Modular vs. manufactured homes
Lenders draw a hard line between these two, and it matters a lot for financing. A modular home is built in sections at a factory and then assembled on a permanent foundation on your land — structurally, it's treated like any other house. A manufactured or mobile home is built on a permanent steel chassis and is classified as personal property rather than real property, which changes what kind of financing is available.
The three-factor test lenders use
For a modular home to qualify for a conventional mortgage — the same kind used for a site-built home — it typically needs to meet three conditions at once:
- CSA A277 certification. This is third-party inspection confirming the home meets National Building Code standards. (Homes certified under CSA Z240 instead — the standard for manufactured homes — generally won't qualify for conventional mortgages.)
- A permanent foundation. Think concrete basement, crawlspace, or engineered footings — not blocks or temporary supports. Depending on your site, foundation work commonly runs anywhere from roughly $20,000 to $60,000 or more.
- Fee simple title. The home and land need to be registered together as one property. Homes on a separate "chattel" title face different, typically more expensive financing.
When all three line up
If your modular home checks all three boxes, it's treated just like a site-built home for financing purposes — that means access to the same major lenders, standard qualification criteria, and mortgage-insured options with as little as 5% down.
Budgeting for the whole project
The purchase price of the home itself is only one piece. Land, foundation work, site services (things like a well or septic system), and delivery/setup all need their own line items in your budget. As a general rule of thumb, it's worth having roughly a third of your total project cost available as cash or equity going in.
How the process typically works
Most lenders use a construction mortgage that pays out in stages as the home is built and set on-site. Once the home is complete and an occupancy permit is issued, that construction mortgage converts into a standard residential mortgage.
If you don't meet all three conditions
Missing even one of the three factors above usually means you're looking at chattel financing instead of a conventional mortgage — which generally means a larger down payment (often in the 20–35% range) and higher interest rates.