What financing method is commonly used to finance a manufactured home?

FHA loans and conventional mortgages are commonly used financing methods for manufactured homes because they provide structured loans specifically designed for home purchasing. These financing options offer consumers access to lower interest rates and longer repayment terms, making them more affordable over time. FHA loans, in particular, are significant because they cater to low-to-moderate-income borrowers who may have lower credit scores, allowing a wider array of individuals to qualify for homeownership.

In contrast, cash transactions exclusively limit the pool of potential buyers to those who can afford to pay the entire price upfront, which is not practical for most people. Relying on credit card payments is also not typical for purchasing a manufactured home due to credit limits and high-interest rates associated with credit cards. Lastly, personal loans may offer funding, but they don't usually have the favorable terms or secured interest rates that mortgages provide, making them less desirable for financing a manufactured home.