Manufactured Home Loans in Tennessee

Manufactured vs. mobile home: the key distinction

Homes built in a factory after June 15, 1976 are classified as "manufactured homes" and must comply with HUD's Manufactured Home Construction and Safety Standards (the HUD Code). Homes built before that date are classified as "mobile homes" and generally cannot be financed with FHA, VA, or conventional loans.

The HUD certification label (a small metal plate on the exterior) confirms the home meets the HUD Code. Lenders will require this label to be present and legible. If the label is missing, the home may not qualify for standard residential financing.

Titling and real property conversion

For a manufactured home to qualify for FHA, VA, or conventional financing, it must be titled as real property — not personal property. This requires the home to be permanently affixed to a foundation on land that the borrower owns (or is purchasing simultaneously), and the title must be converted from a vehicle title to a real property deed.

In Tennessee, this conversion is handled through the county register of deeds. If the home is currently on a leased lot or titled as personal property, it will need to be converted before standard mortgage financing can be used. Morgan Hardy can walk through the conversion process and timeline.

Foundation requirements

FHA and VA loans require a permanent foundation that meets HUD guidelines. The foundation must be inspected and certified by a licensed engineer. Common foundation types that qualify include concrete perimeter foundations and concrete block piers with tie-downs. Homes on temporary blocks or without a permanent foundation do not qualify.

Conventional loans (Fannie Mae/Freddie Mac) also require permanent foundations and have additional requirements around the home's age and condition.

FHA, VA, and conventional options

• FHA: Available for manufactured homes on permanent foundations. Minimum 3.5% down with 580+ credit score. The home must be the borrower's primary residence.
• VA: Available for eligible veterans. Zero down payment. The home must meet VA's manufactured home requirements and be on a permanent foundation.
• Conventional (Fannie Mae MH Advantage): Available for newer manufactured homes that meet specific design standards. Lower rates than standard manufactured home loans.
• USDA: Available in eligible rural areas for manufactured homes that meet USDA's property standards.