How to Finance an Older Mobile Home in California

Yes, you can finance an older mobile home in California! A used manufactured or mobile home offers one of the best ways to own an affordable home in California that fits your budget. Many buyers explore this option after comparing mobile home prices and affordability in 2024.

Getting a loan for an older mobile home works differently than traditional home loans. Most used manufactured homes, particularly those in mobile home parks, are considered personal property. This substantially affects your loan options. The most common way to finance used manufactured homes in California is through chattel loans, which use the home itself as collateral instead of the land it sits on. The good news is that government-backed programs like FHA Title II loans often come with low down payments for qualified manufactured homes.

Your potential home's classification as "real estate" or "personal property" makes a big difference in available financing options. We’ll look at several loan programs made specifically for older mobile homes in California and break down their requirements and benefits. If you’re planning to sell or buy later, understanding this distinction is critical when navigating the complexities of selling a mobile home in California.

This piece walks you through the essential steps to secure financing for your dream manufactured home. We'll cover everything you need to know, whatever the age or location of your home. Ready to dive in?

Understand the Type of Mobile Home You’re Buying

You need to know how your mobile home is classified before looking at financing options. This classification will affect your loan eligibility and terms, especially when dealing with a mobile home title in California.

Real property vs personal property explained

California law puts mobile homes into two categories: real property or personal property. The difference isn't about how the home looks—it comes down to how it's registered and connected to land.

Real Property:

A mobile home becomes real property when you permanently attach it to a foundation on land you own. Here's what you need:

• Installation on a permanent foundation system

• Ownership of both the land and the home

• Proper filing of a "433A" form with the county

• The mobile home title must be surrendered to the Department of Housing and Community Development

  
  

The county treats your mobile home like traditional real estate for tax purposes once it becomes real property. This process, often referred to as “de-titling,” permanently changes how lenders and the state view your home. If you’re unsure, this guide explains whether mobile homes have titles and how that impacts ownership.

Personal Property:

Mobile homes in parks or on rented land usually stay classified as personal property (also known as chattel). These homes:

• Keep a title and registration with the DMV or HCD

• Pay annual registration fees instead of property taxes

• Could be moved (though older homes rarely move)

• Don't include land ownership

Most older mobile homes in California fall into this category, particularly those in mobile home parks.

Why This Matters for Financing Options-Finance an Older Mobile Home in California

Your financing choices depend heavily on this classification.

For Real Property Mobile Homes:

• Access to traditional mortgage loans

• 30-year loan terms

• Interest rates usually 1–3% lower

• Higher borrowing limits

• More lender options

  
  

For Personal Property Mobile Homes:

• Chattel loans using the home as collateral

• Higher interest rates

• Shorter loan terms (15–25 years)

• Fewer lenders

• Stricter age requirements

  
  

First-time buyers often assume any mobile home qualifies for a standard mortgage. That misunderstanding causes delays, especially for park-based homes. Buyers considering resale later should also understand these differences when planning to sell a mobile home as-is.

Explore the 7 Most Common Loan Options in California

1. Chattel loans for park-based homes

Chattel loans are the most common financing option for older mobile homes in parks. Features include:

• 5–10% down payment

• Interest rates of 5–13%

• Terms up to 25 years

• Faster closings and fewer fees

  
  

2. Land + home mortgage loans

These loans combine financing for both the home and the land:

• 30-year terms

• Permanent foundation required

• Lower rates than chattel loans

  
  

3. FHA, VA, and government-backed loans

• FHA: 3.5% down with 580+ credit score

• VA: Low or no down payment for veterans

• USDA: No down payment for qualifying rural areas

  
  

4. Conventional loans from banks or credit unions

• Minimum 620 credit score

• Permanent foundation required

• Owned land only

  
  

5. Specialty manufactured home lenders

These lenders specialize in mobile homes and understand age, title, and park restrictions.

6. Refinance programs for existing owners

Available options include FHA Streamline, VA IRRRL, and chattel refinances depending on classification.

7. Non-conforming or alternative loan programs

• Jumbo loans

• Portfolio loans

• Private lending

  
  

How to Choose the Right Loan for Your Situation

• Park vs. owned land: Park homes usually require chattel loans

• Age of home: Pre-1976 homes face stricter limits

• Credit score: Higher scores unlock better terms

• Future plans: Refinancing is easier with real property classification

Before applying, confirm your home’s status with HCD or your county assessor.

Key factors:

1. Homes on owned land may qualify for FHA or conventional loans

2. Park-based homes typically require chattel loans

3. Homes built before 1976 have limited options

4. Credit scores of 580–620 unlock most programs

Home Type	Best Loan Option	Typical Term
Park-based	Chattel Loan	15–25 years
Owned land	FHA / Conventional	Up to 30 years