Can you get a mortgage on a modular or prefab home?
Last updated November 2, 2026 · Prices from 1,645 Structofy listings
Yes: modular homes on a permanent foundation are usually financed like site-built houses, often with a construction-to-permanent loan, while manufactured homes can use FHA, VA, USDA or chattel loans. With the median home listing on Structofy asking $260,000 for the structure alone, most buyers finance the land, site work and home together.
How prefab financing differs from buying an existing house
When you buy an existing house, the lender has a finished property to appraise on day one. With a prefab home, the house does not exist yet, money is due to the factory before delivery, and site work happens in stages, so lenders usually use some form of construction financing.
The key questions a lender will ask are which building code the home follows, whether it will sit on a permanent foundation, and whether you own the land. Those three answers decide which loan programs are open to you.
Common loan types
| Loan type | Typical use | Things to know |
|---|---|---|
| Construction-to-permanent loan | Modular and other code-built prefab homes | One closing; pays the factory and contractor in draws, then converts to a regular mortgage |
| Separate construction loan + mortgage | Modular homes | Two closings and two sets of fees, but can offer flexibility |
| Conventional mortgage | Completed modular homes, or refinancing after construction | Treated like a site-built home once finished and appraised |
| FHA, VA and USDA programs | Modular and qualifying manufactured homes | Government-backed; foundation and eligibility rules apply |
| Chattel (personal property) loan | Manufactured homes not tied to owned land | Often shorter terms and higher rates than mortgages |
| Land loan | Buying the lot first | Often needs a larger down payment; can be rolled into a construction loan later |
What you will be financing
The home price is only one line in a construction loan budget. Lenders will usually want a full cost breakdown that includes the land, foundation, delivery and set, utility connections, permits and a contingency.
For reference, here is what the homes themselves are listed for on Structofy right now. Builders that do not publish prices are excluded from the price columns.
| Group | Listings | With a price | Lowest | Median | Highest | Median $/sq ft | Median size |
|---|---|---|---|---|---|---|---|
| Modular | 232 | 46 | $59,905 | $289,000 | $990,000 | $300 | 1,577 sq ft |
| Pre-fab house | 304 | 96 | $17,702 | $216,000 | $1,033,995 | $141 | 1,900 sq ft |
| Manufactured (HUD-code) | 897 | 21 | $149,500 | $230,000 | $288,500 | $105 | 1,475 sq ft |
| Tiny house | 59 | 40 | $15,555 | $97,000 | $274,800 | $258 | 400 sq ft |
Source: 1,645 home listings on Structofy, as published by each builder, read when this page loads. Prices are the builder’s listed base price; listings without a price are counted but not used for price figures. Median means half the listings cost less and half cost more. These are listing prices, not finished project costs.
How the draw process usually works
Construction loans normally pay out in stages, called draws, rather than all at once. A typical schedule might cover the factory deposit, a payment when the home is completed at the plant, a payment at delivery and set, and a final payment when the home is finished and passes inspection.
Factory deposits are sometimes due before the loan will fund them, so ask the builder and lender early how the deposit will be handled. Make sure the builder's payment schedule and the lender's draw schedule line up before you sign.
Tiny houses and ADUs
Tiny houses on wheels are frequently financed with RV loans or personal loans rather than mortgages, because they are not permanently attached to land. Tiny houses on foundations that meet local code may qualify for more traditional financing.
Backyard ADUs are often financed with a home equity loan, a home equity line of credit, a cash-out refinance or a renovation loan secured by your existing home. See our ADU cost guide and tiny house cost guide for prices.
Tips before you apply
- Talk to lenders who regularly finance modular or manufactured homes; experience matters.
- Get a written quote from the builder that lists exactly what is and is not included.
- Confirm with your local zoning office that the home type is allowed on your land.
- Ask how the home will be titled and appraised once complete.
- Keep a cash contingency for site surprises that a loan may not cover.
Frequently asked questions
Is it harder to get a mortgage on a modular home?
Usually not. Once a modular home is complete on a permanent foundation, most lenders treat it like a site-built home, although the construction phase needs a construction loan.
Can I use an FHA loan for a prefab home?
FHA programs can be used for qualifying modular and manufactured homes, subject to foundation and other requirements. A lender can confirm eligibility for a specific home.
Do I need to own land before financing a prefab home?
Not always. Some construction loans can finance the land purchase and the home together, but owning the land can make approval easier.
How much down payment do I need?
It depends on the loan program and your credit. Government-backed programs can allow low down payments, while construction and land loans often require more.
Keep exploring
Structofy is a directory of factory-built homes and does not build, sell or finance homes. General information on this page is not financial, legal or building advice; confirm details with builders, lenders and your local building department.