Manufactured homes, also commonly referred to as mobile homes, are homes prefabricated in a factory rather than built on site. A manufactured home costs an average of $85 per square foot — almost half of what a site-built home costs, according to the Manufactured Housing Institute. Because of that price difference, mobile homes have become an appealing option for homebuyers. If you’re not able to front the cost, however, a personal loan for a mobile home is a viable option.
Types of mobile homes
“Mobile homes” is a term often used to describe the modern manufactured home. But mobile homes, manufactured homes, and modular homes were distinguished from one another in 1976 because of changes in policies set by the Department of Housing and Urban Development (HUD).
There are three main types of “mobile homes,” though there is some overlap between the types.
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Mobile home
These were mass-produced after World War II to be more affordable housing options. But in 1974, Congress passed the National Manufactured Housing Construction and Safety Standards Act, which standardized manufactured home construction, and the Housing Act of 1980 subsequently mandated that such homes built after June 15, 1976, be referred to as “manufactured homes” in federal laws and literature.
Mobile homes are relatively small, factory-built houses that were transported to a location and used as a permanent home. There are single-wides, which are a smaller option, or double-wides, a larger option that are formed from two separate pieces and put together on site.
Both options could generally be moved again after their initial assembly, but the ease of such a move depends on factors including the age and condition of the mobile home, how much it weighs, and how far you wish to move it.
Manufactured home
Manufactured homes were previously known as “mobile homes,” but after 1976, they were distinguished from mobile homes with a red certification label placed on each transportable section’s exterior. Manufactured homes are made in factories and built to comply with HUD code, then moved to a permanent site. However, they can be larger and more customizable than single- or double-wides, and are not usually meant to be moved again after their initial set-up.
Modular home
Modular homes are a type of manufactured home that have parts built in a factory and then assembled and placed on a permanent foundation. They require more on-site construction than manufactured homes and aren’t intended to be moved once installed.
Learn More: What Type of Insurance Do You Need for Modular Homes?
Pros and cons of using a personal loan for a mobile home
A personal loan is a loan that is usually a fixed rate, meaning the interest rate won’t change from month to month, and unsecured, meaning you don’t have to provide collateral to “secure” the loan. These loans come in a lump sum and you repay them in installments over a period of time. They have few restrictions around their use and are often used to make major purchases, cover emergency expenses, or to consolidate debt.
Pros:
- Less time-consuming process: Most home loans will be backed by the home you’re purchasing, which creates a longer process with many steps. Since personal loans are usually based on your credit score and history rather than the home you’re buying, it’s generally a smoother and faster process.
- Can save on fees: Many home loans may include fees for things such as home inspections, appraisals, and closing costs. Personal loans don’t come with these expenses — though you may see an origination fee or prepayment penalty, depending on the lender.
- Don’t need to own land: Some loan options will require you to own the land where you plan to install your manufactured home. This isn’t the case with personal loans.
- No collateral needed: If you default on your loan, your home won’t be taken, as most personal loans are unsecured and don’t require you to back the loan with something you own, like your home.
Cons:
- May not qualify for a large enough loan: While mobile homes are less expensive than traditional homes, you still may have difficulty qualifying for a personal loan large enough to purchase the one you want. The average cost of a new manufactured home was $125,000 in April 2023, according to the U.S. Census Bureau. Many lenders offer maximum loan amounts of $100,000 for personal loans, and you may not be able to qualify for the maximum amount.
- Might be able to get a lower interest rate with a mortgage: The average fixed-rate mortgage has a 7.31% interest rate as of September 2023, compared to an 11.48% interest rate for a personal loan as of May 2023, according to data from the Federal Reserve.
- Will have to repay quickly and can expect much higher payments: Personal loans have much shorter repayment terms than loans designed to be used to purchase a home, which make the monthly payments quite high.
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Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — as of this writing, Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Note that unlike most lenders, Lightstream does not let you prequalify. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
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Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
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Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
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SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number. Once you have a loan with SoFi, you may be eligible for unemployment protection and unemployment assistance.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
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Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
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LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 6%.
