Purchasing a mobile home is one method to enter the housing market in an affordable way. Mobile homes are far less expensive than stand-alone single-family homes, and because they are manufactured to be moved, mobile homes are often treated as personal property instead of real estate.
This designation keeps property taxes relatively low and saves homeowners on insurance over the long term. While the fluidity of a mobile home is appealing to some, it creates a challenge in mobile home financing, even for the most qualified borrowers.
Mobile Homes Don’t Build Equity Like Stick-Builts Do 🏡
Unlike single-family stick-built residences, mobile homes do not build up as much equity over time because they are not secured to land in a permanent way. Because they are made to be mobile, these homes often carry higher interest rate loans than permanent structures. The bank views them as personal property and therefore attaches a greater level of risk to the loan.
The higher interest rate offsets some of that risk for the lender but it creates a situation when equity is difficult to build over time for the homeowner. Similarly, mobile homes depreciate in value the same way personal property does. Over time, the structure may be worth less than the amount left on the mortgage, making it nearly impossible to build equity.
However, if you’re thinking about getting a home equity loan on your mobile home to help pay for a major expense, consolidate consumer debt, or fund a project around the house, you have some sound borrowing options.
Finding the Right Mobile Home Equity Lender 🙋
Heading to your local bank or credit union probably won’t yield the results you are hoping for with a home equity loan or home equity line of credit (HELOC) on a mobile home, but worth a try. Banks and credit unions, as conventional lenders, are more prone to decline home equity loan and line of credit applications for mobile homes because of the risk of depreciation.
However, there are a few select lenders, nationwide, that have the ability to see through the perceived risk and provide financing to mobile homeowners. In most cases, the following requirements must be met before a mobile home equity loan or line of credit is approved:
- There must be equity in the home, meaning the first mortgage is no more than 80-90% of the home’s market value.
- The home must be double-wide or larger (in some cases, at least 600 square feet).
- The homeowner must own the land on which the mobile home sits.
- The mobile home must be considered real property, not personal property.
- The mobile home must meet the minimum requirements of permanency dictated by each state.
If these requirements are met, most lenders specializing in mobile home equity loans or lines of credit are able to offer affordable lending to well-qualified borrowers with good credit scores.
Mobile Home Equity Lending Experts Do Exist 👔
In your search for equity financing for your manufactured or mobile home, start with an industry leader that is an expert in mobile home equity funding:
- Credit Human ($25,000 maximum cash out; home must be multi-section, maximum age 20 years old; loan-to-value (LTV) of 65%).
- Cascade Loans (cash-out home equity loans; triple, double, and single-wide programs; must speak to a licensed professional for more eligibility information).
- White River Credit Union (80% LTV; must be set on gravel or cement pad, have wheels and hitch removed, skirting installed between base and pad, and built after 1976).
Manufactured home mortgage lenders like these understand the unique situation of mobile homeowners and can provide guidance on what type of home equity financing is available based on the home’s structure, its location, and your credit history.
Two Alternative Borrowing Options 💲
1. Obtain a Personal Loan 💵
If you’re not able to secure home equity financing on your mobile home or just need cash fast, you may want to consider a personal loan. The approval process is simpler and you can quickly apply online to see if you qualify to receive a personal loan up to $50,000 or more with a low-interest rate, to use however you want.
Top Personal Loans ✅
- Upgrade ( offers personal loans from $1,000 to $50,000 that can be used for home improvement, debt consolidation, a major purchase, or something else).
- Upstart (accepts a wide range of credit scores and uses more than your score to help get you approved for $5K – $50K with its network of lenders. Checking your rate online won’t affect your credit).
- Axos Bank (requires a great credit score above 700, offers loan amounts of $5K to $50K, reputable lender, FDIC insured bank).
2. Refinance Your Current Mobile Home Mortgage Loan 💰
Another viable option would be to refinance your current manufactured home mortgage loan and take cash out. Oftentimes you can lower your interest rate and your monthly mortgage payment too!
Newer tax laws don’t allow you to write off the interest paid on a home equity loan or HELOC unless the money is specifically used toward the home. However, you can still deduct all the interest paid if you refinance your home loan.
Top Mobile Home Refi Specialists ✅
In addition to the aforementioned manufactured and mobile home mortgage lenders, there are a few mobile home refinance specialists:
- 21st Mortgage Corporation (consolidation / cash-out options require a minimum credit score of 600).
- Triad Financial Services (need to call to speak with a manufactured home refinancing loan officer at 1-800-522-2013 to see if yours qualifies).
- Manufactured Nationwide (85% FHA, 100% VA manufactured cash-out refinance loans; 100% FHA and VA streamline refinance loans; homes cannot be in a park or on leased land).
