When you own a manufactured home, it’s natural to wonder if you can use your home’s equity to your advantage, especially if you’re planning a renovation, consolidating debt, or need extra financial flexibility. One of the most common ways to access that equity is through a second mortgage. But can you actually get a second mortgage on a manufactured home? The answer is: it depends on a few key factors related to your home’s classification, value, and existing financing.
Let’s break it down.
What Is a Second Mortgage?
A second mortgage is a loan taken out against the equity you’ve built in your home, in addition to your primary mortgage. Essentially, it’s another lien on your property,meaning if you default, the lender holding your first mortgage gets paid before the second.
Second mortgages come in two main forms:
- Home Equity Loan: A lump sum loan with a fixed interest rate.
- Home Equity Line of Credit (HELOC): A revolving line of credit you can draw from as needed.
These options can give homeowners financial breathing room, but qualifying for one depends on how your manufactured home is financed and titled.
When a Second Mortgage Is Possible for Manufactured Homes
If your manufactured home is permanently attached to land that you own and titled as real property, you may be eligible for a second mortgage, just like a traditional homeowner.
In this case, your manufactured housing is treated similarly to a site-built home in the eyes of lenders and appraisers. This setup makes it easier to access traditional loan products, including second mortgages, home equity loans, and HELOCs.
To qualify, you’ll generally need to meet requirements such as:
- Having sufficient equity (typically at least 20%) in your home.
- Maintaining good credit and stable income.
- Working with a lender that handles manufactured home loans specifically.
When a Second Mortgage Isn’t an Option
If your manufactured home is not permanently affixed to land, for example, if it’s located in a manufactured home park or classified as personal property (chattel), getting a traditional second mortgage is unlikely.
Chattel loans, which are common for homes on leased land, are structured differently than mortgages. Because the home is considered personal property rather than real estate, lenders can’t secure a second lien in the same way they would for a site-built home.
That said, there may still be financing alternatives, such as:
- Personal loans or home improvement loans.
- Refinancing your existing manufactured home loan to access equity.
- Specialized lenders who work with manufactured housing and offer flexible equity-based products.
How to Explore Your Options
If you’re considering tapping into your home’s value, start by determining how your manufactured home is titled, real property or personal property. From there, reach out to lenders who specialize in manufactured home loans to discuss your eligibility.
Be sure to:
- Review your home’s current market value and remaining loan balance.
- Check your credit score and debt-to-income ratio.
- Compare lenders familiar with manufactured housing for the best terms.
This groundwork will help you understand what type of financing fits your unique situation.
Final Thoughts
Getting a second mortgage on a manufactured home is absolutely possible, but only if your home qualifies as real property and you’ve built enough equity. For those with homes on leased land or financed through a chattel loan, there are still ways to leverage your home’s value through refinancing or alternative loan options.
If you’re ready to explore your options or learn more about manufactured home loans, visit ManufacturedHomeLoans.com. As a trusted marketplace and information hub for all things related to manufactured housing financing, we’re here to help you find the path that best fits your financial goals.
