financing for used mobile home

18 Replies

have an opportunity to buy good condition used mobile home with half an acre of property. wanted to set this up for a rental property with lease to own.have a young couple who wants to purchase but they're having trouble finding financing as many financing companies will not loan for used mobile home. does anybody have a lead on a company who does finance used mobile homes in Louisiana?


Have you considered financing it rather than doing lease to own?

Harold, yes but the owner has a older mortgage at 8.5%; making the deal with nothing. But if I could find a lender who does these types of properties for 5% the numbers could work. I am finding out these types of lenders are hard to find.

I moved from doing B class rentals in top high schools, to 100% double wides on their own land, but MUST be near or in a small town and near a major freeway for jobs.

I only do, never deviate from, 12 months rent to own, with optoin contract and option fee at $1500, just can't more from this type of buyer, then seller finance into a note after 12 months. I follow Dodd Frank, take home's deed into my personal name or wifes or SD-IRAs, never an entity (Dodd frank), use a licensed loan originator and qualify and full doc to 43% DTI or better.

Great business model.  Our cap rates run 25%++.  Never rent these things!!!!!!!  Keep the note, trouble free cash flow for 12-14yrs.  Why in the world would you rent a mobile home?


Have you ever seller financed the MH after splitting the land off and rented it to the buyer?

Hi Bob. No I haven't. My goal is trouble free cash flow.   Buyers will gladly do what's  in there best interests. 

Keeping the land and renting while they pay on a home mortgage at the same time may not seem like a good deal for their family. 

I do nicer double wides. Not the very old single wides where that's common. 

If you move up market so will your customer type.  I've conciously built nicer customers into everything I do from home choice at purchase time to fix up to marketing to how I sell. 

Renting mobiles can be a pretty miserable business that puts more in re fixups than it pays in rents... If you let it. 

@Curt Smith


Two questions about your model.

Are you using cash flow from earlier deals to recharge your capital pool to do the next deal? I ask because with you financing I am guessing the ability to refi your money back out for the next deal is not an option as it would be with a non war zone SFR after renovation. Seems like it would be a slow process to reach critical mass unless you are also pulling in a good primary salary and using a good chunk of that to infuse capital into the model.

Where are you finding these deals? Craigslist, foreclosures?


@Tony Gunter

@David Bailey

I have to appologize to David for diverting his thread and good question!!  

Let me hook in Aaron Kinney who wrote a book on mobile homes and mentioned how he got his financed.  The @ trick failed to bring in Aaron but here's his threads:


will finance mobile homes.  I doubt if they'll finance investor homes.  Call them.

I buy with cash out of our SD-IRA/pocket. Tony is right I don't (can't find) anyone to refi out my cash. Yes what I'm doing is because of a chunk of cash from our SD-IRAs that where created by rolling over employer 401Ks after we quit.

Here's a big tip

Zillow has a search filter "manufactured", set up a morning email for all manufactured in your area (for me its all of GA, no deal is close by, get used to it and start driving) and price under some thresold, which for me in GA is $40k

Some of the deals that come in are owner  occupied and they need to move.  When it's the owner as apposed to forclosure by a bank, the owner/seller can offer you seller financing.  $5k down and $400/mo.  This allows you to get into this mobile home ON LAND (no in parks) with only $5k.  Usually no fix up.  Now look for a rent to own, then seller finance for 3x mark up in price and 9% interest.  The sale would wrap the note you have with the seller.

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Is the home on foundation? 

I would talk to your smaller banks - The last older (1978) mobile I sold in a park was able to be financed through a small local bank. They do a similar loan to a car loan- shorter terms. 

Three companies that I know finance homes are 21st Mortgage in Knoxville, TN; MH Acceptance in Elkhart IN, and Vanderbilt.  All three finance nationwide. Of the three MH Acceptance seems to be easier to deal with, and Vanderbilt the most aggressive in the collections department.

Mobile homes in good condition with land attached can qualify FHA. Not sure of the full guidelines.

FHA Refinance and Loan Fact #28

Mobile Home Loans

You may qualify for FHA-insured financing for either mobile homes or factory built houses. FHA loans for mobile homes located in mobile home parks are separate from the FHA loans for people who own the land where the mobile home would be located. FHA loan guidelines also permit a retailer to make modifications to a manufactured or mobile home, as long as alterations comply with HUD code. According to FHA loan guidelines, the definition of "alteration" is the replacement, modification, addition or removal of any equipment or installation before the sale to the homebuyer.

While the FHA has these programs, most FHA lenders either choose not to participate in them or have additional qualifying overlays which are more stringent than the FHA. It is not mandatory for an FHA lender to offer certain products and you should contact each lender to see if they offer the product you need.

This link has Vanderbilt foreclosures and repossessions. I bought one late model deal in a park for $7500 that needed minor repair, that was at 1/2 there list price.

@Michael Meeks

Tnx alot.  You just low balled an offer at 1/2 their website listed amount?  The properties I would typically buy, 1/2 is still on the high side.  

Then you bought with cash of course.

Yes I bought it for 7500 cash. I put about $3500 in repairs including a room. I sold it for 38,000 owner financing with $5000 down. 

@Michael Meeks

You just clicked the make an offer link on the VFM property you where interested in, put in 1/2 or less of the ask and they got back to you?

Tnx curt

No, I actually talked direct to the broker and he wrote up everything from my verbal offer.

Hi, David

Yes, I know a private money lender that loan money for used mobile homes. The couple  credit should be between 630 and 720. 

Sophia Wilson

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