Land & Home Loans for Manufactured Homes

If you're buying land and a manufactured home at the same time, you may be able to finance both with one loan. This is often called a land and home loan or a land/home package. Because the land and the home secure the loan together, these loans usually come with lower rates and longer terms than a home-only chattel loan.

Here's how land and home financing works, step by step. Vision Homes, a manufactured and modular home dealer in Fayetteville, NC, wrote this for local buyers.

What is land and home financing?

It's a mortgage that covers both the land and the home. The home is set on a permanent foundation and, once it's permanently attached to land you own, it is treated as real estate, much like a site-built house. In North Carolina, that generally means the home's title is surrendered so the home and land are recorded and taxed together.

Because it's a real estate loan, you can often choose from conventional, FHA, VA and USDA programs. Read about FHA and VA loans →

This is different from using land you already own as your down payment. If you already own land, see Using your land as a down payment.

How it works

1. Get pre-approved. Start with a pre-approval so you know your budget for both the land and the home. Apply online →

2. Find the land. Before you commit to a lot, make sure a manufactured home is allowed there. Check zoning and any deed restrictions, whether there's road access, and whether you'll need a well and septic system or can connect to public water and sewer. In Cumberland County and nearby counties, the county planning and environmental health offices can tell you what a lot needs.

3. Choose your home. Pick a floor plan that fits the lot and your budget. Your price will include the home plus the site work to get it ready.

4. Appraisal and approval. The lender orders an appraisal of the land and home together, along with title work and often a survey. Once everything checks out, the loan gets final approval.

5. Close. You sign the loan paperwork and the land purchase closes. Depending on the lender, some money may be held back and released as work is finished.

After closing

Once the loan closes, the work to get the site ready and set your home begins. This can include:

• Clearing and grading the lot
• Building the permanent foundation
• Running power, water and sewer, or installing a well and septic system
• Driveway and access
• Permits and inspections

Delivery, setup and utilities

When the site is ready, the home is delivered, set on its foundation and anchored. Then utilities are connected and finishing work is done, like skirting, steps and decks. After the final inspections pass, the county issues the approval you need to move in.

Every lot is different, so timelines vary. We'll walk you through what to expect for your land.

Why choose a land and home loan?

• Lower rates and longer terms than most home-only loans
• Equity in both the land and the home
• One loan and one payment for both

It takes more paperwork and usually longer to close than a chattel loan, but for many buyers the lower monthly payment is worth it.

Ready to talk about land? Call Vision Homes at (910) 323-8222 or see all of our financing options.