Yes, you can get an FHA loan on a manufactured home — as long as it was built after 1976 and meets other FHA guidelines. The FHA offers two FHA loan programs for manufactured homes, known as Title I and Title II loans.
Compare FHA loan offers to get the lowest rates and save thousands
Here’s how to use our tool to start searching for FHA loan rates:
1. Choose your loan purpose. You can get FHA loan rates for a home purchase or refinance.2. Enter your home’s value. If you’re buying, pick a price that fits your budget. You can use an online value estimator if you’re refinancing.
3. Enter your down payment (or mortgage balance). FHA loans only require a 3.5% down payment, but you can pay more if you have extra funds. If you’re refinancing, enter your mortgage balance instead of a down payment amount.
4. Choose your property use. You can only buy or refinance a primary home (the one you live in) with an FHA loan.5. Select your credit score range. The higher your credit score, the lower your rate will be.
6. Enter your ZIP code. Adding this will help us match you with lenders that offer FHA loan rates in your area.
FHA interest rates are typically lower than conventional loan rates, but will vary depending on your credit score, financial profile and lender. And when you add in the cost of FHA mortgage insurance, FHA loans may end up being more expensive than comparable conventional loans. That’s why it’s important to keep an eye on the total loan costs of any mortgage you’re considering, not just the interest rates.
What’s for certain, though, is that comparing loan offers to get the lowest rate can save you thousands of dollars in the long run.
How do I find FHA lenders to compare rates?LendingTree’s list of the best FHA mortgage lenders is a great place to start. You can also try a comparison rate site, or ask for a referral from a friend, relative or a real estate agent. You can look up FHA-approved lenders online through the U.S. Department of Housing and Urban Development’s lender list search tool.
An FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA). These loans cater to borrowers with credit blemishes and allow you to buy a house with a down payment as low as 3.5%. FHA loan guidelines are more lenient so that borrowers who can’t qualify for a conventional loan can still have a shot at homeownership.
Only FHA-approved lenders can offer you an FHA loan, which is important to know when you’re rate shopping.
Interest rates have been rising since early 2023 and crossed the 7% threshold in August, before continuing a steady march toward 8%. However, recent rates have been dropping slightly as the end of the year approaches. Still, LendingTree’s mortgage rates forecast expects them to remain high into the new year.
Yes, but that doesn’t always mean they’re cheaper. To understand why, you’ll need to pay attention to your annual percentage rate (APR). Unlike an interest rate, which only measures the cost to borrow money, an APR captures the total costs of a loan.
So while FHA loans may have attractive-looking interest rates, it’s also important to look at the APR. FHA loans often have higher APRs than comparable conventional loans because they require you to pay for FHA mortgage insurance.
How much is FHA mortgage insurance?The exact amount you’ll pay in mortgage insurance premiums will vary based on your loan amount. For example, an FHA borrower with a $300,000 loan amount can expect to pay $5,250 in upfront fees, and between $1,500 and $1,650 in annual premiums thereafter.
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Learn more about how to choose between a 15-year and 30-year mortgage.
| Pros | Cons |
|---|---|
Lower interest rates. You'll likely find that FHA loan rates are typically lower than rates on conventional loans. Lower credit score minimum. You can qualify with a credit score as low as 500. Small down payment requirement. You can qualify with as little as 3.5% down. Less paperwork. You may qualify for FHA streamline refinance options that don’t require income verification or a home appraisal. | Higher total costs. Your APR may be higher than with a similar conventional loan, due to FHA mortgage insurance. Higher monthly payments. Your monthly payment may be higher — even if your rate is lower — due to mortgage insurance charges. Higher risk. You may end up with a higher-priced mortgage loan, which is more likely to become unaffordable over time. |
You’ll need to meet the minimum requirements below to be approved for an FHA loan.
| Down payment | 3.5% with a 580 score 10% with a 500 to 579 score |
| Credit score | 580 with a 3.5% down payment 500 to 579 with a 10% down payment |
| Debt-to-income (DTI) ratio | 43% with exceptions up to 50% or higher |
| Occupancy | Must live in home as primary residence |
| Employment | Stable two-year employment history, no income limits |
| Assets | Down payment can be gifted by an employer, family member, close friend or charitable organization |
| Loan limits | $498,257 for a one-unit home in most parts of the country Higher FHA loan limits may be available in high-cost areas |
Yes, you can get an FHA loan on a manufactured home — as long as it was built after 1976 and meets other FHA guidelines. The FHA offers two FHA loan programs for manufactured homes, known as Title I and Title II loans.
Current FHA loan rates for a borrower with a 700 credit score are around 7.05%. Rates change daily, but for comparison that’s 80 basis points lower than the current average conventional loan interest rate.
You may not qualify for an FHA loan if you have a credit score below 500, you’re carrying too much debt already or you can’t save at least a 3.5% down payment. In addition, you’ll need to meet a slew of FHA guidelines related to your financial picture, employment history and your future home itself.
Yes. A variety of FHA adjustable-rate mortgages (ARMs) are available with introductory fixed-rate periods of one, three, five, seven or 10 years. Once the initial fixed-rate period ends, the rate will adjust, meaning your monthly payment will likely fluctuate for the remainder of the loan term.
If you can’t qualify for a conventional loan because your credit score is too low, it makes sense to look into an FHA loan. However, if you have good credit and can avoid expensive FHA mortgage insurance, you likely should. There are many low-down-payment loan programs available, especially if you’re a first-time homebuyer. You can also look into down payment assistance programs.
FHA mortgage insurance is mandatory for the life of an FHA loan with a 3.5% down payment. With a 10% down payment, you’ll pay the premiums for 11 years. To get rid of these payments, you can refinance to a conventional mortgage.