Is Connecticut’s Mobile Manufactured Home Loan Program Too Good To Be True?

If you’ve heard about Connecticut’s Mobile Manufactured Home Loan Program, your first reaction was probably the same as mine the first time I saw it:

A 3% interest rate, no mortgage insurance, and up to 30 years to pay it back on a home in a state-licensed mobile home park? It sounds almost too generous in a world where regular mortgage rates are still much higher. 

But this program is real, it’s backed by the Connecticut Housing Finance Authority (CHFA), and for the right buyer it can be a powerful tool. The key is understanding what it does and what it doesn’t do, so you can decide whether it fits your long-term plan.

Below, I’ll walk you through how the program works, who qualifies, some real-world pros and cons, and the questions I’d want my own clients to ask before jumping in.

Key takeaways

• The CHFA Mobile Manufactured Home Loan Program offers fixed 3% interest rates, loan amounts up to $150,000, and no mortgage insurance for qualifying homes in Connecticut state-licensed mobile home parks. 

• You must meet income limits (no more than 100% of area median income), use the home as your year-round primary residence, and not own any other property at the time of closing. 

• The home has to be in a state-licensed mobile home park, permanently affixed (no wheels or hitch), and you’ll still pay lot rent to the park in addition to your mortgage. 

• Funds are limited, and not every lender offers this program, so you need to work with a participating lender and move promptly once you find the right home. 

• For some buyers, this can be an affordable stepping stone into homeownership; for others, long-term goals or lifestyle might make a condo or small single-family home a better fit.

What exactly is the CHFA Mobile Manufactured Home Loan Program?

In simple terms, this is a special mortgage program through CHFA for people buying (or refinancing) a mobile/manufactured home in a Connecticut state-licensed mobile home park.

A few core facts straight from CHFA’s program sheet: 

• Interest rate: 3.00% fixed

• Loan amount: Minimum $2,000, maximum $150,000

• Loan term:

  • 15 or 30 years (for loan amounts over $5,000)

  • Up to 15 years (for loan amounts of $5,000 or less)

• Use: Purchase or refinance

• Seller contribution (purchase): Up to 6% of the price

• Refinance cash back: Up to $500 plus documented prepaid costs

• Escrows: Required for property taxes and homeowners insurance

One of the biggest eye-catchers is that there is no mortgage insurance requirement. On many low-down-payment loans, MI can add a noticeable amount to your monthly payment, so having a 3% rate and no MI is a big part of why this program feels “too good to be true.” 

However, there are strings attached — reasonable ones, but still strings — and that’s where we need to slow down and look closely.

Who is eligible (and who isn’t)?

CHFA built this program for a specific slice of buyers. To use it, you must check several boxes. 

Property rules

• The home must be located in a Connecticut state-licensed mobile home park (not on your own land).

• It must be a year-round, owner-occupied residence — no seasonal-only homes.

• It has to be affixed to the lot according to local zoning and park rules. Wheels, hitch, and axles must be removed.

So if your dream is to buy a piece of land in, say, Goshen or New Hartford and put a brand-new manufactured home on it, this particular program is not designed for that. It’s focused on homes in existing parks.

Borrower rules

• Prior homeowners are allowed, but you cannot own any other property when you close on this loan. That means no second homes, rentals, or commercial property.

• You must move in within 60 days of closing and occupy the home as your primary residence.

• Your household income cannot exceed 100% of area median income (AMI) as defined by Fannie Mae/Freddie Mac. CHFA posts the AMI limits on its website.

Remember that you still have to meet standard lending guidelines around credit, debts, and ability to repay. The program opens the door, but you still need to qualify on fundamentals.

Funding limits

There’s one more important line in the fine print:

“Due to a limited amount of funding for this program, approval depends on the availability of funding.” 

Translation: this isn’t an endless pool of money. If funds are allocated for the year, you might have to wait until more becomes available — another reason to talk to a participating lender early if you’re seriously considering this route.

Why this looks “too good to be true” (and why it isn’t)

Let’s stack this program up against a typical mobile/manufactured home loan in a park.

