Can I get a conventional loan on a manufactured home?
Yes, if the home and the land under it are legally real property and the home meets Fannie Mae's manufactured housing rules. It must be built to the HUD code that started in June 1976, sit on a permanent foundation, and be a home you live in or a multi-width second home. Fannie Mae will not buy a manufactured home loan on a rental. MH Advantage homes built to site-built style standards get more flexible terms.
Educational answer from Mortgage Expert. Mortgage Expert's licensed loan originator is Shahram Sondi, Florida mortgage broker, Certified Mortgage Advisor™, NMLS 186790. Sources checked .
How it works
What the home must be
Fannie Mae defines a manufactured home as one built on a permanent chassis, attached to a permanent foundation, with a HUD Data Plate or HUD Certification Labels. It must meet the federal construction standards that took effect June 15, 1976.
It must be at least 12 feet wide with at least 400 square feet of finished living area. The hitch, wheels and axles must be removed. The home cannot have been installed at another site before, and it must be one unit with no accessory dwelling unit.
Land, title and use
The loan must cover both the home and your interest in the land, and both must be real property under state law. A home on leased land qualifies only inside a Fannie Mae-approved condo or PUD project. Homes in co-ops are not eligible.
In Florida, section 319.261 of the state statutes lets the owner of a mobile home fixed to land they own retire the vehicle-style title, by recording papers with the county clerk and applying to the state. After that, the home is sold by deed together with the land.
Allowed uses: a home you live in (single- or multi-width) or a second home (multi-width only). Investment properties are not eligible.
Down payment rules and MH Advantage
Fannie Mae requires at least 5% of the down payment to come from your own funds, unless the loan-to-value ratio (LTV) is 80% or less, or you use eligible gift, grant or employer funds on a home you will live in. Equity in land you already own counts as your own funds.
MH Advantage homes have features closer to site-built homes, like a covered porch, a masonry or concrete perimeter foundation, and paved driveways and sidewalks. Fannie Mae gives them higher LTV limits, standard mortgage insurance and lower price adjustments than other manufactured homes. An MH Advantage loan can go above 95% LTV, up to 97%, with at least 3% from your own funds. Other manufactured homes cannot go above 95%, and the Eligibility Matrix may set lower limits.
Using land you own toward the down payment
Illustrative example. This is not a real borrower, offer or quote. The prices and values are assumptions.
A buyer has owned a lot for three years with no loan on it. It appraises at $60,000. The buyer is buying a new multi-width manufactured home for $180,000, to be set on a permanent foundation on the lot as the buyer's main home. The as-completed appraisal of home and land is $250,000. The loan amount is $180,000.
| Item | Amount |
|---|---|
| Home price plus land value | $240,000 |
| Value used (lower of the two) | $240,000 |
| Loan-to-value ratio | 75% |
| Land equity counted as own funds | $60,000 |
The math, step by step
- Home price plus land: $180,000 + $60,000 = $240,000. That is lower than the $250,000 appraisal, so $240,000 is the value used.
- LTV: $180,000 ÷ $240,000 = 75%.
- The lot is free and clear, so the full $60,000 counts as the buyer's own funds. At 75% LTV, the 5% own-funds rule does not apply anyway.
Takeaway: Land you already own can cover the down payment on a manufactured home. The lender uses the lower of price plus land value or the appraisal.
Easy things to get wrong
- A home that was moved from another site is not eligible, even if it is in good shape.
- Personal property sold with the home, like furniture, must come off the price and cannot be financed.
- If you bought the land in the last 12 months, the lender values it at the lower of what you paid or its appraised value when counting your land equity.
- Modular and panelized homes are not manufactured homes under Fannie Mae's rules. They are treated like site-built homes.
What to do next
Find the HUD Data Plate or labels, confirm whether the title has been retired, and check that the foundation is permanent before you apply.
Buying a manufactured home or placing one on your land? Shahram Sondi can check the title, foundation and down payment rules for your file.
Check the sources
- Fannie Mae Selling Guide B5-2-02: manufactured housing loan eligibility
- Fannie Mae Selling Guide B5-2-03: manufactured housing underwriting requirements
- Fannie Mae Selling Guide B2-3-02: factory-built housing and MH Advantage
- Fannie Mae Eligibility Matrix (dated August 5, 2026)
- Florida Statutes s. 319.261: retiring title to a mobile home
Sources checked . Program guidance and lender requirements can change.
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Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.
