Use Our Mobile Home Calculator to Estimate Your Monthly Payments
Factor in principal, interest, taxes, insurance, and lot rent to get an accurate payment.
How to Use the Mobile Home Loan Calculator
- Enter Purchase Price
- Enter Down Payment – Either by percentage or dollar amount. As you adjust the purchase price, the percentage locks and the down payment automatically updates.
- Adjust Interest Rate – Mobile Home Loan Rates are typically higher than normal real estate, but there is no PMI.
- Select Loan Term
- Enter Annual Taxes and Insurance
- Enter Lot Rent
If you have questions regarding loan programs and requirements, check out our Mobile Home Loans page.
Why are Mobile Home Interest Rates Higher?
Interest rates depend on perceived risk – higher risk means lenders charge more to offset potential losses. When comparing mobile home interest rates to traditional real estate, it’s important to consider several factors:
- No PMI: Mobile Homes do not require private mortgage insurance because the financing is not a traditional mortgage.
- Market Liquidity: Traditional mortgages are generally sold to Fannie Mae, Freddie Mac, or Ginnie Mae. Mortgages are very liquid, and lenders and servicers buy and sell loans often. Investors have decades of data, and there is plenty of demand which drives mortgage rates down. In contrast, mobile homes are still misunderstood by most investors. There isn’t much liquidity with investors, the loans are not government backed, and there isn’t much data to study. There is less competition and more unknown factors, increasing perceived risk, which keeps rates elevated.
- Portable: Mobile homes are unique in that they can be moved, which increases risk for lenders – even though the majority of homes will only be placed once. It is possible a home can be relocated, which includes unknown costs the owner will incur, and the lender might not be aware of where the home is relocated to. In the case of default, the security for the lender (the home) could have moved in the future without the lender knowing.
- Financing Closing Costs: Mobile home financing also allows you to roll in closing costs, something most traditional mortgages do not allow. This does increase the amount financed, and increases the risk on the loan.
Frequently Asked Questions
What’s the difference between a mobile home chattel loan and a mortgage?
A chattel loan is a type of financing used when you’re purchasing a mobile or manufactured home that isn’t permanently attached to land. The home itself is considered personal property—similar to a vehicle—so rates are typically higher and terms shorter.
A mortgage loan treats the mobile home as real estate, usually when it’s affixed to owned land. Mortgage rates are generally lower, offer longer terms, and come with more consumer protections.
What credit score do I need for a mobile home loan?
TruPath has programs that allow for a minimum credit score of 550 for a mobile home mortgage. Requirements changed under 575 credit. A higher credit score generally means better interest rates and more loan options.
How long can I finance a mobile or manufactured home?
Mobile Home terms range from 10-25 years, with the majority of our clients choosing 20-25 year loans. Manufactured homes that are permanently affixed to land can be up to 30-40 years.
Can I include land in my mobile home loans?
If you own the land, or are purchasing it with the home, you can finance both with a mortgage loan. If the home is placed in a park with a lease, you’ll need a mobile home loan (chattel loan) for just the home, and then a separate agreement for the land lease.
Do mobile home loans require private mortgage insurance (PMI)?
No, mobile home loans do not require PMI, even with a smaller down payment.
Can I finance closing costs into a mobile home loan?
Typically, yes. TruPath Home Loans mobile homes allow you to finance up to a certain amount of closing costs, rather than paying costs at closing. This helps reduce your out of pocket cost at closing