How to buy a manufactured home and land

With rising housing costs, you might be considering manufactured homes to meet your homeownership goals without breaking the bank. Manufactured homes – properties built in a factory and then shipped to their permanent location – are often more affordable than traditional single-family homes.

In the rest of the article, we’ll discuss how to buy manufactured or mobile homes, why you might want to consider one, and some of the benefits and drawbacks to this option. If you’re thinking about buying a manufactured home, this article should help you get the information that you need.

Can you buy a manufactured or mobile home and land together?

You can use a single mortgage loan to simultaneously purchase a manufactured home and the land it’ll sit on.

The way you go about this will depend on whether the manufactured home will be permanently connected to its foundation and attached to the land. Let’s take a look at both scenarios.

A manufactured home that’s permanently connected

If your manufactured home will be permanently connected to its land on a foundation, you can finance the purchase of your home and its land with one mortgage loan as a manufactured home and land package. Most commonly, you’ll take out a fixed-rate mortgage loan. A fixed-rate mortgage is with the interest remaining the same.

A manufactured home that’s not permanently connected

If your home isn’t permanently attached to the land or you’re leasing the land on which the home sits, you can’t finance the home and land together with a conventional mortgage loan. That’s because movable homes are considered personal property and not real estate.

In such cases, you can apply for financing directly from the home’s manufacturer or apply for what’s known as a chattel mortgage – a loan specifically designed to finance the purchase of movable structures or other types of personal property.

Manufactured vs. mobile vs. modular homes

While many people use the terms “manufactured home,” “mobile home,” and “modular home” interchangeably, they all mean different things.

• Manufactured home: The Department of Housing and Urban Development considers a manufactured home to be one built in a factory on or after June 15, 1976. Homes built on or after this date must follow HUD’s construction and safety standards for manufactured homes. This helps ensure that today’s manufactured homes are quality structures.
• Mobile home: Mobile homes are homes constructed in a factory mobile home before June 15, 1976. HUD didn’t have any construction standards in place for manufactured homes before that date. It’s much more difficult to get a loan on pre-1976 mobile homes.
• Modular home: While modular homes are also built off-site in a factory and then assembled on the land where they’ll sit, they differ from manufactured and mobile homes in that they must follow the building codes in the state and county where they’ll be installed.

The cost of buying a manufactured home with land

People often choose manufactured or modular homes because their price tags tend to be lower. But how much can you expect to pay when buying both a manufactured home and the land beneath it?

Land cost

The cost of land can range from as little as $4,000 per acre to more than $100,000 per acre, depending on where you live. LandSearch estimates that the national average price for land at $18,442 per acre. You can choose to pay for your land outright or get a land loan.

Manufactured home cost

The average cost of a manufactured home in 2025 was $123,300, according to the Manufactured Housing Institute. Single-section homes averaged $83,240, while multi-section homes averaged $158,339. The median sale price of traditional homes in the United States in 2025 was $446,000, so you can see why many people looking for affordable homes are turning to manufactured homes.

Here are some of the factors that can affect the cost of a manufactured home:

• Home size: The larger your manufactured home, the more you’ll pay. A larger home generally will cost more in materials as well as potentially more to ship.
• Add-ons and customizations: The more features you add to your manufactured home’s base model, the more you’ll pay. For example, you’ll likely pay extra if you upgrade cabinets and kitchen countertops to higher-quality models, or if you add a fireplace or higher-end appliances.
• Foundation: If you want to qualify for a mortgage, your manufactured home will usually need to rest on a foundation. That can add extra cost to your budget.
• Utility hookups: Hooking up utilities are an additional cost that you’ll want to make sure to account for in your budget.
• Delivery: Once your home is built in a factory, it will be shipped to your land. This isn’t free, either. The size of your home and the distance of the move will affect the amount you have to pay for delivery.
• Taxes: Once your home is set up, you’ll have to pay property taxes to your local government each year. The amount you pay will vary depending on where you live and the value of your home.

