The manufactured or the modular homes have more strict terms and conditions for the loans compared to conventional home loan or loans for the land. Therefore, to be able to get a modular home on credit, you need to have an excellent credit report. Also, you need to have a credit score in the higher part of the credit score range.

Credit Score For Modular Home

Your credit score is calculated by the credit agencies in the country. In FICO, the credit scores can range from 300 to 850. The credit score of 300 is the lowest you can get, and the credit score of 850 is the upper limit. If you have a higher credit score, it shows that there is the little probability that you will default on your loan payments. However, if you have a low credit score, you will be required to pay higher interest rates on the loan payments. Also, the terms and conditions will also be very strict for you.

{wbamp-show start} {wbamp-show end}

For an excellent deal for the modular home, you need to have a score in the range of or above 680. If you have lower than that credit rating, you should check with FHA, VA and the USDA loans.

Explanation of credit score ranges

Explanation Of Credit Score Ranges

It is important to know the category that you fall into when it comes to credit score for you to be aware. The range of a credit score can go from 300 to 850. Always remember that the higher your score, the higher the chances of you to qualify for a loan. There will also be instances where a financing company is okay with 650 scores, while the other is fine with a 750 score. It will all depend on the lender itself.

A lender or a bank will check your credit score if you qualify for the application that you are requesting. Here are some of the credit score ranges that you should know.

{wbamp-show start} {wbamp-show end}

Bad credit score

People with a credit score below 579 is known as high risks. Foreclosures, poor payment history, and bankruptcies are the reasons why people fall into this category.

Good credit score

A good credit score ranges from 680 to 719. People with this credit score can expect approvals and interest rates that are better.

Very Good

A very good credit score ranges from 720 to 799. People with this credit score is known to be small risks, and they often get loan amounts that are higher than usual.


An excellent score ranges from 800 and above. Financial freedom is expected to people with this score.

How are credit scores calculated?

How Are Credit Scores Calculated

The weight of each of the five categories are; 30% of amount owned, 10% is for the new credit, 15% accounts for the length of credit history, 10% is the credit mix and the last 35% accounts for the person's payment history.

{wbamp-show start} {wbamp-show end}

The FICO score takes into consideration positive as well as negative aspects of the credit report. The percentage or the weight of any of the categories mentioned above may differ from a person to another depending upon the information available in the credit report.

The FICO score takes all of the information from your credit report. However, the banks or any other lending institution might look at your income, type of credit and employment history when you apply for a loan or mortgage.

Once a certain lender asks for a client's credit report, they can also ask for the Fico score. Other sources say that your Fico score will include 35% of your payment history, 30% of your credit utilization, and 15% as to how long have you been borrowing.

Modular home financing options based on credit score

Modular Home Financing Option

If you are looking to get a loan from a bank or any other financial lending institution, you will be required to show a good level of creditworthiness and a stable job and income. The users of such homes may be assumed to have some financial problems.

{wbamp-show start} {wbamp-show end}

The banks and other lending institutions do not want to take too much risk therefore, they might have a good look at your credit score and your credit performance in the last 12 months. If you have a credit score over the mark of 700, you should feel comfortable that you will get your loan request accepted.

{wbamp-show start}{wbamp-show end}