Frequently Asked Questions

How do I Buy a Manufactured or Modular Home?

By visiting this, you’ve already taken the first step in purchasing a quality home in Arizona. Just like a car, you cannot purchase a new home directly from the manufacturer. New manufactured homes can only be purchased through licensed retailers like our members. As you browse through the websites of our members or visit their on-site sales locations, start thinking about your current and future housing needs. Begin the thought process with the number of bedrooms and bathrooms you’ll need and continue with amenities, upgrades, and finishes.
Get through that process and our members’ professional sales teams can help you choose the perfect home for your lifestyle and budget.


A rumor we would like to dispel about factory-built home financing is that it is harder to obtain than if you were buying a site-built structure. In actuality, the process of applying for a loan and obtaining insurance is very similar for each. Many financial institutions – from large, national lenders to regional and local banks and credit unions – have a variety of lending programs that are specifically designed for buyers of factory-built housing. Down payment requirements and loan terms differ from lender to lender, though in the world of factory-built housing, down payments between 5 and 10 percent, term lengths between 15 to 30 years, and affordable insurance rates are the norm.

It is important to note the two main ways to finance a factory-built home. If you have purchased a parcel of land along with your manufactured home, you can qualify for a conventional mortgage. However, if your home is located on leased land, your home will be titled as personal property and financed through a personal property (chattel) loan.

Interest rates for factory-built homes vary based on the age and size of the home, the location of the home, the loan amount, the down payment, and the borrower’s credit. The interest rate on chattel loans may be higher than for a conventional mortgage, but loan payments for manufactured homes on leased land are typically less than for a site-built home or rent for a comparable apartment.

Other factors that are present when seeking financing and obtaining insurance for a factory-built house include:

  • Your credit history
  • Your income history
  • Your employment status
  • Your debt-to-income (DTI) ratio
  • The size of your down payment
  • The cost of the home

Before you apply for loans, gather all your financial records. The more prepared you are and the more your financial situation is in order, the smoother the process is for obtaining financing and insurance for your home. The best way to determine your budget is to get pre-approved by a lender. This lets you know what you can afford based on your current financial situation. It also gives you the opportunity to shop around and learn more about the various loans you may be eligible for. In addition, most banks have a mortgaging checklist that will help you through the necessary steps for financing your manufactured home. Another tool you can use for estimating the range of your total cost is an online mortgage calculator. A mortgage calculator can generate your estimated monthly mortgage payment after factoring in a variety of relevant variables, such as your loan amount, interest rate, and desired loan term length.

MHIA-affiliated lenders are your best source of information regarding financing a factory-built home. All offer competitive rates on both land-home packages and leased land arrangements.


When deciding on the location of your new home, it’s important to consider what each potential area offers in terms of geographical area, local neighborhood and community amenities, as well as how they can accommodate your lifestyle. Consider what you want for you and your family and gather information on each location to make the most informed decision possible.

You and your family can have your factory-built home on private land in Arizona, or you can choose to live in one of many manufactured home communities. If you decide to purchase real estate instead of residing in a land-lease community, you will have plenty of options. You can buy a lot of land on private property or in a subdivision or you can buy land in a community with common ownership, such as a condominium or cooperative. Before you purchase your own real estate, it is crucial to take care of preliminary steps such as surveying the land, researching the zoning laws, establishing water and sewer service, and obtaining the necessary title permits. For more information, it’s best to visit a retailer or real estate agent that can guide you in the right direction, as they are familiar with the local real estate markets and can help you find the property you need.

Alternatively, you can buy or lease a home in a manufactured home community. There are several benefits to living in a land-lease community, including social or activity clubs, fitness amenities, and, of course, friendly neighbors. There are two main types of manufactured home communities:

  • All-age communities – These communities are designed to accommodate families of all ages. There are no age restrictions, so families with children are welcome. These communities offer different amenities and features, so be sure to research what’s important to you in a planned community and neighborhood.
  • 55+ communities – These communities typically require at least one resident in the home to be 55 years of age or older. A 55+ community – also called an age-restricted community, retirement community, or active adult community – is a place designed to accommodate the lifestyle goals of older individuals who desire affordable, low-maintenance housing inside of a development with lots of age-appropriate facilities and activities.

Finding a location to build your home is easier when you can talk to knowledgeable people in the industry. The Manufactured Housing Industry of Arizona (MHIA) website– the voice of the factory-built housing industry in Arizona – can connect you with home retailers, manufactured home communities, lenders, installers, and other service providers in our network who can assist you during the decision-making process.


In order to achieve ownership of a factory-built home, it is advised that you first establish a realistic idea of how much you can afford to spend on a home. You should write down clear and specific goals you have for your home, and consider what is critical and what is optional for you. Consider all actual and possible costs of homeownership, including land lease or purchase, mortgage, insurance, taxes and maintenance. With help from MHIA and our constituent members, you will be able to make sound decisions throughout the process.

What happens after you have purchased and financed your new factory-built home?

Once everything is finalized, the next steps are the construction of your home and its delivery and installation. You’ll need to make sure the land you’ve purchased or leased is ready for the installation of your home before it is delivered from the factory. This means laying the foundation and connecting utilities such as water, gas, sewage and electricity. Once your new home is delivered for installation, all that is left is the finish work and the final inspection. The finish work includes hooking up your utilities, landscaping, and installations such as HVAC, carpet, and roof shingles. After the finishing touches are set, your retailer or manufacturer’s representative should walk through your new home and conduct the proper inspections. Your retailer should also give you information on who to contact for future maintenance on your home and how to make a warranty claim. You should receive a HUD home-owner’s manual that will be your guide to properly caring for your new home.

After that—congratulations! Your home is finished, and it is time to start living the dream. You now own a high-quality, secure, and personally customized home and have joined the growing millions of factory-built homeowners across the country.

For more information on taking the next step, refer to the MHIA website, one of the most influential voices in the factory-built home industry for more than twenty-five years. We also invite you to contact any of our members directly, whether you have questions about financing a factory-built house, obtaining insurance, selecting a floor plan, or any other matter related to the home-buying process.

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