or conventional construction-to-permanent loans. This approach ensures your home is treated as real property from the start, securing better mortgage terms and allowing you to build equity in both the home and land simultaneously. Our Home Land Package Loan Guide provides more detail on how this process works.

Conclusion: Your Path to Texas Homeownership

You now have a clear map for using manufactured home loans Texas to achieve your homeownership goals. Texas offers an incredible opportunity for affordable homeownership, with costs significantly lower than site-built homes.

We’ve covered the landscape of financing options, the importance of land ownership, and the financial details that shape your budget. Most importantly, you’ve learned that strong Texas consumer protection laws are in place to safeguard your rights.

Your preparation makes all the difference. Gathering documents, understanding your credit, and getting pre-approved are your tools for success. They provide clarity, confidence, and leverage in your home-buying journey.

If your credit is a concern, don’t let it stop you. At Manufactured Housing Consultants, our FICO improvement program is designed to help you boost your score and qualify for better loan terms. We work with all credit types because we believe everyone deserves a path to homeownership.

With locations in Victoria, South Texas, and Corpus Christi, we offer the guaranteed lowest prices and the largest selection from 12 manufacturers. Our team specializes in manufactured home financing and is here to guide you through every step.

Your new home is waiting. Let’s make it happen together.

Ready to take the next step? Tour our homes in Victoria and start your journey today. For more resources, explore our articles tagged under Mobile Home Loans.