In many cases, financing a home in a park is harder and more expensive than a traditional single-family home:

• Fewer lenders will touch these loans.

• Rates are often higher than standard conventional mortgages.

• Terms can be shorter.

• Mortgage insurance or higher fees may apply.

So when you see:

• 3.00% fixed rate,

• up to 30 years,

• no mortgage insurance,

it feels like a unicorn. 

The “catch” isn’t that the program is shady. It’s that:

1. The scope is narrow – only for homes in CT state-licensed parks, with some specific requirements.

2. Income and occupancy are restricted – you must be under 100% AMI and use it as a primary residence with no other properties.

3. Funding is limited – if the allocated dollars are used up, you may have to wait.

In other words, it’s generous because it’s targeted. CHFA’s mission is to expand affordable housing options, and this is one way to do that for people who are comfortable living in a mobile home park but couldn’t otherwise get this kind of financing.

The parts buyers sometimes overlook

Even if the loan itself is attractive, you’re not just choosing a loan — you’re choosing a type of home and lifestyle. Here are the big real-world factors I walk through with people.

1. You own the home, not the land

In a state-licensed mobile home park, you typically own the home and rent the lot it sits on. That means:

• You’ll have monthly lot rent on top of your mortgage payment, taxes, and insurance.

• The park owner can often raise lot rent over time, subject to state rules and any lease terms.

• If the park is ever sold or re-developed, there can be disruption; in a worst-case scenario, residents may be asked to relocate.

This doesn’t mean it’s a bad choice, but it’s different from owning land in, say, Litchfield or Torrington.

2. Resale and appreciation can be different

Manufactured homes in parks sometimes behave more like vehicles in terms of value — they can depreciate over time, especially older units or those in parks with high fees or less-desirable locations.

The CHFA program lowers your financing cost, which helps your monthly payment. It doesn’t guarantee the home will rise in value at the same pace as a single-family on its own lot.

When I talk with clients, we often frame this as:

Is this a stepping stone to get out of renting and into something you can control, or are you hoping this is your forever home and main long-term investment?

Both answers are valid — it just changes how we evaluate the choice.

3. Park rules and lifestyle

Each park has its own rules:

• Age restrictions (55+ or all-ages)

• Pet policies

• Parking and guest rules

• Whether you can add decks, sheds, or fences

• Quiet hours and use of common areas

Before you fall in love with the low mortgage payment, it’s worth sitting with the park’s rules and making sure they match your lifestyle.

When this program might make sense

From a practical standpoint, the Mobile Manufactured Home Loan Program can make a lot of sense if:

• You’re comfortable with park living and like the idea of a smaller, lower-maintenance home.

• Your income fits under 100% AMI, and you don’t own other property.

• You want a predictable, fixed payment and are tired of rent increases.

• You’re realistic about appreciation and see this as a quality of life decision or a stepping stone rather than your main wealth-building strategy.

It can also fit well for:

• Retirees who want to downsize and keep monthly costs predictable.

• Single buyers or couples who find condos or single-family homes out of reach in current rates and prices.

• People who want to stay in a specific town or school district where single-family inventory is limited but there’s a good mobile home park.

When you might want to pause and consider other options

On the other hand, you might lean toward other paths if:

• You really want to own land and care a lot about future expansion, gardening, or outbuildings.

• Your long-term plan is heavily focused on property appreciation as your main wealth-building tool.

• The park you’re considering has very high lot rent, weak rules, or unclear long-term stability.

• Your income is close to or above the AMI limit, and you might qualify for other CHFA or conventional programs on a condo or single-family home instead.

Sometimes, when we run the numbers together, a buyer realizes that a small condo or townhouse with a different CHFA program might be a better fit. In other cases, this mobile home loan is the one that makes the math finally work.

How to evaluate this program step by step

Here’s a simple way to approach the decision if you’re curious about this loan:

Step 1: Decide whether park living fits your lifestyle

Visit the park in person if you can. Drive through at different times of day. Talk to residents if they’re willing. Read the park rules and lease carefully.

Ask yourself: Can I see myself here for at least 5–7 years?

