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FHA Mortgage Lenders For Modular Homes– The Best Mortgage Option!

Modular homes Mortgage Lenders- Most banks and mortgage companies, including FHA mortgage lenders finance modular homes. When you buy a modular home, your home’s value will usually increase over time – making modular homes just as smart of a mortgage  option as traditional, site-built homes.

Highlights of using the FHA mortgage to purchase a modular home: 


  • Down payment only 3.5% of the purchase price.
  • Gifts from family or FHA Grants for down payment assistance and closing costs OK!
  • Sellers can credit the buyer’s up to 6% of sales price towards buyers costs and pre-paid.
  • No reserves or future payments in account required.
  • FHA regulated closing costs.


  • 12 months after a chapter 13 Bankruptcy FHA mortgage Lender approvals!
  • 24 months after a chapter 7 Bankruptcy FHA mortgage Lender approvals!
  • 3 years after a Foreclosure FHA mortgage Lender approvals!
  • No Credit Score FHA mortgage Lender approvals!
  • 580 required for 96.5% financing or 3.5% down payment FHA mortgage Lender approvals.
  • 500 required for 90% financing or 10% down payment FHA mortgage Lender approvals.
  • Bad Credit with minimum 500 FICO credit score with 10% Down Payment FHA. For FHA mortgage applicants with credit scores between 500 and 579 must make down payments of at least 10% down!
  • Read more about FHA Qualifying Qualification Summary – Manual Underwrite – Collections-Judgement’s – Bankruptcy or Foreclosure – Compensating Factors –


FHA MORTGAGE LENDERS TREAT MODULAR HOMES DIFFERENT- To understand why FHA mortgage lenders, treat modular homes different you must ask yourself, what Is a Modular Home? A modular home is constructed from two or more factory-made boxes that are fitted together on site to create a safe, energy-efficient, and cost-effective modular home. These boxes are called “modules,” hence the name modular home. It is a type of prefabricated housing that has become increasingly popular in recent years since new technologies have allowed for this previously restrictive way of building to become 100% completely customizeable.

MODULAR VS. MANUFACTURED- While the terms “modular home” and “manufactured home” refer to two very different things, they are sometimes used interchangeably. Most of this confusion comes from the fact that modular homes are, in fact, manufactured. Also, traditional “site-built” homes are not necessarily better than modular homes, despite the stigma associated with their assembly-line origin. There have been cases where Realtors and builders of manufactured homes have misrepresented manufactured homes as modular homes, and buyers were not informed enough to know the difference. Everyone (especially inspectors, who make their living examining residences) should understand the distinguishing features of these two different types of houses.


  • modular homes take eight to 16 weeks to build. Differing from a site-built home, the foundation can be dug at the same time that the house is being constructed.
  • must conform to the same local, state and regional building codes as homes built on-site;
  • are treated the same by banks as homes built on-site. They are easily refinanced, for example;
  • follow the same market trends as site-built houses;
  • must be structurally approved by inspectors;
  • can be of any size, although the block sections from which they are assembled are uniformly sized;
  • are often more basic than homes built on-site, but they tend to be sturdier;
  • are highly customizeable. Design is usually decided by the buyer before construction has begun; and

MANUFACTURED- The term “manufactured home” is the most recent label for what were once called “mobile homes” or “trailers.” They are relatively inexpensive, small, and are held to less stringent standards than modular and site-built homes. They are available in three sizes that escalate as follows: “single-wide,” “double-wide” and “triple-wide.” In addition, manufactured homes:

  • do not have a permanent or conventional foundation;
  • conform only to Housing and Urban Development (HUD) code. Some homes contain a red tag that confirms that the unit was manufactured in compliance with this code;
  • are inspected, but do not have to be structurally approved by an inspector;
  • are manufactured in sections at factories;
  • are never more than one story;
  • tend to lose value over time because they are difficult to expand or improve;
  • are transported to the site on their own wheels;
  • are transported on steel chassis that are never removed;
  • are often placed on property owned by others, such as public land that is leased by the homeowner;
  • are treated as a separate lending category from modular and on-site built homes; and
  • are rarely custom-designed. The buyer can choose from homes that have already been built and receive it within days.

REVIEW THE FRAMEWORK OF A MODULAR HOME: The modular housing industry is currently growing faster than any other type of new-home construction. This is because in general modular homes cost less, can be built faster, are more solid, and are even more environmentally friendly than standard site-built homes.

They are built to exceed the same building codes as traditional site-built homes and are subject to many more stages of inspection along the way to ensure the highest possible construction quality.

GET A MODULAR HOME FOR LESS: Alot has been said about how much less expensive modular homes are than standard site-built homes. Some modular home builders  will tell you that they can save you anywhere from 40 to 60% by building modular. These savings can only be expected in very few circumstances. As a modular home buyer you can generally expect to spend anywhere from 10 to 20% less on your home if you choose to build modular. These savings are found mostly in three major areas: bulk purchasing, labor costs, and building materials.

MODULAR HOMES NOT SET UP THE SAME:Once a house is built, there’s virtually no visible difference between a modular home and a site-built home. Learn more about what makes modular homes safer, more affordable, and faster to construct or search our database of hundreds of standard modular home plans.


MODULAR HOME CONSTRUCTION PROCESS:The general impression on modular homes used to be that they were created with inferior workmanship, but since the industry has evolved over the past few decades, modular homes have become known increasingly not only for their affordability, but also for their superior construction quality. This is due to a few major factors: access to superior quality building materials, construction in a controlled environment, factory-quality inspections, and the need for each module to be so structurally sound that it can survive the trip over highways.

MODULAR HOMES VS SITE BUILT HOMES- If you take a side-by-side comparison of a timeline for a site-built home vs. a timeline for a modular home. You would notice that the first two stages of construction are the same. Designing and engineering a modular home would be significantly faster if you decide to build a standard modular floor plan that your builder and manufacturer are already familiar with or have built in the past. But, in the spirit of fairness, we assume that you’re building a completely custom modular home, so designing and engineering will take the same amount of time for modular as for site-built.


US Mortgage Lenders has an extensive lender network that allows us to provide unique and mortgage solutions. Contact US for the most update information on terms and conditions. All Information on this site Is for example, hypothetical purposes and should NOT be relied on for decision making.
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