Loan options for buying a manufactured home with land

There are several types of loans you can use to buy a manufactured or mobile home. If you’re looking for a home and land package, there are a few options for mobile home loans. Here are a few of the most popular:

Conventional loan

A conventional loan is a loan not insured by a government agency but by a private lender. Here are the basic requirements to be approved for a conventional loan you’ll use to finance the purchase of a manufactured home:

• Credit score: 620
• Debt-to-income ratio (DTI): 43%
• Down payment: 3%
• Maximum loan amount: $806,500 in 2025

FHA loan

FHA loans are insured by HUD’s Federal Housing Administration. This kind of loan can be attractive to borrowers because of its relaxed credit score requirement. Here are the basic requirements to be approved for an FHA loan you’ll use to finance the purchase of a manufactured home:

• Credit score: 500, though many lenders require a minimum of 580
• DTI: 43%
• Down payment: 3.5% with a credit score of 580; 10% if your credit score is between 500 and 579.
• Maximum loan amount: $105,532 and $193,719 (single-section and multi-section); $148,909 and $237,096 for home and lot; $43,377 for lot

VA loan

VA loans are only available to qualifying active-duty service members, veterans, surviving spouses and those who’ve served in the National Guard or Army Reserve. These loans are attractive because you usually don’t need any down payment. This isn’t the case, though, when you’re financing the purchase of a manufactured home.

Here are the basic requirements to be approved for a VA loan you’ll use to finance the purchase of a manufactured home:

• Credit score: 580
• DTI: 43%
• Down payment: 5%
• Maximum loan amount: None

USDA loan

USDA loans, insured by the U.S. Department of Agriculture, are attractive because you won’t need any down payment. Note that Rocket Mortgage doesn’t offer USDA loans at this time. You must purchase a home in a designated rural area to qualify for a USDA loan. Here are the basic requirements to be approved for a USDA loan you’ll use to finance the purchase of a manufactured home:

• Credit score: 640
• DTI: 43%
• Down payment: None
• Maximum loan amount: None

Chattel mortgage

A chattel mortgage is a type of loan designed specifically for movable property and vehicles. Unlike with a traditional mortgage, your lender owns the property you’re financing until you pay off the loan.

• Credit score: 575
• DTI: 43%
• Down payment: 5%
• Maximum loan amount: None

How to buy a manufactured home and land at the same time

If the home doesn’t already come with the land, the most efficient way to buy a manufactured home is to purchase your land at the same time. Because you’re making two purchases at once, this process can get complicated. Next up are the steps you can take to make sure this procedure is a smooth one.

1. Get preapproved for financing

One of the most important steps you can take is getting preapproved for a loan before making an offer on a home. This is just as true for manufactured home loans as it is for loans on traditional single-home loans. There are several different loan types available for manufactured loans, and the interest rate and terms that you get will depend on your credit score, loan term, down payment, and DTI.

2. Find your manufactured home and lot

It is crucially important to find the right manufactured home and lot for your specific situation. You’ll need to decide how large of a home you want, which can also affect the size of your lot. Where you want to live will largely determine how much you pay for your land. You’ll also need to determine whether you want a manufactured home that’s fixed to a foundation or one that’s movable. Movable manufactured homes are less expensive, but finding financing for them is more challenging.

3. Prepare the home site

The company from which you purchase your manufactured home will likely work with you to make sure that your lot is ready for your new home. This process will include applying for permits and preparing utility hookups.

4. Purchase homeowners insurance

You should purchase homeowners insurance for your manufactured home. If you’re applying for a government-insured or conventional loan, this type of insurance is required before your lender approves you for a mortgage.

This insurance will protect you if your manufactured home is damaged or destroyed, if someone breaks into your property and steals your items, or if someone is injured in your home or on your land and then sues you for medical costs.

5. Close on your home loan

Closing on a manufactured home loan is very similar to closing on any kind of house. You will need to provide your financial and property information to the underwriter, and they will review your information before approving your loan. The process usually takes a few weeks, and there will be various closing costs that you will need to pay.

Once everything is in order, the lender will set a date for the actual closing. At closing, you will sign paperwork and pay any closing costs that are still outstanding.                                                                                                                            

6. Have your home delivered and installed

After your land is prepared, the company that sold you your manufactured home will deliver it to the site. Make sure when buying your home that the retailer will take care of this step of the process and that the cost of delivery and installation is included in your final price.

The company that sold you your manufactured home might have employees who’ll complete the installation, or the company might contract with a separate company to handle this part of the process.

7. Move into your new home

Once you’ve closed on your home and it's been delivered and installed, it’s time to move in. You can then start the process of decorating it, customizing it, and making it your own.

The bottom line: Manufactured homes are an affordable housing option

Buying a manufactured home can ease the strain on your budget because this type of residence is almost always cheaper than a traditional single-family home. Finding a mortgage for a manufactured home and selecting the right location for it can be challenging, though. The easiest path forward is if your manufactured home will be permanently affixed to the foundation. In that case, you can finance the purchase with a traditional home loan.

If you’re ready to buy a manufactured home, start the mortgage approval process with Rocket Mortgage to begin shopping for your manufactured home and lot.

Rocket Mortgage is not acting on behalf of FHA or HUD.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.