Mobile and manufactured homes can offer accessible paths to homeownership. But as interest rates shift or personal finances evolve, many homeowners look to refinance. If you’re exploring ways to lower monthly payments, access better loan terms, or tap into equity, this guide is for you.
What Is Mobile Home Refinancing?
Refinancing a mobile home means replacing an existing loan with a new one. This new loan typically comes with different terms—such as a new interest rate, a different payment period, or a lower monthly payment.
Mobile home refinance loans work much like traditional mortgage refinancing. But there are specific requirements and loan types to consider, especially depending on whether the home is considered personal property (chattel) or real property.
When Is Refinancing a Mobile Home a Good Idea?
Refinancing might make sense if:
- Interest rates have dropped since the original loan
- You’ve improved your credit score
- You want to switch from an adjustable to a fixed-rate loan
- You need to access equity through a cash-out refinance
- You want to move from a chattel loan to a traditional mortgage
The team at eLEND can walk you through a personalized refinance strategy based on your goals and eligibility.
Loan Types for Mobile Home Refinancing
Not all mobile home loans are the same. Some are structured like personal loans; others are mortgages. Here’s what to know:
1. Chattel Loan Refinance
A chattel loan is secured by the mobile home itself, not the land.
- Ideal for homes in parks or on leased land
- Often comes with shorter terms and higher rates
- Refinance options are limited but possible
Many homeowners want to convert a chattel loan to a traditional mortgage if the home is placed on owned land.
2. Mortgage Refinance for Manufactured Homes
If your mobile or manufactured home is permanently installed on owned land, you may be eligible for a traditional mortgage refinance.
At ManufacturedHome.Loan, programs are available for both purchase and refinance options.
How to Refinance a Mobile Home: Step-by-Step
Step 1: Determine Property Classification
Is your home considered real property or personal property?
- Real property: The home is affixed to land and titled as real estate.
- Personal property: The home is movable or located on leased land.
This classification determines your refinance options.
Step 2: Review Current Loan Terms
Gather the following information:
- Current loan balance
- Interest rate
- Loan term
- Remaining payment schedule
Use this data to compare potential refinance savings.
Step 3: Check Credit and Financial Standing
Refinance approvals often depend on:
- Credit score
- Debt-to-income ratio
- Home value
- Loan-to-value ratio (LTV)
At eLEND, most refinance programs require a credit score of 580 or higher, though exceptions exist.
Step 4: Choose the Right Loan Program
Available options for real property include:
- FHA Refinance: For qualified homes with flexible credit requirements
- VA Refinance: For eligible veterans and service members
- USDA Refinance: For homes in designated rural areas
- Conventional Refinance: For borrowers with strong credit
If you’re unsure which program fits, connect with a loan specialist for guidance.
Step 5: Compare Lender Offers
Use key metrics to compare:
- New interest rate
- Monthly payment
- Closing costs
- Total cost over time
Ask for a Loan Estimate (LE) from each lender to compare apples to apples.
Step 6: Prepare for Appraisal and Inspection
For most refinance types, an appraisal is required. This helps determine the home’s current market value.
- Homes must meet HUD code standards
- Foundation and site conditions may be inspected
- Recent upgrades can increase value
Step 7: Close on the New Loan
Once the loan is approved:
- Review the Closing Disclosure (CD)
- Sign new loan documents
- Old loan is paid off
- New loan terms take effect
You may be required to escrow property taxes and insurance depending on the program.
Frequently Asked Questions (FAQ)
Can I refinance a mobile home without land?
Yes. If the home is on leased land or in a mobile home park, refinancing is still possible, usually through chattel or personal property loans. We do have the ability to originate loans for homes on leased land, so visit eLEND’s Manufactured Home Loan page or connect with a loan specialist to see your options.
Can I refinance to a mortgage if I own the land?
Yes. Owning the land and permanently affixing the home improves eligibility for traditional mortgage refinancing.
What credit score is needed to refinance a mobile home?
Most lenders require a minimum score of 620, but FHA and VA options may allow for lower scores.
What are closing costs for a refinance?
Expect to pay between 2% to 5% of the loan amount. These can sometimes be rolled into the loan.
Is cash-out refinancing available?
Yes. Cash-out refinance loans allow you to access home equity for renovations, debt repayment, or other purposes. Your home must meet equity and valuation requirements.
Can I refinance a mobile home with bad credit?
It’s harder, but not impossible. FHA or in-house financing may offer more flexibility. A loan specialist can help you explore the best path forward.
What Sets eLEND Apart
eLEND offers deep expertise in mobile and manufactured home financing. We simplify a complex process and offer multiple refinance programs including:
- FHA
- VA
- USDA
- Chattel refinance
- Conventional options
With transparent guidance, fast prequalification, and a dedicated support team, we help mobile homeowners refinance with confidence.
When to Refinance a Mobile Home
Wondering if now is the right time? Consider these signs:
- Your interest rate is above current market rates
- You need lower monthly payments
- You’re switching to a fixed rate for predictability
- You want to consolidate debt
- You’ve built equity and want to access it
Checklist: What You’ll Need to Apply
- Government-issued ID
- Proof of income (pay stubs, W-2s)
- Two months of bank statements
- Mortgage statement from current lender
- Proof of homeownership or land ownership
- Title and VIN number (for chattel loans)
- Property tax and insurance info
Gathering this ahead of time makes the process smoother.
Final Thoughts
Refinancing a mobile home doesn’t need to be difficult. With the right partner, it can be a straightforward way to save money or improve your loan terms.
Whether you’re looking to refinance a mobile home mortgage, convert a chattel loan, or explore mobile home refinance loans tailored to your needs, eLEND is here to help.
Ready to Start?
Visit eLEND’s Manufactured Home Loan page or connect with a loan specialist to see your options.
Lender NMLS: 2826
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please visit here. Some products may not be available in all states. This is not a commitment to lend. All loans subject to credit approval. Equal Housing Lender.