Mobile home financing differs from traditional home financing in several key ways: loans for mobile homes are typically much more expensive than loans for traditional homes and often carry a limited lifespan, and mobile homes may also qualify for mortgages but are usually financed through government subsidies instead of private lenders. Mobile home financing also varies depending on the type of home involved, according to Realtor.com. Homes come in the two categories of single-wide and double-wide; single-wide homes are typically subsidized by mobile home companies, while double-wide homes may qualify for conventional loans from private lenders or government-assisted funding.
Either type of mobile home may be subject to a chattel mortgage, which is a loan with up to a 20-year lifespan, according to NYTimes.com. These loans are generally expensive and have shorter lifetimes than most home loans. However, mobile homes typically cost less than traditional homes and may have lower down payments. In some cases, down payments for mobile homes are less than five percent, especially with government programs. However, interest rates on these loans are higher than those on standard homes, as insurers consider mobile homes riskier investments.
In addition to the home itself, mobile home owners have a financial responsibility for the land on which they site homes. Homeowners may have the option of leasing or buying a lot for the manufactured home. Manufactured homes may be eligible for a mortgage payment if homeowners choose to buy the land.