What are the financing options available for purchasing a modular home?

California Modular Houses builds Factory Built Housing which is what the state and building code refer to it as while those of us in the industry refer to our homes as Modulars.

A single-story white house with a front porch, surrounded by trees and a mostly gravel yard, under a cloudy sky. Accessory Dwelling Unit Prefab Modular Home for Sebastopol, CA. Modular ADU California. Sonoma County.
A yellow house with a black front door and white-framed windows, set against a mountainous landscape. Tujunga Sunland, Los Angeles County, CA. Modular Home CA. Prefab Modulars.

What are the financing options available for purchasing a modular home?

Financing a modular home is similar to traditional home financing in many cases, but it depends on how the home is classified and installed.

Common financing options:

Conventional mortgages
Used when the home is installed on a permanent foundation and considered real property.

FHA, VA, and USDA loans
Government-backed options that may be available if the home meets program requirements.

Construction-to-permanent loans
A popular option for new modular builds—covering construction and converting into a long-term mortgage.

Chattel loans
Used when the home is not classified as real property (less common for permanent installations).

Other options
Land/home packages, home equity loans, or working with lenders experienced in modular construction.

What to consider first:

  • Will the home be classified as real property?

  • Will it be installed on a permanent foundation?

  • Does the lender have experience with modular construction?

How we help:
While we don’t provide financing directly, California Modular Houses helps clients understand what to expect, coordinate documentation, and navigate the process alongside lenders familiar with modular homes.