Cavco Industries is a manufacturer and finance company, not a lender you contact directly
Cavco Industries builds mobile homes and also finances them through its own lending division. If you are shopping for a mobile home, you may encounter Cavco as either the builder of the unit itself or as the company offering to finance your purchase. Cavco does not work like a traditional bank — you do not call Cavco to explore for a loan. Instead, dealers who sell Cavco-built homes can arrange financing through Cavco's lending arm, or you can bring your own lender to the table.
Understanding Cavco's role matters because it shapes what financing options you have and what terms might be available. Cavco-built homes are sold through independent dealers across the country, and those dealers decide whether to offer Cavco financing, financing from another source, or both. Your path to a loan depends on which dealer you work with and what they have arranged.
Key Takeaways
- Cavco Industries manufactures mobile homes and also operates a lending division that finances purchases of Cavco-built units through authorized dealers.
- You do not explore directly to Cavco for financing; instead, the dealer you buy from arranges the loan through Cavco or another lender.
- Cavco financing is one option among many — you can also bring a bank, credit union, or other lender to your purchase if the dealer permits it.
- The terms, interest rates, and down payment requirements for Cavco financing vary by dealer, credit profile, and the specific loan program.
How Cavco financing works through dealers
When you buy a mobile home from a dealer that carries Cavco units, the dealer's sales team can present Cavco financing as an option at the point of sale. Cavco's lending division underwrites and funds these loans, but the dealer is the intermediary — they submit your information, and Cavco's underwriting team reviews it. The dealer then handles the paperwork and closing on their end.
This arrangement means the dealer has already established a relationship with Cavco and knows what documentation Cavco requires and how quickly they can fund. Some dealers may offer Cavco financing exclusively, while others work with multiple lenders and can present you with choices. If you have your own lender lined up — a bank, credit union, or mortgage company — many dealers will accept that as well, though some may have preferred lender arrangements that come with faster processing.
The loan itself is a chattel mortgage or personal property loan if the mobile home sits on rented land, or a traditional mortgage if you own the land beneath it. Cavco financing can cover either structure, but the terms and rates differ. A chattel loan typically carries a higher interest rate and shorter term than a land-and-home mortgage because the lender's security is weaker.
Cavco financing versus bringing your own lender
Choosing between Cavco financing and an outside lender comes down to convenience, rate comparison, and what the dealer permits. Cavco financing is convenient because the dealer already has the underwriting relationship in place — they know the timeline, the documentation Cavco needs, and can often move faster than a new lender would. If you have good credit and the dealer offers competitive rates, this can be the smoothest path.
Bringing your own lender gives you more control and may result in a lower rate, especially if you have an existing relationship with a bank or credit union. Many credit unions offer mobile home loans at rates lower than captive finance companies like Cavco. However, you will need to confirm the dealer will accept an outside lender, and you will need to move faster — your lender will require an appraisal and full underwriting before you can close, which takes time the dealer may not want to wait.
Some dealers require you to use their preferred lender or Cavco financing as a condition of the sale. Others are flexible. Ask the dealer upfront whether you can bring your own lender, and if so, what timeline they need you to work within. If you are comparing rates, get a rate quote from Cavco (through the dealer) and from at least one outside lender before deciding.
What documentation Cavco financing typically requires
Cavco's underwriting process is similar to other lenders but moves through the dealer. You will need to provide proof of income (recent pay stubs, tax returns, or bank statements), identification, and information about your employment and housing history. If you are self-employed, Cavco will want to see two years of tax returns and possibly profit-and-loss statements.
You will also need to authorize a credit check, and Cavco will pull your credit report to assess your risk. The specific credit score threshold varies by loan program and down payment amount, but Cavco generally works with borrowers across a range of credit profiles — they are not a prime lender only. If you have past credit issues, be prepared to explain them; the dealer's finance manager can help frame your situation for the underwriter.
The mobile home itself will be appraised to confirm its value. Cavco may use an in-house appraiser or an independent one, depending on the loan amount and the dealer's location. The appraisal protects the lender by ensuring the home's value supports the loan amount. If the appraisal comes in lower than the purchase price, you may need to put down more money or renegotiate the price.
