Mobile Home Mortgages: What To Know Before You Buy

Jacqueline Jeffries
May 14
2 min read

Mobile homes offer affordability, flexibility, and the chance to own your own space. They can be particularly appealing if you’re looking to live outside the big city. But when it comes to mortgages, mobile homes don’t always play by the same rules as traditional houses.

Here's what to keep in mind:

Land Ownership Makes a Big Difference

Owning the land your mobile home sits on can open up more financing options.

If the home is in a trailer park or on leased land, mortgage options are very limited. Most lenders don’t offer traditional financing unless the land is included in the purchase.

In most cases, if you own the land, the home is (or will be) permanently placed with full utility hookups, is in solid condition, and is located in an acceptable area, then standard mortgage rules generally apply.

If the property is on an acreage, lenders will also consider acreage-specific guidelines. And if it's a seasonal or vacation home, like a lakefront cottage, different lending rules for secondary or recreational properties may come into play.

Amortization is Based on “Economic Life”

Unlike site-built homes, mobile homes are valued based on their remaining economic life. For example, a mobile home built in 1983 might only qualify for a 10-year amortization. That means your mortgage payments could be higher, even if the purchase price is lower.

Newer mobile homes may qualify for longer amortizations, but every lender is different. Some lenders may offer amortization periods up to 25 years, so it’s important to check before you buy.

There are a few other factors to consider, such as whether it’s a modular home, a manufactured (mobile) home, or a ready-to-move (RTM) home.

Seasonal vs Year-Round Use

If the home is meant only for summer use, it likely won’t qualify for a mortgage. Year-round access, proper insulation, and utilities like water and sewer are often required for financing approval.

With a little bit of planning, mobile homes can be a great option. If you’re thinking about buying a mobile (especially an older one), talk to a mortgage expert early in the process. I’m happy to run the numbers and help you understand your options.