If you’re looking to buy a mobile home and have a limited amount of money to put toward your purchase, you may want to consider an FHA mobile home loan. FHA stands for Federal Housing Administration and is responsible for Housing and Urban Development (also known as HUD). How does this help you? FHA insures your home loan so lenders will give you a good deal, even if you don’t have a large down payment.

Under the FHA mobile home loan umbrella, there are two types of programs. One is for people who already own land to place their mobile home and the other is for people who choose to locate their mobile home in an established mobile home park.

When lenders consider applicants for FHA-backed mobile home loans, they must meet certain eligibility requirements. These requirements include considering the applicant’s credit score, income, and ability to repay the debt.

A Title 1 loan can be used to purchase a mobile home, a mobile home lot, or both. The home must be the principal residence of the person or persons obtaining the loan. There are maximum loan amounts, as well as loan terms that must be met, as follows. For a mobile home only, the maximum is $48,600. For a piece of land or lot, the maximum is $16,200, while the maximum for a combination of the two is $64,800. The maximum terms for FHA mobile home loans are: 20 years for a mobile home or single section mobile home and lot, 15 years for a lot, and 25 years for a multi-section mobile home and lot .

Most of the time, when you buy a mobile home, you will also have the opportunity to finance your purchase at the mobile home dealer where you make your purchase. Sometimes these dealerships do not offer FHA-backed loans. If they don’t, ask them to refer you to a lender that will use the FHA. Or you could consider finding a lender online.

To qualify for an FHA-backed mobile or manufactured home mortgage loan, you must meet a few minimum criteria. You must be able to provide a five percent down payment (although there are additional programs to help you if you don’t have this amount), proof of income, and a suitable location to locate your mobile home (this can be on your own lot or in a home park mobile).