Interest rates and terms for Cavco loans
Cavco financing rates are not published centrally — they vary by dealer, loan program, credit score, down payment, and whether the home sits on owned or rented land. A borrower with a 750 credit score and 20 percent down will receive a different rate than someone with a 600 score and 5 percent down. The dealer's finance manager can provide a rate quote once you have submitted your information and authorized a credit check.
Loan terms for Cavco financing typically range from 10 to 20 years, though some programs offer shorter or longer terms. Shorter terms mean higher monthly payments but less interest paid overall. Longer terms lower the monthly payment but increase the total cost of borrowing. Cavco also offers different loan products — some with fixed rates, some with adjustable rates — and the dealer will explain which ones are available for your situation.
Down payment requirements also vary. Some Cavco programs require as little as 5 percent down, while others ask for 10, 15, or 20 percent. A larger down payment typically results in a lower interest rate and a smaller monthly payment. Ask the dealer what down payment options are available and how each affects your rate.
When Cavco financing may not be the right fit
Cavco financing works well if you are buying a Cavco-built home from a dealer that offers it and you want a streamlined process. It may not be the right fit if you have access to a credit union loan at a significantly lower rate, if you want to shop rates across multiple lenders, or if you are buying a used mobile home from a private seller (Cavco finances new and dealer-inventory homes, not private resales).
If you are buying a used home or a home built by another manufacturer, Cavco financing is not an option. You will need to work with a bank, credit union, or specialized mobile home lender. Some credit unions have mobile home lending programs with competitive rates and flexible terms, and these are worth exploring if you have membership access.
If you have very poor credit or a recent bankruptcy, Cavco may still work with you through a dealer, but the rate will reflect the higher risk. In that case, comparing Cavco's offer to other lenders that specialize in higher-risk borrowers can help you find the best available terms.
How to get a rate quote from Cavco
To receive a rate quote, you work through the dealer. Visit a dealer that sells Cavco homes, tell the sales team you are interested in learning about financing options, and ask to speak with the finance manager. The finance manager will collect basic information: your income, employment, credit authorization, and the details of the home you want to buy (or are considering).
The dealer will submit this information to Cavco's underwriting team, and Cavco will return a rate quote within one to three business days, depending on the dealer's volume and how complete your process is. The quote will show the interest rate, loan term options, estimated monthly payment, and any fees. This quote is usually good for a set period — often 30 to 60 days — so you know what rate you are locking in if you move forward.
If you want to compare Cavco's rate to an outside lender, contact a bank or credit union directly and ask for a mobile home loan rate quote. Provide the same information — purchase price, down payment, loan term, and whether the home will sit on owned or rented land — so the quotes are comparable. Then decide which lender offers the best combination of rate, term, and customer service for your situation.
Frequently Asked Questions
Can I use Cavco financing if I am buying a used mobile home?
No. Cavco finances new Cavco-built homes and homes from dealer inventory. If you are buying a used home from a private seller or a home built by another manufacturer, you will need to work with a bank, credit union, or other lender that offers used mobile home financing.
What happens if my credit score is very low?
Cavco works with borrowers across a range of credit profiles, but a lower score will result in a higher interest rate and may require a larger down payment. Ask the dealer's finance manager what programs are available for your credit situation and what rate you can expect. Comparing this to other lenders that work with lower-credit borrowers can help you find your best option.
Can I pay off a Cavco loan early without a penalty?
Most Cavco loans do not carry a prepayment penalty, but this varies by loan program and the specific terms of your note. Ask the dealer to confirm whether your loan allows early payoff without penalty before you sign. This information will be in your loan documents.
What if the dealer will not let me bring my own lender?
Some dealers require you to use their preferred lender or Cavco financing. If that is the case, ask whether you can refinance with another lender after closing — most loans allow this after 6 to 12 months. You can then shop for a better rate once the home is in your name and the title is clear.
How long does Cavco financing take from process to closing?
The timeline depends on how complete your process is and how busy Cavco's underwriting team is, but most loans close within 10 to 21 days. If you are missing documentation or if the appraisal takes longer than expected, closing may be delayed. Ask the dealer for an estimated timeline when you submit your process.