Refinancing a Manufactured Home

Refinancing a manufactured home can help you save money and lower your monthly payments. Discover the tips and benefits of refinancing your mobile home and get a free quote today! 


Refinancing a manufactured or modular home can be a valuable financial decision for many homeowners. It can help them secure a lower interest rate, reduce their monthly payments, or even build equity in their property more quickly. However, like any financial decision, refinancing a manufactured or modular home requires careful consideration and planning. This article will explore the requirements and benefits of refinancing a manufactured or modular home, as well as provide a few links to some popular refinance lenders. 


Requirements for Refinancing a Manufactured/Modular Home 

Before diving into the refinancing process, it is important to understand the specific requirements that homeowners must meet to qualify for a refinance loan. Some of these requirements include: 

  • Credit Score: One of the most critical factors in determining whether a homeowner can refinance their manufactured or modular home is their credit score. Lenders typically require a minimum credit score of 620 for conventional loans and 580 for government-backed loans, such as FHA loans. 

  • Loan-to-Value (LTV) Ratio: The LTV ratio is the amount of the loan compared to the appraised value of the property. Most lenders require a maximum LTV ratio of 80% for a conventional loan and 97.75% for an FHA loan. This means that homeowners need to have at least 20% equity in their property to qualify for a conventional loan or at least 2.25% equity for an FHA loan. 

  • Debt-to-Income (DTI) Ratio: The DTI ratio is the percentage of a homeowner's gross monthly income that goes toward debt payments, such as mortgage, credit card, and car loan payments. Lenders typically require a maximum DTI ratio of 43% for conventional loans and 50% for FHA loans. 

  • Property Requirements: To qualify for a refinance loan, the manufactured or modular home must meet certain property requirements. These requirements may include a permanent foundation, meeting HUD safety and quality standards, and having a title that is registered as real estate rather than personal property. 

  • Occupancy: Most refinance loans require the homeowner to occupy the property as their primary residence. 

  • Loan Type: Homeowners must also consider the type of loan they currently have and the type of loan they wish to refinance into. For example, some loans, such as VA loans, may have specific refinance options and requirements that differ from conventional loans. 

Benefits of Refinancing a Manufactured/Modular Home 

Refinancing a manufactured or modular home can offer several benefits to homeowners, including: 

  • Lower Interest Rates: One of the primary reasons homeowners choose to refinance is to take advantage of lower interest rates. Lower interest rates can help homeowners save money on their monthly payments and potentially pay off their mortgage faster.  

  • Shorter Loan Terms: Another benefit of refinancing is the option to shorten the loan term. By switching from a 30-year mortgage to a 15-year mortgage, homeowners can build equity faster and potentially save thousands of dollars in interest payments over the life of the loan. 

  • Cash-Out Refinance: A cash-out refinance allows homeowners to tap into their home's equity and use the funds for other financial needs, such as home improvements or debt consolidation. This can be especially beneficial for manufactured or modular homeowners who may have limited options for obtaining home equity loans or lines of credit. 

  • Switching Loan Types: Refinancing can also provide homeowners with an opportunity to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage or vice versa. This can help homeowners better manage their monthly payments and potentially save money in the long run, depending on market conditions. 

  • Removing Private Mortgage Insurance (PMI): If a homeowner can achieve an LTV ratio of 80% or lower through refinancing, they may be able to remove the requirement for PMI. This can result in significant monthly savings. 

Popular Refinance Lenders 

There are numerous lenders that offer refinance options for manufactured and modular homes. Some popular refinance lenders include: 

  • Quicken Loans: Quicken Loans is one of the largest mortgage lenders in the United States and offers a variety of refinance options, including FHA, VA, and conventional loans. 

  • Wells Fargo: As one of the largest banks in the United States, Wells Fargo offers various refinance options for homeowners, including conventional, FHA, and VA loans. 

  • LendingTree: LendingTree is an online marketplace that connects borrowers with multiple lenders, allowing homeowners to compare refinance offers and find the best deal. 

  • 21st Mortgage Corporation: 21st Mortgage Corporation specializes in financing manufactured and modular homes, offering a variety of refinance options tailored to the unique needs of these homeowners.

Refinancing a manufactured or modular home can provide significant financial benefits to homeowners, including lower interest rates, shorter loan terms, and access to cash through a cash-out refinance. However, it is essential to understand the specific requirements and qualifications for refinancing, such as credit score, LTV ratio, and property requirements. By carefully considering their options and working with a reputable lender, homeowners can make an informed decision and potentially save money on their mortgage payments while building equity in their property.