When shopping for an affordable housing option, some buyers wonder if they can finance a manufactured home the same way they might finance an RV. After all, both can be mobile, both offer a place to live, and both often cost less than a traditional house. While the two share similarities, the financing process for manufactured homes and RVs is usually quite different. Understanding those differences can help you decide the best way to secure funding for your new home.
Manufactured Homes vs. RVs: Key Differences
The main reason financing options differ is how each type of property is classified.
- Manufactured Homes are built to meet the U.S. Department of Housing and Urban Development (HUD) Code and are designed to be permanent residences. They can be placed on owned or leased land and may be titled as real property or personal property, depending on the setup.
- RVs (Recreational Vehicles) are designed for travel and temporary stays. They’re built to the standards of the RV Industry Association (RVIA) and are almost always titled as vehicles, not real estate.
Because of these differences, lenders treat manufactured homes more like traditional housing, while RVs are financed like automobiles.
Why RV Financing Usually Doesn’t Apply to Manufactured Homes
RV loans tend to have shorter terms (often 5–15 years), higher interest rates than many home loans, and smaller maximum loan amounts. They’re designed for recreational use, not full-time housing.
Manufactured home loans, on the other hand, can come in several forms:
- Chattel Loans: For homes not permanently attached to land, similar to personal property financing.
- FHA, VA, or USDA Loans: Government-backed options that can offer competitive rates and lower down payments, if the home meets specific requirements.
- Conventional Mortgages: For manufactured homes permanently attached to owned land and titled as real property.
While it might sound appealing to try for an RV loan due to potentially lower upfront requirements, most lenders won’t allow this for a manufactured home because it’s not considered a vehicle.
The One Exception: Park Model RVs
There’s one area where the lines blur: park model RVs. These are small, often manufactured in a similar style to tiny homes, and built to RVIA standards. Because they’re officially classified as RVs, they can be financed with an RV loan. However, they don’t meet HUD’s manufactured housing standards and therefore aren’t considered manufactured homes.
Choosing the Right Financing Path
If your goal is to purchase a manufactured home for full-time living, your best option is to explore manufactured home loans specifically. These loans are designed to work with the unique qualities of manufactured housing, offering more appropriate terms, loan amounts, and protections than RV financing.
Before you apply, it’s a good idea to:
- Decide on land ownership: Will you place the home on your own land, or in a community?
- Check the home’s HUD compliance: This affects loan eligibility.
- Compare loan types: Chattel loans, FHA loans, and conventional mortgages each have pros and cons.
Final Thoughts
While manufactured homes and RVs can sometimes look similar, the financing process is not the same. RV loans are designed for vehicles meant for travel and recreation, while manufactured home loans are tailored for permanent housing. If you’re looking to buy a manufactured home, focus on lenders who specialize in manufactured housing financing.
At ManufacturedHomeLoans.com, we connect you with lenders who understand the unique needs of manufactured home buyers and can guide you toward the loan that fits your budget and lifestyle. Whether you’re purchasing your first home or upgrading to something new, the right financing can make all the difference.
Start exploring your manufactured home loan options today, your new home is closer than you think.
