For many first-time homebuyers, finding the right home at the right price can feel out of reach, but modular homes offer a real alternative. With more space, a yard and the freedom to live how you want, modular homes offer a smarter, more flexible path to ownership.
Mortgage Financing for Modular Homes: A Simple Guide
Modular Financing Made Easy
At Jandel Homes, we’ve helped homeowners across Western Canada for over 50 years. One concern we often hear about is getting a mortgage for a modular or mobile home is difficult or confusing. The truth? It’s more straightforward than most people think, especially when you have the right team to guide you.
We specialize in true modular homes and can walk you through the ins and outs of financing – what to expect and how to avoid common roadblocks. While every situation is different and can depend on the type of home, land and lender, you don’t have to figure it out alone.
If you’re curious about what’s possible, we’re here to help. Reach out to one of our Housing Consultants for straightforward answers and honest advice about making homeownership a reality.
Can You Get a Mortgage on a Modular Home?
It’s true that getting a mortgage on a mobile or manufactured home used to be difficult. That reputation came from how these homes were once built with lighter construction, movable frames, and lesser building code (often CSA Z240). Because of that, many lenders saw them as temporary, so long-term mortgages weren’t easy to get.
But modular homes are a different story. At Jandel Homes, our homes are built to CSA A277 standards – the same national building code used for traditional houses across Canada. They’re built indoors, delivered to site and installed on a permanent foundation. Once complete, they’re treated just like any site-built home, for mortgage lenders, insurance providers and building inspectors.
Why does this matter? Because the way your home is built plays a big role in your financing options. Modular homes built to A277 standards are often treated like traditional homes by lenders – especially if you’re placing the home on land you own – which can make qualifying for a mortgage much easier.
Land Ownership Matters
If you own the land your modular home will sit on, most lenders treat it like any other mortgage. Straightforward and simple.
Don’t own land? That’s okay, many buyers place their homes in land-lease communities or family owned property. While mortgages are still possible in those cases, lenders will want to review your lease. We work with lenders who understand these situations and can help set you up with a lease structure that works.
How You’ll Use the Home Also Affects Your Mortgage
If you’re planning to live in your modular home full-time, great news, you may qualify for a mortgage with as little as 5% down. Homes built to CSA A277 standards, like the ones at Jandel, are eligible for CMHC mortgage insurance, which can make homeownership even more accessible.
Looking at a second home, vacation property, or rental? That’s still an option too – it just usually requires a higher down payment and a slightly different approach.
Every situation is unique, and we’re here to help you figure out what’s possible. If you’re not sure where you fit, just reach out! Our team can walk you through your options and connect you with trusted lenders who understand modular homes.
The Bottom Line
Getting a mortgage for a modular home isn’t complicated, but it is different. Here’s what really matters:
- How your home is built: Modular homes built to CSA A277 standards qualify for traditional mortgages.
- Land ownership: Owning the land simplifies financing, but leased land is still possible with the right terms.
- Use of the home: Primary residences have lower down payment requirements.
- CMHC insurance: Available for modular homes built to the right standard, but not available for homes on wheels or used as rentals. We have a full breakdown of the rules and how CMHC insurance works on our blog here.
The Smart Way to Finance Your Modular Home
At Jandel Homes, we’ve helped thousands of families navigate the mortgage process. We can connect you with preferred lenders, explain your financing options and walk you through every step. Mortgage approvals typically come through within one to two weeks, and we’re always here to answer your questions – no pressure, just support.
Visit us in Edmonton or Grande Prairie to start your home buying journey. We’re here to help make homeownership easier and a lot more exciting.
More Helpful Resources
We’ve compiled the information below help you make better informed decisions when shopping for a mortgage and examining how much you can afford.