While it can be challenging, it is not impossible to find financing for manufactured homes. One of the problems which may develop with lenders is due to the fact manufactured homes or mobile homes do not have deeds like a brick and mortar home.

Instead they have titles, like motor vehicles. In the eyes of lenders, this makes it easier for owners to skip on their payments without notifying the lender. After all, basically all they have to do is hook up to a tractor-trailer and be on their way. Even worse, as long as they stay in the same state where the manufactured home is registered, there is little likelihood they will be caught.

Another reason it can be difficult to find financing for a manufactured home is because it depreciates like a car rather than appreciating like a brick and mortar home. It is for this reason those lenders who finance manufactured homes want to be sure they cover their costs up front by insisting on a larger down payment, which is quite often in the range of 20-25% of the sales price of the home.

While it may seem like a substantial amount for a first time home buyer, it’s important to remember there are no closing costs on manufactured homes, just a title transfer fee and depending where you live maybe a sales tax.

Do not make the assumption that every bank and credit union will finance your manufactured home because it doesn’t always work that way. You need to conduct your own research rather than relying on the distributorship to find your financing, as you may find a lower interest rate and not to have to put as much money down. You also want to remember the age of the manufactured home will have an impact on not only the interest rate but the length of the financing term as well.

Taking the initiative yourself may very well provide you with better financing options than you would have by letting the dealership handle it. It will take you some time to accomplish, but the end result will be well worth the effort you exert.