Lending
Construction loan options for factory-built homes in Arizona
USDA, FHA, VA, conventional and chattel loans compared.
1. USDA Single-Close Construction
$0 down for eligible buyers and properties. The property must be in a USDA-eligible rural area and household income must be under the county limit. When it fits, it's usually the lowest-cost path.
2. FHA One-Time Close
Minimum 3.5% down. One closing covers construction and the permanent mortgage, and the home must sit on a permanent foundation that meets HUD's requirements. Ask your lender for current program terms.
3. VA Construction/Permanent
Standard VA $0-down eligibility applies for qualified veterans and service members. The home must be permanently affixed to the land and classified as real estate. Ask a VA-approved lender for current construction terms.
4. Conventional
Fannie Mae and Freddie Mac offer construction-to-permanent products, plus MH Advantage and CHOICEHome programs for residential-style homes titled as real property. Down payment and rate depend on the lender and your credit; these aren't zero-down.
5. Chattel loan
Finances the home only, titled like a vehicle, usually when the buyer doesn't own the land. Rates are typically higher and terms shorter. It isn't our standard path: every Land & Homes Arizona home is affixed to owned land and financed as real property.
The common thread
Every option except chattel requires the home to be permanently affixed to owned land and recorded as real property through Arizona's Affidavit of Affixture.