MH Advantage®: Conventional Financing for Manufactured Homes
MH Advantage® is Fannie Mae’s conventional loan program for a specific type of manufactured home built to look and live like a traditional home constructed on-site. Eligible buyers of these homes can put down as little as 3%, access reduced mortgage rates, and pay lower mortgage insurance compared to standard manufactured housing loans.
MH Advantage® - At a Glance
- Buy a qualified manufactured home with as little as 3% down.
- Requires the MH Advantage® sticker to qualify.
- Avoids the 0.50% manufactured housing loan surcharge.
- Lower-cost mortgage insurance that can be canceled at 20% equity.
- Compatible with Community Seconds® for up to 105% CLTV.
MH Advantage® - Key Facts
| Requirement | MH Advantage® Program Details |
|---|---|
| Minimum Down Payment | 3% for primary residences |
| Maximum CLTV | Up to 105% with Community Seconds® assistance |
| Eligible Properties | Multi-section HUD-code manufactured homes with MH Advantage® sticker and required site features (e.g., garage, driveway) |
| Occupancy | Primary residences and second homes |
| Loan Terms | Fixed-rate mortgages only |
| MI Rules | Reduced mortgage insurance, cancellable at 20% equity |
| LLPA Surcharge | 0.50% manufactured housing surcharge waived |
Key Definitions
- Manufactured Housing
- A home built in a factory and transported to its site. Once installed on a permanent foundation, it qualifies as real property and may be financed with a mortgage.
- MH Advantage® Sticker
- A label placed by the manufacturer certifying the home meets Fannie Mae’s MH Advantage® design and construction standards. Without the sticker, the home is not eligible.
- Loan-Level Price Adjustment (LLPA)
- An extra fee charged on certain mortgages. Standard manufactured housing loans have a 0.50% LLPA surcharge, but MH Advantage® waives it.
- Site-Built Comparable
- A valuation method allowing appraisers to compare MH Advantage® homes to nearby traditional homes built on-site, which often supports higher appraised values.
What Is Manufactured Housing?
A manufactured home is a home built in a factory, transported to a site, and permanently installed on a foundation. Once installed, it qualifies as real property, much like a traditional home built directly on its lot.
Examples include:
- A three-bedroom home constructed in a factory and delivered in two sections, then placed on a permanent foundation.
- A single-story ranch-style home with a pitched roof, attached garage, and front porch that blends into a suburban neighborhood.
- A multi-section home with drywall interiors, upgraded insulation, and energy-efficient windows that feel indistinguishable from a site-built home.
The opposite of a manufactured home is a site-built home, which is a traditional home constructed on its lot by builders and contractors.
What Is the MH Advantage® Mortgage Program?
MH Advantage® is Fannie Mae’s conventional mortgage option for manufactured homes designed with features commonly found in traditional homes, such as pitched roofs with eaves, porches, garages, durable siding, and energy-efficient construction.
Unlike standard manufactured housing loans, MH Advantage® homes qualify for favorable mortgage terms, including low down payments, reduced interest rates, and lower-cost private mortgage insurance (PMI).
MH Advantage® Homes vs Regular Manufactured Homes
| Home Feature | MH Advantage® Homes | Regular Manufactured Homes |
|---|---|---|
| Roof Design | Steeper roof, eaves | Flat or low-pitch roof |
| Exterior | Durable siding, porches | Basic siding, skirting |
| Foundation | Lower, permanent foundation | Higher profile, visible piers |
| Garage/Carport | Attached garage or carport | Usually no garage |
| Interior | Drywall, energy-efficient features | Vinyl paneling |
| Driveway/Walkways | Paved driveway, sidewalks | Not always included |
Benefits of the MH Advantage® Mortgage
MH Advantage® is a more favorable and affordable way to mortgage manufactured homes that puts them on the same level as traditionally-built homes.
Lower Upfront Costs
MH Advantage® lets home buyers use a 3% down payment. This may help buyers purchase a home with less cash upfront compared to some other loan options, including a chattel loan.
Reduced Long-Term Expenses
MH Advantage® does not include the 0.50% loan-level price adjustment fee that applies to many standard manufactured housing loans. Private mortgage insurance costs may also be lower with MH Advantage®. These features may help reduce your monthly payment compared to some other manufactured home loans.
Better Appraisal Flexibility
Standard manufactured home appraisals usually require comparisons to other manufactured homes. With MH Advantage®, appraisers may also consider nearby site-built, traditional construction homes, which may support a different appraised value.
Conventional Loan Benefits
MH Advantage® gives home buyers access to conventional mortgage rates and terms. This may include lower interest rates, flexible repayment options, and the option to refinance or sell the home with fewer restrictions than some personal property loans. Actual terms depend on lender guidelines and borrower qualifications.
