When buying a manufactured home, one of the first questions that comes to mind is, “How will I pay for it?” Manufactured housing has become a popular choice for families, retirees, and first-time buyers thanks to its affordability and flexibility. But when it comes to manufactured home loans, the financing process can feel a little overwhelming. That’s where the idea of in-house financing often comes up. Many buyers wonder: can the builder or dealer of a manufactured home offer this type of financing directly?
What is In-House Financing?
In-house financing means the builder, dealer, or retailer not only sells the manufactured home but also provides the loan to help you purchase it. Instead of working with a bank, credit union, or specialized lender, you would make your payments directly to the builder or the business that sold you the home.
This type of arrangement can feel appealing because it simplifies the process. After all, it’s easier to shop for a home and handle the financing in one place. Some builders advertise it as a way to make buying a manufactured home quicker and more convenient.
Do Builders Actually Offer It?
While some manufactured home dealers and builders do provide in-house financing, it’s not the norm. In most cases, builders partner with outside lenders who specialize in manufactured home loans. These lenders understand the unique aspects of manufactured housing and can offer options such as:
- Chattel loans (for homes not placed on permanent foundations)
- FHA or VA loans (for qualified buyers)
- Conventional loans (when the home is permanently affixed to land)
Builders that do provide in-house financing usually act more like a “buy here, pay here” setup. They may finance the home themselves, but often the loan terms come with higher interest rates or shorter repayment periods compared to traditional lenders.
Pros and Cons of In-House Financing
Like any financial decision, there are advantages and drawbacks to consider.
Pros:
- Streamlined process: home buying and financing in one place.
- May be more flexible for buyers with lower credit scores.
- Faster approval process compared to some traditional loans.
Cons:
- Higher interest rates compared to standard manufactured home loans.
- Fewer protections and options than government-backed programs.
- Limited ability to shop around for better terms.
What Should You Do Instead?
Even if your builder offers in-house financing, it’s always a good idea to compare your options. Shopping around with multiple lenders gives you the best chance of finding a loan that fits your budget and long-term plans. Manufactured housing has unique loan programs that can make ownership more affordable and stable than some in-house options.
A good strategy is to let your builder show you their in-house financing terms but also get pre-approved with a lender who specializes in manufactured home loans. That way, you can make an informed decision and avoid locking yourself into a loan that might cost more in the long run.
Final Thoughts
Builders and dealers can sometimes offer in-house financing for manufactured homes, but it’s not the most common path, and it’s not always the most affordable. Understanding how manufactured home loans work and exploring your choices ensures you get the best deal for your new home.
At ManufacturedHomeLoans.com, we make it easier to compare lenders, loan types, and financing options all in one place. If you’re considering manufactured housing and want to explore your financing opportunities, start your journey with us today. The right loan is out there, and we’re here to help you find it.