Eligibility
Available in all 50 states
Time to get funds
Usually takes about 2 days
Loan uses
Debt consolidation, paying off credit cards
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Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 4.75%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
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It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 710). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
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Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
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Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
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BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewFees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
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OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewOther types of financing for mobile homes
If a personal loan doesn’t sound like the right option for you, here are other ways you can finance your mobile home.
FHA Title 1 loan
The Federal Housing Administration (FHA) works with private lenders to help people buy manufactured homes. This program helps buyers get longer repayment terms and lower interest rates than they might be able to with traditional loan options.
Fannie Mae manufactured housing loan
Another federal program that helps buyers afford manufactured homes, these are mortgages with at least a 5% down payment available to borrowers with credit scores of at least 620. These loans allow purchases of a variety of manufactured homes, and offer temporary interest rate buydowns that help borrowers save on interest.
Fannie Mae also offers another program called MH Advantage. However, these loans can only be used for properties built to certain standards consistent with site-built homes. MH Advantage requires a minimum down payment of 3% and offers higher loan-to-value (LTV) ratios up to 97%.
Freddie Mac mortgage
These are another loan option for low- and middle-income borrowers. These fixed-rate mortgages come with extra paperwork for manufactured homes, however, as these types of loans are considered riskier.
VA loan
These loans, backed by the Department of Veterans Affairs, are available to veterans, service members, and their family members. They are available for up to 95% of the purchase price, and for repayment terms of up to 25 years and 32 days, though the term will be based on the type of manufactured home you buy, such as a single-wide versus a double-wide.
USDA loan
This U.S. Department of Agriculture program helps low- and middle-income borrowers in rural areas buy a single-family home, including manufactured housing. The monthly payments are based on the applicant’s income and can’t be more than 29% of their gross monthly income.
Chattel mortgage
These mortgages are available for moveable property, meaning that you won’t have to own the land you plan to live on to take out this kind of mortgage. These loans tend to come with higher interest rates than other mortgage options. Research from the Consumer Financial Protection Bureau also finds that chattel mortgage borrowers are less likely to refinance, and face high denial rates.
| | | | Land ownership requirement |
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| | | Minimums vary by lender, but you will likely need a FICO score of 670 or higher to qualify for competitive rates | |
| Up to $92,904 (for both lot and home) | Up to 25 years and 32 days | | |
Fannie Mae manufactured housing loan | | | | Yes, unless the home is located in a co-op or condo project |
| | | | Yes, unless the home is located in a condo project. Mortgages secured by manufactured homes located on leasehold estates that meet certain requirements are also eligible with prior written approval. |
| 95% of total purchase price including a funding fee | Up to 25 years and 32 days, depending on property type | No official minimum, but will need to earn enough to take on a loan and have a good credit score | |
| Determined by state and county | | No official minimum, but will need to show the ability to manage debt | |
| | | | |
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FAQ
How do I compare personal loans for mobile homes to other financing options?
Some of the most important factors to consider when you compare loans include interest rates, fees, monthly payment amounts, repayment terms, and minimum credit requirements. Take a close look at the total cost of the loan over time, and make sure the monthly payment fits comfortably into your budget.
What are the interest rates on personal loans for mobile homes?
Personal loan rates can vary widely, but remember that the lowest advertised rate will only be available to certain borrowers — those with high credit scores and healthy incomes that aren’t already carrying a lot of debt. As of May 2023, the average interest rate for a two-year, fixed-rate personal loan from a bank was 11.48%, according to the Federal Reserve.
Can I use a personal loan for a mobile home if I have bad credit?
If you can qualify for the amount you need, yes, you can use a personal loan to buy a mobile home, even with bad credit. However, with a low credit score you may struggle to qualify for a large enough amount, and you may find that the interest rates for low-credit borrowers are too high to justify the purchase.
How do I get a personal loan for a mobile home?
Prepare to apply by checking your credit report for errors that might be bringing down your score. Next, prequalify with a range of lenders, including banks, credit unions, and online lenders. Compare the offers to see which is best for you. Once you’ve determined which is right for you, finish the paperwork and begin planning for repayment.
Meet the expert:
Hilary Collins
Hilary Collins is a finance writer and editor. She loves taking topics that could be dry and complicated and turning them into engaging stories with actionable takeaways.