Down Payment Assistance Integration
MH Advantage® is compatible with Community Seconds®, which may help you cover closing costs or reduce the amount of cash you need up front, depending on the program and lender guidelines.
About The MH Advantage® Sticker: What It Means and Why It Matters
The MH Advantage® sticker is what makes a manufactured home eligible for MH Advantage® financing. No sticker = no eligibility.
The Lifecycle of a MH Advantage® Sticker
An MH Advantage® sticker is proof that the home was built by an approved manufacturer and meets Fannie Mae’s higher design and construction standards.
- Only approved manufacturers with a Fannie Mae agreement issue the sticker.
- Sticker is applied at the factory, usually near the HUD Data Plate, which is often in a kitchen cabinet or bedroom closet.
- Sticker proves the home meets MH Advantage standards.
- If removed by any party, the home loses MH Advantage eligibility permanently.
- Manufacturers track stickers and report unused or removed ones to Fannie Mae each year.
As part of a mortgage approval, appraisers photograph the MH Advantage® sticker, HUD Data Plate, and HUD Certification Label. If the sticker is missing, the home cannot qualify.
📊 Key Statistic
MH Advantage® vs Standard Manufactured Housing Loans
| Feature | MH Advantage® | Standard Manufactured Housing Loan |
|---|---|---|
| Minimum Down Payment | 3% | Often 5% or higher |
| LLPA Surcharge | Waived | 0.50% surcharge applies |
| Mortgage Insurance (MI) | Reduced rates, cancellable at 20% equity | Standard MI, often more expensive |
| Appraisal Flexibility | Can use site-built comparables | Limited to manufactured home comps |
| Maximum CLTV | 105% (with Community Seconds®) | 97% |
| Eligible Homes | Must display MH Advantage® sticker | Any HUD-code manufactured home |
What To Do If...
I want to buy a manufactured home without the MH Advantage® sticker
You can still use a standard manufactured housing loan, but you won’t get MH Advantage® benefits like waived surcharges and reduced MI. FHA, VA, and USDA loans also allow manufactured homes if they meet HUD code and foundation requirements.
I need down payment help with MH Advantage®
Pair MH Advantage® with Community Seconds® to finance up to 105% CLTV and cover down payment, closing costs, or even renovations.
I'm not sure if a home qualifies
Ask the seller or retailer to confirm whether the home carries the MH Advantage® sticker. Without it, the home is not eligible for MH Advantage® financing.
MH Advantage®: Common Limiting Beliefs
“Manufactured homes don’t qualify for the same loans as regular houses.”
They can — if the home meets MH Advantage® standards. That means access to conventional mortgages with competitive rates and terms.
“The appraisal will drag down my home’s value.”
With MH Advantage®, appraisers aren’t limited to other manufactured homes. They can compare your home to nearby traditional houses, which often supports stronger valuations.
“Mortgage insurance will make my payment too high.”
Not here. MH Advantage® lowers MI costs compared to standard manufactured housing loans, and the coverage can be canceled once you build enough equity.
“People will be able to tell my house is manufactured.”
MH Advantage® homes are designed with features like garages, porches, and pitched roofs — the same details you’d expect to see in nearby houses. They’re made to fit right into a neighborhood.
“I’ll need a big down payment to qualify.”
You don’t. Buyers can put as little as 3% down, and some pair MH Advantage® with Community Seconds® to cover even more upfront costs.
Frequently Asked Questions About MH Advantage®
Find answers to common questions about MH Advantage® eligibility, sticker requirements, and manufactured home financing.
What is MH Advantage®?
MH Advantage® is Fannie Mae’s mortgage program for manufactured homes with traditional design features. Eligible homes must display an MH Advantage® sticker provided by the manufacturer.
What makes a manufactured home MH Advantage® eligible?
The home must be built to HUD code, meet design requirements such as a pitched roof, attached garage or carport, and energy efficiency standards, and include an MH Advantage® sticker inside the home.
How much down payment is required for MH Advantage®?
As little as 3% down for primary residences. Combined loan-to-value (CLTV) up to 105% is allowed with Community Seconds® assistance.
Where do I find the MH Advantage® sticker?
The sticker is placed by the manufacturer, usually inside a kitchen cabinet or bedroom closet near the HUD Data Plate. It indicates the home was built to MH Advantage® specifications.
How does MH Advantage® differ from a standard manufactured housing loan?
It waives the standard 0.50% LLPA surcharge, offers lower-cost mortgage insurance, allows higher LTV ratios, and lets appraisers use traditional site-built comparables.
Are investment properties eligible for MH Advantage®?
No. MH Advantage® is available for primary residences and some second homes only.