Step 2: Run a full monthly budget

With your lender, build a realistic monthly payment estimate:

• Principal and interest at the 3% rate

• Taxes and homeowners insurance (remember, they’ll be escrowed)

• Lot rent

• Utilities and typical maintenance

Then compare that to what you’re paying in rent now and what you’d likely pay for a condo or small single-family home in the same region.

Step 3: Check your eligibility

Confirm with a participating lender that:

• Your income is under 100% area median income for your household size and area.

• You meet credit and debt-to-income guidelines.

• You don’t own any other property and can satisfy the owner-occupied primary residence requirement. 

Remember, funds are limited, so ask whether money is currently available for this program.

Step 4: Take homebuyer education if required (or even if it’s not)

If all borrowers are first-time homebuyers (meaning you haven’t owned a primary residence in the last 3 years), CHFA requires a homebuyer education class. Even if you’re not strictly required to take it, the class can be very helpful in understanding inspection, closing, and long-term budgeting. 

Step 5: Work with an agent who knows both CHFA and local parks

This is one of those situations where local experience really matters. An agent who’s familiar with:

• Which parks are state-licensed and CHFA-eligible

• What typical lot rents and rules look like

• Common inspection issues with older mobile homes

can help you avoid missteps and focus your time on parks that truly fit your needs.

Smart questions to ask before you commit

If you decide to explore this program further, here are some questions I’d encourage you to bring to your lender, park manager, and agent:

For the lender:

• Do you actively participate in the CHFA Mobile Manufactured Home Loan Program?

• Based on my income and debts, what’s a comfortable loan amount for me?

• What will my total monthly housing cost look like (including escrows and estimated lot rent)?

• How long is the rate locked, and what are my closing costs likely to be?

For the park manager:

• What is the current lot rent, and how often does it typically increase?

• What’s included in the lot rent (water, sewer, trash, snow removal, common areas)?

• Are there age restrictions, pet rules, or other lifestyle rules I should know about?

• How long is the lease term, and what happens if the park is sold in the future?

For your agent:

• How do prices in this park compare to similar homes or condos nearby?

• Are there common inspection issues or repairs that tend to come up?

• How easy is it to resell homes in this park when owners are ready to move on?

The goal isn’t to talk yourself out of an opportunity. It’s to walk into it with eyes wide open.

FAQs about Connecticut’s Mobile Manufactured Home Loan Program

1. Can I use this program to buy land and place a new manufactured home on it?

No. This particular CHFA program is specifically for mobile/manufactured homes located in a Connecticut state-licensed mobile home park, not homes on privately owned land. 

2. Do I have to be a first-time homebuyer?

You don’t have to be a first-time buyer, but you cannot own any other property (second home, rental, or commercial) at the time you close on the loan. Prior homeowners are eligible as long as they meet the other requirements. 

3. What happens if I move out and rent the home to someone else?

The program requires that all borrowers occupy the home as their principal residence within 60 days of closing and treat it as a year-round residence. Using it as a rental later can violate your loan terms, so if your circumstances change you’ll want to talk to your lender before making any moves. 

4. Can I refinance this loan later into a different mortgage?

Possibly. Whether refinancing makes sense will depend on market interest rates at that time, your credit/income, and what types of loans lenders are offering on mobile homes in parks. It’s something to revisit with a lender down the road if rates drop or your goals change.

5. Are there other CHFA programs if a mobile home in a park isn’t right for me?

Yes. CHFA offers a variety of mortgage options for single-family homes, condos, and some other property types, often with competitive rates and down-payment assistance for first-time buyers. If you like the idea of working with CHFA but aren’t sure about park living, talk with a lender about their broader menu of CHFA programs.

If you’re curious about whether this specific program might fit your situation in Northwest Connecticut or elsewhere in the state, the next step is simple: sit down with a participating lender and me to discuss CHFA and local parks. Together, you can run the numbers, look at actual homes, and decide whether this “too good to be true” program is actually the right, practical next step for you.

https://www.chfa.org/homebuyers-homeowners/homebuyers/homebuyers-homeowners/homebuyers/mobile-manufactured-home-loan-program/