Thinking of investing in a mobile home in Oregon? Mobile homes are an excellent option for affordable living, offering the flexibility and comfort of a traditional house — without the hefty price tag.

If you’re planning to finance your mobile home, it’s important to understand how the process works before you start your search. Mobile home loans work a little differently compared to standard home mortgages, so understanding your options can help you make the right decision.

We’ll walk you through the different types of mobile home loans available, the pros and drawbacks of each, and how to choose the one that’s right for you.

What Is Mobile Home Financing?

Mobile home financing is pretty much what it sounds like: a loan you can use to buy a mobile home. Unlike traditional mortgages, these loans cover homes that are generally considered personal property — not real estate. The specific type of loan you’ll need will depend on whether the home is permanently attached to land or not.

But what are the different types of loans you might consider? We’ll lay them out below to help you find the one that’s right for you.

What Are the Different Types of Mobile Home Loans?

When you’re ready to invest in a mobile home, there are several financing options to choose from. Here are the most popular types available:

Chattel Mortgage

With a chattel mortgage loan, the mobile home itself is used as collateral, rather than the land it sits on. Banks, credit unions, online lenders, and other financial institutions typically offer these mortgages — so you’ll find plenty of lending options for this one.

  • Pros: You can secure financing for the home without owning the land it sits on. This is ideal for a home that will sit in a mobile home park or on leased land.
  • Drawbacks: Chattel loans usually involve shorter terms and higher interest rates, so they may not be the best option for long-term stability.

FHA Loans

Federal Housing Administration (FHA) loans are another popular option for financing mobile homes in Oregon. The FHA offers two types of loans for mobile homes: Title I and Title II.

Here’s a clearer breakdown of the two:

Title I

FHA Title I loans are designed for mobile homes on leased land or in parks, with no requirement to own the land.

  • Pros: Low down payments (as low as 3.5%) and more lenient credit requirements make it easier to qualify. Fixed interest rates keep your monthly payments steady.
  • Drawbacks: Interest rates are higher than traditional mortgages, and loan terms are shorter (15-25 years), leading to higher monthly payments.

Title II

FHA Title II loans are designed for mobile homes that are permanently affixed to owned land and meet HUD’s construction and safety standards.

  • Pros: Lower interest rates than personal property loans and longer loan terms (up to 30 years) — which means lower monthly payments.
  • Drawbacks: The home must be permanently attached to a foundation, which can increase costs and make installation more complicated.

VA Loans

Are you part of the military or veteran community? If so, you might qualify for a VA-backed loan to finance or refinance a mobile home. To qualify, the home needs to be placed on a permanent foundation and meet HUD code requirements for safety and construction.

  • Pros: You can save money with no down payment or Private Mortgage Insurance (PMI), lowering your upfront costs and monthly payments.
  • Drawbacks: Lenders require that you own — or are in the process of buying — the land for the home, which can limit your eligibility.

USDA Loans

US Department of Agriculture (USDA) loans are designed especially for rural buyers. To qualify for a USDA loan for a mobile home, the property must be on land that you either own or have a long-term lease for.

  • Pros: No down payment is needed, and you can finance both the home and land.
  • Drawbacks: These loans are only available in designated rural areas and to be eligible, you must meet specific criteria set by the USDA.

Fannie Mae and Freddie Mac

Lenders offer these loans to finance mobile homes that meet specific criteria — like being affixed to a foundation and in good condition.

While both are government-sponsored enterprises (GSEs) designed to make homeownership more accessible, Fannie Mae works with larger lenders, while Freddie Mac partners with smaller banks and credit unions.

  • Pros: Low down payment options (as low as 3%) and competitive interest rates. Both the mobile home and the land can be financed if needed.
  • Drawbacks: It can be harder to qualify for these loans compared to other types — especially if purchasing an older mobile home.

How to Choose the Right Mobile Home Financing Option

Here are the factors you should keep in mind to help you choose the mobile home financing option that best fits your current situation and long-term goals:

  • Land ownership: If you’re a landowner, an FHA Title II, VA, or conventional loan may be the best option. Chattel loans or FHA Title I loans are better for homes on leased land.
  • Credit score: Conventional loans offer the best interest rates if you have a higher credit score. But if your score is lower, FHA loans are more forgiving.
  • Down payment and affordability: If you need low upfront costs, consider VA or USDA loans (no down payment) or FHA loans (3.5% down). Chattel loans require higher down payments.
  • Loan terms and rates: FHA Title II and conventional loans usually offer longer terms and lower interest rates for long-term stability. Chattel and Title I loans have shorter terms and higher interest.
  • Eligibility for special programs: VA loans are available for military members and veterans, and USDA loans are great for qualifying rural properties.

Why Private Money Loans Could Be the Best Solution

If traditional mobile home finance options feel out of reach due to strict guidelines or credit challenges — private money loans might be the answer. Private loans might come with higher interest rates, but they’re the best choice for those seeking:

  • Flexible criteria: Private lenders care more about your property and your potential than just your credit score.
  • Quick access to funds: With fewer hoops to jump through, private lenders can approve loans much faster than traditional lenders. Plus, they often greenlight financing for vintage homes and other less-than-traditional projects that banks might hesitate to fund.
  • Personalized terms: You can talk to the lender and agree on terms that work best for you to enjoy more flexibility and control.

Explore Private Loan Options at All Real Estate Loans & Investments Co.

If you’re thinking of opting for a private loan, All Real Estate Loans & Investments Co. is the partner you need.

Reach out to Patty, an experienced broker and one of Oregon’s top lenders for mobile and manufactured home loans. She’s ready to discuss your goals, guide you through financing options, and help you find the best path forward.