These companies offer several types of mobile home refinance loans that may allow you to borrow additional money.
Then there are comparison shopping websites that allow you to get a free online quote from multiple lenders at the same time to see what you might qualify for. Select the best option from the available offers to move forward.
Final Thoughts on Mobile Home Equity Loans 🏠
Obtaining a home equity loan on a mobile home can be an uphill battle for many people. No matter what, borrowers should have a decent credit history, verifiable income, and a healthy credit score in order to qualify for the lowest APR mobile home equity loan, home equity line of credit, home refinance, or personal loan.
Hello. I have five acres and a double wide manufactured home on foundation meeting HUD standards. I am hopeful to obtain a mortgage / cash out for a portion of the total value. It is totally paid for. and not my primary residence. What options do I have?
Hi Heather, have you tried reaching out to any of the lenders mentioned herein about a home equity loan, HELOC, or refinancing?
My husband and I would like to access the equity in our property. We live on just over 3 acres but our home is a manufactured single wide and no mortgage, we paid cash for our property from inheritance we got from his father. We also don’t have the best credit but it isn’t horrible. I am finding it hard to find any lenders who will even consider a HELOC Line of Credit or Loan. Any advise?
Hi Gail, It is possible to get a cash-out refinance loan on a manufactured home on leased land but they are hard to find. Have you tried contacting 21st Mortgage mentioned above? According to its website, the company does offer that type of loan.
Is there a lender for a person who wants a cash-out loan for a manufactured home but doesn’t own the land where the home is? Thank you.
Hi Ross, yes you can refinance a home that has been paid off. Have you contacted any of the lenders in the article to explore your options with them?
I own a 2005 double wide manufactured home, no mortgage, it is in a park, what are my best options to barrow against its equity? Can you refinance a home that’s paid off? I qualify for all the requirements, except for owning the property.
hmm. also unable to get a HELOC on Nevada mobile home converted to real property on our land, with excellent credit and tons of equity .Our local bank just stopped offering them, though we have had one for years. Our current one converts to a mortgage in a few years. I think this is tied to the insurance industry. They are not paying people enough when their homes are destroyed to pay off their debt. We are in a wildfire area. Many people thought they had good insurance but it was not adequate to rebuild at the skyrocketing costs and they are now just stuck. Insurance companies fight you tooth and nail, you now may need to hire a lawyer to get a decent settlement. It is worse for mobiles than houses.. I looked at the websites you mentioned, only one offers a very tiny HELOC. I want to develop another property, don’t want to start paying huge interest payments while doing so…Looking at other options.
Hi Steve, that seems odd to me when the land is worth that much and you want so little of it. Have you tried just getting an equity loan or line-of-credit on the land only? Also, what is the reasoning, if any, you are receiving about the denial?
Hi, I have a 1994 Manufactured home on 5 acres in a suburb of San Francisco. I own the home and land. I don’t owe any money on it. It is currently appraised at 7.2 million. I want to pull out 37k to buy a Harley motorcycle but I keep getting denied. I am not interested in selling.
I’m sorry to hear that Dave. Who have you contacted? Do you have good credit and a good debt to income ratio? The mortgage market, in general, is a little chaotic at the moment. Probably making it even harder for mobile home loans.
I have manufacture home double wide on permeant foundation private property appraise $ 350000 in the downtown
built 2008.paid off. not able to get any loan.
Hi James, have you tried calling any of the numbers in the article?
Hi Debra, Did you try calling any of lenders listed in the article?
I have a double wide modular home but don’t own the land is there any place that will give an equity loan?
I have a Cavco Manufactured home that is affixed to my acreage. The appraised it at $180,000 4 years ago. since then we have upgraded the flooring to hardwood. and upgraded all the appliances. Since this is real property, why is it so difficult to get a heloc. My credit score is great, so I am really confused.
Hi Maricelli, I’m sorry that I missed your comment. Did you ever have any luck getting a home equity loan on you mobile home?
I own a summer home it’s a single mobile on my own land in a condominium campground. The value is approx.135k and it is paid off. I would like to obtain an equity loan for $60,000.00
Hi Shawn, are you sure it wasn’t just for your particular situation? Several list on their website that they still do and I’ve been told the others do as well. I have not heard anything negative about them from anyone else. Could they not refer you to someone who might be able to assist you further? They are manufactured home lending specialists. Also, have you considered refinancing? Rates are really low right now, so you might be able to reduce your rate and still use the equity in your home for cash similar to what you are looking to do with an equity loan, but at a much lower rate paid over a longer period of time which would keep your additional payments lower as well. Just something to consider. Might not work for your situation, but with these low rates it can be much better option financially.
