By Mohave Homes
Buying a manufactured home is exciting—until you reach the financing stage and discover that not every lender treats factory‑built housing the same way. Rates, terms, and qualification rules vary widely, and the wrong choice can cost you thousands over the life of your loan.
This guide demystifies manufactured home lenders in Arizona, covering loan types, credit benchmarks, down‑payment strategies, and comparison tips so you can fund your new home confidently and affordably.
Quick Resource: If you still need an overview of loan products, see our state‑specific breakdown at Financing Options for Manufactured Homes in Arizona and Nevada.
1 | Manufactured‑Home Loan Types Available in Arizona
| Loan Type | Best For | Typical Terms | Pros | Cons |
|---|---|---|---|---|
| Chattel Loan | Home on leased land or family acreage | 15–23 yrs Fixed | Fast approvals; minimal land docs | Higher rates; shorter term |
| Land‑Home Package | Purchasing land & home together | 20–30 yrs Fixed/ARM | Conventional‑level rates; one payment | Larger down payment (5–20 %) |
| FHA Title II | Buyers <680 FICO | 20–30 yrs Fixed | 3.5 % down; competitive rate | Up‑front & annual MIP |
| VA Manufactured‑Home Loan | Veterans & active duty | 20–25 yrs Fixed | 0 % down; no PMI | Funding fee; VA appraisals |
| USDA Rural Development | Rural properties | 30 yrs Fixed | 0 % down; subsidized rate | Geographic & income limits |
(All loans require the home to meet HUD code and local installation standards.)
2 | Credit Scores & Down Payments: What Lenders Expect
Minimum FICO Targets
- Conventional/Conforming: 640–680
- FHA: 580 (3.5 % down) or 500 (10 % down)
- VA: 580–620 (lender overlay)
- Chattel: 600–640 typical
Boosting Approval Odds
- Pay credit‑card balances below 30 % utilization.
- Dispute errors on your credit report early—corrections can take 30+ days.
- Avoid new inquiries for 90 days prior to mortgage application.
A 40‑point FICO boost can lower your rate by up to 1 %, saving ~$35–$120 per month on a $200k loan.
3 | Comparing Manufactured‑Home Lenders in Arizona
| Lender Category | Examples | Ideal Borrower | Watch For |
|---|---|---|---|
| National Banks | 21st Mortgage, Wells Fargo | Strong credit, land‑home deals | May not finance single‑wides older than 10 yrs |
| Credit Unions | Desert Financial, OneAZ | Members wanting local decisions | Membership eligibility; regional limits |
| Specialty MH Lenders | Credit Human, Cascade Financial | Mid‑tier credit, chattel loans | Higher origination fees |
| Community Banks | Western State, Mohave State Bank | Rural land packages | Smaller maximum loan amounts |
Due‑Diligence Checklist
• Compare APR, not just note rate.
• Check rate‑lock length—factory builds can stretch 120 days.
• Read reviews on BBB & CFPB to spot service‑issue patterns.
4 | Preparing a Winning Loan Application
- Income Docs—2 yrs W‑2s (or tax returns if self‑employed) + 60 days bank statements.
- Home Specs—manufacturer invoice, floor plan, HUD‑label numbers.
- Land Evidence—deed, purchase contract, or long‑term lease (if in a park).
- Site‑Prep Budget—foundation, utilities, grading; lenders often escrow these costs.
- Insurance & Taxes—Arizona property tax + hazard insurance added to DTI.
Most lenders cap DTI at 43–45 % (land‑home) or 50 % (FHA/VA with compensating factors).
5 | Common Financing Pitfalls—and How to Avoid Them
| Pitfall | Consequence | Solution |
|---|---|---|
| Locking rate before final factory price | Re‑underwriting, extra fees | Confirm spec sheet first |
| Underestimating setup costs | Funding gap at closing | Add 10–15 % contingency |
| Choosing land without utility access | Extra out‑of‑pocket expense | Verify water, sewer, power BEFORE appraisal |
| Ignoring park‑approval timelines | Lost rate‑lock | Submit park paperwork same week as loan app |
For placement guidance, see Transport & Setups.
6 | Sample Cost & Payment Breakdown
Scenario: $240,000 land‑home package • 680 FICO • 10 % down
30‑year fixed @ 6.875 % APR
| Item | Amount |
|---|---|
| Loan Principal | $216,000 |
| Monthly P&I | $1,417 |
| Taxes & Insurance (est.) | $175 |
| Mortgage Insurance (FHA) | — |
| Total Payment | ≈$1,592 |
Refinance after 18‑24 months if rates drop or credit improves to eliminate MIP or lower your APR.
7 | Frequently Asked Questions
Q: Can I use a standard 30‑year conventional mortgage?
A: Yes—if your home is on a permanent foundation, titled as real property, and meets Fannie/Freddie guidelines.
Q: Will a bigger down payment offset a lower credit score?
A: Often. Some lenders approve scores down to 600 with ≥ 10 % down.
Q: How long does underwriting take?
A: Pre‑approval in 24–48 hrs; full clear‑to‑close in 25–40 days, depending on appraisals and title work.
Conclusion
Finding the right manufactured‑home lender in Arizona can dramatically improve affordability and long‑term satisfaction. By comparing loan programs, prepping your credit, and understanding down‑payment rules, you’ll set yourself up for a smooth closing and manageable monthly payment.
Mohave Homes partners daily with Arizona’s most reputable lenders. We’ll connect you with specialists who understand HUD‑code homes, walk you through paperwork, and coordinate funding with factory build schedules.
Ready to get pre‑qualified? Contact Mohave Homes for lender introductions, credit‑boost tips, and a clear roadmap to factory‑built homeownership.
Contact Mohave Homes
Mohave Homes, Inc.
4311 Highway 68 • Golden Valley, AZ 86413
Phone: 928‑565‑4400
Email: info@mohavehomes.com
Hours: Mon–Fri 9 am–5 pm • Sat 10 am–3 pm • Sun by appointment
Additional Resources
- Financing Options for Manufactured Homes in Arizona and Nevada
- Maintaining Your Manufactured Home: Tips for Longevity in Arizona and Nevada
- Manufactured Home Permits in Arizona: A Guide
- Transport & Setups
- FAQ
Mohave Homes—Guiding Arizona buyers to the best manufactured‑home lenders and the best deals.
