Can you get a mortgage on a park Home?

Many people think of buying a park home for a relaxing lifestyle. But, when it comes to financing the park home, they wonder if they can get a mortgage on a park home. So in this article, we clear your doubts about getting a mortgage on a park home.

Key Takeaways

  • Traditional mortgages are not available for park homes.
  • Park homes can be financed through other options.
  • Eligibility criteria for park home financing options vary and depend on several factors.
Can you get a mortgage on a park Home

Can you get a mortgage on a park home?

Park homes are not considered “real property” as they are not built on a permanent foundation. So, traditional mortgages are not available for park homes. Still, you can get a mortgage on a park home through specialist lander. These lenders offer special loans for park homes. You can get a special lander here.

Park home mortgages are typically secured against the value of the park home. It does not include the land on which it is situated. This means the loan amount is based on the value of the park home, rather than the value of the land. Also, the loan term is usually shorter than a traditional mortgage.

Things to consider before taking special park home mortgages

Park home mortgages differ from traditional mortgages in several ways. We cover some of these in the following.

Higher interest rates

Park home mortgages usually have higher interest rates than traditional mortgages. Lenders consider park homes higher risk because the park homeowners don’t own the land.

Lower loan-to-value ratios

The loan-to-value ratio (LTV) is the amount of the loan compared to the value of the property. Park home mortgages usually offer lower LTV ratios than traditional mortgages. It typically ranges from 50% to 70% of the property.

Specialist lenders

Park home mortgages are not as widely available as traditional mortgages. They are only offered by a limited number of lenders. This means you have less choice when it comes to finding a lender.

Shorter loan terms

Park home mortgages usually have shorter loan terms than traditional mortgages. It ranges from 5 to 15 years. This means you will need to make higher monthly payments to pay off the loan in a shorter time.

Is it possible to get a mortgage on a park home?

Eligibility criteria for special park home mortgages

Park homes are a unique type of property. Therefore, they have different eligibility criteria for mortgaging. Here are some of the key factors that lenders will check.

Income Report

As with any mortgage, lenders will want to see your income report. It assures them that you can afford the repayments. However, the income requirements for a park home mortgage may differ from a traditional mortgage.

Credit Score

Your credit score is another important factor that lenders will consider. A good credit score of 650+ increases your chances of getting a mortgage.

Age Restrictions

Some lenders have age restrictions to give mortgages for a park home. They only accept applicants who are over a certain age.


Now you have a full view of getting a mortgage for park homes. Although traditional mortgages are not an option for park homes, specialist lenders can still provide mortgages. But you need to search hard to find a specialist lender. Also, you should check interest rates, and loan amounts before taking the mortgage. Getting professional guidance from a solicitor can help you navigate the right decision. 

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Are interest rates higher for park home mortgages?

Yes, the interest rates for park home mortgages are higher than traditional mortgages.

How can I improve my chances of mortgage approval for a park home?

By maintaining a good credit score. Also buying the park home from a reputed manufactured company and situated in a good park.

How can I buy a park home?

You can buy your park home in three different ways
1. Buying with savings or cash
2. Using equity from a previous property
3. Taking out a specialist park home mortgage

Can first time buyers purchase a park home?

Yes, first-time buyers can purchase a park home.

Can a park home be considered a primary residence?

Yes, a park home can be considered a primary residence.

Disclaimer: All the information provide on this article only for informational purposes.  Please do your own research before taking any financial decisions.