I have called all 3 of the company’s you listed and none of them do equity loans for manufactured homes….
Looking to get a home equity on my single wide its set on 2ac everything paid for
Hi William, a co-signer could definitely help.
Hi Wes… I have not spoken to any lenders as of yet but I was told via text message that my Low Credit score would keep me from getting financing. Would a Co Signer help me in any way.?
Thank You
Hi William, there are so many variables at play there is no way say what you would qualify for without looking at your specific situation: actual credit score, mobile home, income, debt, etc.
Have you spoken to any lenders yet?
Hi, I Own a Triple wide Mobile in a Mobile Home park . My coach has new everything including copper piping throughout. It was Manufactured in 1975. Est Value is $100,00. I am searching for a HELOC, Personal or Title Loan for $10,000 to consolidate Bills. My Credit Rating is poor . Do I have options…
We do not provide loans directly. Have you tried contacting the companies we’ve mentioned in the article?
notify me to let me know if you can if u can help with a mobile home equity loan or line of credit.
Hey Mart, did you try contacting any of the institutions mentioned in this blog post?
I’m looking for a equity loan on my mobile home.Is there a company out there that does this?
i owe my moble and i would like to borrow against it to fix up i dont owe anything i do pqy taxes
I have a 24 x 60 doublewide mobile home in the Rancho Grande Mobile Home Community in Rohnert Park California. My mobile home is PAID OFF!! I own it outright. It’s worth approximately $150,000. I am looking for a $10K equity loan. Can someone help:?
Hi Barbara, have you tried contacting 21st Mortgage, Credit Human, your bank or credit union?
I am looking for a home improvement loan/equity loan on my double wide mobile home. It is paid off and worth just over $100K. But I lease the land. What are my options?
Looking to take out money on my home and land it’s paid off
Hi Rod,
Have you tried 21st Mortgage or Credit Human? You might also contact your local bank or credit union and ask for referrals if they cannot help you.
We own a dbl wide manufactured home on approx. 2.5 acres. the hone is not on a permanent foundation. Is there any lender in CA that will do an equity loan? The loan on the home and land is paid off.
I own a summer home it’s a mobile on my own land in a condominium campground assesse value 120k it is paid off and I would like to finance my debt I need 40k my credit score is 620 no late payments just high debt
That’s probably going to be pretty tough Ann. The best thing to do is contact a couple of lenders.
Hi
I have a 2013 skyline single family mobile home. I don’t own the land but own the mobile home outright. I paid cash for it. Is it possible for me to get an equity loan
Hi Bob, that seems like something a bank should be able to work with.
I own the property and a double wide (1440 sq ft) on a golf course, with no mortgage payments, in Thousand Palms, Ca. and was wondering if there might be an opportunity to borrow against the equity?
Hi Susan, what sort of strange things?
Do you have information on new mobile home in co-op park we heard they have strange financing rules. Thanks
Hi Kevin, have you tried contacting any of the lenders mentioned in this article?
Hi I have double wide own with the land in title is sfr paid off looking for line of credit my rico is 620 or 628 i want to paid off all my credit cards…i want a line of credit. .so if you guys know let me know my income is okay ty
Hi Sandra, did you try calling the companies listed in the article? We don’t make loans here at APRfinder. Just help guide you in the right direction.
Thank you
Looking for a mobile home/land loan. I have a 2011 double wide with a balance of 5,600. 00 only. Sits on 1 acre lot. I also have a 1983 single side that sits on a 1/2 acre lot I own free and clear. I found a 2acre property with 3 mobile homes on it wanting to replace one home with a new one and the other two have long term renters in it. I plan to live there and rent my double wide I’m in now out. Can you help me. I have no money down just my properties and a fico of 653. Never late on payments I just have a few credit cards that I used and it lowered my score. ALOT. From 740 last year. 16 years at my job as a waitress. More less self employed. Please contact me thank you!!
Hi Katy, did you try calling 21st Mortgage or Mountainside Financial?
Looking for a lender who will do a HELOC on a double-wide
Hi Beverly, the best thing to do is contact one of the companies mentioned within the article. They are better suited to match you with an equity loan and advise you going forward.
My husband and I have paid off our double wide plus we have 1 acre of property it sits on. The problem is we don’t have perfect credit. Anything you can do?
We are asking for a home equity loan. Credit scores are 620 and 643
Hi Mel, Have you tried contacting any of the companies mention in the article?
I am looking for a home equity loan on a single wide mobile on 2.5 acre lot in which we own free and clear and would appreciate any help you could provide to us. Thank-You