If you are buying a manufactured home on your own land in California, FHA and VA loans are two of the most powerful financing tools available. This guide breaks down eligibility, down payments, foundation rules, and how to choose the right program for your family.
A side-by-side look at the two most popular government-backed loan programs for factory-built homes on owned land.
| Feature | FHA Loan | VA Loan |
|---|---|---|
| Minimum down payment | 3.5% (580+ credit score) | 0% — no down payment required |
| Credit score minimum | 580 for 3.5% down; 500–579 requires 10% | No VA minimum; lenders typically want 620+ |
| Mortgage insurance | Upfront MIP + annual MIP for life of loan | One-time funding fee; no monthly PMI |
| Who qualifies | Any qualified buyer; first-time buyers welcome | Active duty, veterans, surviving spouses with Certificate of Eligibility |
| Manufactured home type | Title I (no land) or Title II (land + home) | Must include land; home must be real property |
| Foundation requirement | Permanent foundation required for Title II; 433A in California | Permanent foundation required; 433A in California |
| Debt-to-income ratio | Up to 50% with compensating factors | Up to 41% standard; higher possible with residual income |
| Loan limits (2025) | Varies by county; ~$524k–$1.2M in California | No cap for full entitlement; conforming limits apply for reduced |
| Rate comparison | Competitive; slightly higher than conventional | Often lowest rates available; backed by federal guarantee |
Figures are illustrative and based on 2025 program guidelines. Actual terms depend on lender, credit, property, and county. Nestably is not a lender.
FHA offers two paths for manufactured homes. Most California families on owned land use Title II — but Title I is an option if you already hold the land free and clear.
Finance the manufactured home itself without buying land. Maximum loan amounts are lower (around $69,500 for the home, $23,000 for lot improvements), terms are shorter (20 years), and rates are slightly higher. Best when you already own the land outright.
The full real-property package. The home must be on a permanent foundation, you must own or be purchasing the land, and the home must be taxed as real estate. This is the FHA route most California families use when building on owned land.
For a $200,000 manufactured home + land package, a 3.5% FHA down payment is $7,000. You'll also pay an upfront mortgage insurance premium (MIP) of 1.75% ($3,500), which can be rolled into the loan. Annual MIP runs approximately 0.55% of the loan balance — roughly $90/month on that example. Unlike conventional loans, FHA MIP typically stays for the life of the loan unless you refinance.
For veterans and active-duty service members, the VA loan is one of the most generous programs in American housing — and it absolutely includes manufactured homes on owned land.
For eligible veterans and service members buying a manufactured home + land package. No down payment required, no monthly mortgage insurance, and competitive rates. The VA guarantees a portion of the loan, reducing lender risk and your cost.
If you already own land and want to add a manufactured home, a VA cash-out refinance can tap your land equity to fund the home purchase and site work. Useful for veterans who bought land first and now want to build.
Instead of monthly mortgage insurance, VA loans charge a one-time funding fee. For first-time use with 0% down, the fee is typically 2.15% of the loan amount. On a $200,000 loan, that's $4,300 — but it can be financed into the loan, so your out-of-pocket cost at closing remains $0. Subsequent use carries a slightly higher fee (3.3%). Disabled veterans receiving VA compensation are often exempt from the funding fee entirely.
By comparison, FHA borrowers pay both an upfront premium (1.75%) and monthly MIP for the life of the loan. Over 10 years, that monthly MIP can add $10,000 or more to the total cost of homeownership — making the VA's one-time fee significantly cheaper for eligible borrowers.
FHA and VA both require a permanent foundation. In California, that means the HCD 433A affidavit — and understanding it early can save weeks at closing.
California requires manufactured homes on permanent foundations to be certified with an HCD 433A affidavit. This document confirms the home is permanently affixed and will be taxed as real property.
Both FHA Title II and VA loans require the 433A to be recorded before closing. Without it, the home is classified as personal property — like a vehicle — and cannot be financed with a real-property mortgage.
The foundation must meet FHA or VA engineering standards: typically a perimeter block or pier system with anchoring, skirting, and proper drainage. A licensed engineer must inspect and certify the work.
In wildfire-prone Northern California counties (Shasta, Tehama, Butte), Cal Fire access and defensible space requirements may also influence site work and foundation planning.
Nestably coordinates 433A recording, foundation engineering, and lender inspections as part of the land + home package — so families don't have to chase permits alone.
The HCD 433A is a California Department of Housing and Community Development form that certifies a manufactured home has been installed on a permanent foundation according to state law. Once recorded with the county, the home is no longer considered personal property — it becomes real estate, just like a site-built house. This unlocks FHA Title II, VA, and conventional financing, and it allows the home to appreciate with the land.
Without the 433A, your home is legally a vehicle. You cannot get a 30-year fixed mortgage. You cannot deduct mortgage interest. And your home may depreciate instead of appreciate. The 433A is the single most important document in manufactured home financing.
Use this checklist to see whether FHA, VA, or both may be available to you.
| Requirement | FHA | VA |
|---|---|---|
| Active duty, veteran, or surviving spouse | ||
| Certificate of Eligibility available | ||
| Credit score 580 or higher | ||
| Steady, documentable income (2+ years) | ||
| Debt-to-income ratio under 50% | ||
| Purchasing home + land together | ||
| Can make a 3.5% down payment | ||
| Want $0 down if eligible | ||
| Prefer no monthly mortgage insurance | ||
| Land already owned outright |
Nestably is not a lender — but we help California families understand every financing path, connect with trusted lending partners, and build a land + home package that actually qualifies for the loan you want.
Get Free Loan & Land GuidanceEducational content only. Nestably does not originate loans. All program terms, rates, and eligibility are determined by licensed lenders and current federal guidelines.
