Mobile Home Buying: The Credit Score You Need

Mobile homes offer an affordable and versatile housing option for many individuals and families. They provide a high level of customization and flexibility, allowing homeowners to choose the size, layout, and location of their residences. 

As the demand for affordable housing options increases, more and more people consider mobile homes a viable solution. But, like any other major purchase, buying a mobile home requires good credit. 

So, what kind of credit score do you need to buy a mobile home? This article will examine the credit requirements for mobile home financing and provide tips on improving your credit score to secure the best loan rates and terms.

Understanding Credit Scores

Before diving into the specific credit score requirements for purchasing a mobile home, it is crucial that we first understand what a credit score is and why it matters. A credit score is a three-digit number that represents an individual’s creditworthiness. 

It is calculated based on your credit history, including factors such as payment history, outstanding debt, credit utilization, and the length of your credit history. The most widely used credit scoring model is the FICO score, ranging from 300 to 850. 

The higher your score, the more likely lenders are to approve your loan application and offer favorable interest rates and terms.

FICO scores are divided into five categories:

  • Exceptional: 800 and above
  • Very Good: 740-799
  • Good: 670-739
  • Fair: 580-669
  • Poor: 579 and below

Lenders use credit scores to assess the risk of lending money to an individual. A higher credit score indicates that you are less likely to default on a loan, making it more likely for a lender to approve your application. 

On the other hand, a lower credit score may signal that you are a higher-risk borrower, making it more challenging to secure financing.

Credit Score Requirements for Mobile Home Financing

When purchasing a mobile home, two financing options are typically available: chattel loans and mortgages. The credit score requirements for these loans differ, so it is essential to understand the type of financing you seek.

1. Chattel Loans

A chattel loan is the most common type of loan for mobile homes. It is a personal property loan specially designed to purchase manufactured homes not permanently attached to the land. These loans are not secured by real estate, meaning they generally have higher interest rates and shorter repayment terms than traditional mortgages. 

The minimum credit score requirement for chattel loans varies by lender, but most require a score of at least 600 to 650. Some lenders may offer chattel loans to borrowers with credit scores as low as 500, but they will likely face higher interest rates and fees.

2. Mortgages

If you plan to purchase both the mobile home and the land it will sit on, you may be eligible for a traditional mortgage. Mortgages generally have lower interest rates and longer repayment terms than chattel loans, making them a more affordable financing option for many buyers. Unfortunately, they are generally more difficult to obtain than chattel loans, with higher credit score requirements.

To qualify for a mortgage on a mobile home, you typically need a credit score of at least 620 to 680. However, some lenders may have higher credit score requirements, so shopping around and comparing offers from multiple lenders is essential.

Improving Your Credit Score for Mobile Home Financing

If your credit score is below the minimum requirements for mobile home financing, there are steps you can take to improve your credit score before applying for a loan:

  • Check Your Credit Report: Obtain a copy of your credit report from the three major credit bureaus (Equifax, Experian, and TransUnion) and review it for errors. If you find any inaccuracies, dispute them with the credit bureaus to have them removed from your report.
  • Make Timely Payments: Your payment history makes up a significant portion of your credit score, so ensure that you are making all of your payments on time. Setting up automatic payments or payment reminders can help you stay on track.
  • Reduce Your Debt: High credit card balances can negatively impact your credit score. Aim to keep your credit utilization ratio (the amount of debt you owe compared to your available credit) below 30%.
  • Keep Old Credit Accounts Open: The length of your credit history also impacts your credit score. Each time you apply for credit, it can result in a hard inquiry on your credit report, which can lower your score. Limiting new credit applications and keeping older credit accounts open can help to maintain a longer credit history and positively impact your score.


The credit score required for purchasing a mobile home depends on the type of financing. A higher credit score can lead to better loan terms and interest rates. Improve your credit score by reducing debt, maintaining a low credit utilization ratio, and keeping longstanding credit accounts.

40 Oaks Properties is a dependable and reputable source for reasonably priced apartments in Lexington, NC, and its surrounding areas. We offer a variety of options to suit your unique requirements, whether you’re looking for an apartment to rent or a mobile home to buy. Reach out to us today, and we’ll help you find the ideal mobile home in Lexington, NC, that aligns with your financial and lifestyle preferences.