When it comes to investing in manufactured homes, many buyers wonder if they can finance the purchase through a business or Limited Liability Company (LLC). It’s a smart question, especially for those looking to use manufactured housing as rental properties, employee housing, or business assets. While it’s possible in some cases, the answer depends on how the home is classified and the type of loan you’re seeking.
Let’s break down how manufactured home loans work when a business or LLC is involved.
1. Personal vs. Business Ownership in Manufactured Housing
Manufactured homes are typically financed as personal residences, meaning the loan is issued to an individual borrower rather than a business entity. This is because most manufactured home loans (such as FHA, VA, or USDA loans) are designed for personal, owner-occupied homes. These programs often require the borrower to live in the home as their primary residence, which automatically excludes businesses and LLCs from qualifying.
However, if your goal is to purchase manufactured housing for investment or commercial purposes, you may still have options through specialized lenders or commercial loan programs.
2. When a Business or LLC Can Finance a Manufactured Home
While traditional mortgage lenders won’t issue loans to an LLC, commercial lenders and portfolio lenders sometimes will. Here are a few scenarios where a business or LLC might qualify for financing:
- Investment Properties: If you plan to buy a manufactured home to rent out or use as part of a business operation, some lenders offer commercial real estate loans secured by the home and land.
- Land Ownership: When your business owns the land where the manufactured home will be placed, and the home will be permanently affixed, it may be possible to finance it as part of a commercial property.
- Business Use Cases: Manufactured homes used as on-site offices, sales centers, or employee housing can often be financed through a business loan rather than a traditional mortgage.
These loans generally require a strong business credit profile, a detailed business plan, and often a higher down payment than a personal loan.
3. Why Many Lenders Prefer Individual Borrowers
Most lenders consider manufactured homes personal property (especially if not permanently attached to land), which makes them riskier to finance under business entities. Loans in a personal name offer lenders more straightforward legal protections and allow for more flexible loan programs.
Additionally, business entities don’t qualify for government-backed programs like FHA or VA loans, which are popular and affordable options for manufactured home buyers. This means financing through a business often comes with higher interest rates and shorter repayment terms.
4. Alternatives to Business Financing
If you’re a business owner who prefers to keep your investments separate from personal assets, there are still ways to structure your purchase:
- Buy the home personally, then lease it to your LLC for business use.
- Use your business’s credit to secure a personal loan or line of credit to fund the purchase.
- Explore portfolio lenders who specialize in manufactured housing and work directly with investors or businesses.
These approaches can give you flexibility while still providing the liability protection and structure you want for your business.
Business Financing Is Possible
While most manufactured home loans are designed for individuals, it is possible for a business or LLC to finance a manufactured home through commercial lending options. The key is understanding how your home will be classified, what you’ll use it for, and which lenders are equipped to handle business borrowers.
At ManufacturedHomeLoans.com, we help connect buyers, investors, and business owners with the best financing options for manufactured housing, whether it’s for a family home or a growing business.
