Housing Advisor’s Guide to Financing Factory-Built Homes

This practical, two-page guide equips housing counselors and advisors with the foundational knowledge needed to help consumers navigate financing options for factory-built homes. It breaks down the factory-built home financing journey—from early counseling conversations to post-purchase considerations—while clearly explaining loan types, lender options, and consumer protections.

The guide highlights key differences between mortgage loans and chattel loans, outlines the role of HUD-certified housing counseling, and emphasizes strategies to help buyers compare lenders, understand interest rates and fees, and plan for long-term affordability. It also reinforces the cost-saving potential of energy-efficient factory-built homes and the importance of maintenance planning after move-in.

Factory-built homes can cost up to 30% less than traditional new homes, but financing options can be confusing for consumers. This guide helps housing professionals provide clear, accurate guidance that supports sustainable homeownership and long-term affordability.

  • How factory-built home financing compares to traditional home financing
  • The differences between mortgage loans and chattel loans—and when each applies
  • Types of lenders that finance factory-built homes, including conventional, government-insured, and mission-driven lenders
  • How to help buyers compare loan terms, APR/APOR, and consumer protections
  • Post-purchase considerations, including energy savings and maintenance planning