Choosing a loan term is a balancing act between low monthly payments and the total interest you’ll pay over the life of the loan. In 2026, there are two distinct paths for borrowers.

1. The 30-Year Standard (Real Property Loans)

If you own the land and the home is permanently attached to a foundation, it is classified as Real Property. In this scenario, your loan looks exactly like a traditional mortgage.

• Average Term: 30 Years.

• Other Options: 15-year and 20-year terms are also common for those who want to build equity faster.

• Benefit: These loans (FHA, VA, and Conventional) offer the lowest interest rates and the longest time to pay back the balance, making a $100,000 to $200,000 home very affordable month-to-month.

2. The 10 to 20-Year Window (Chattel Loans)

If you are placing your home in a manufactured home community (leased land) or if the home is not on a permanent foundation, it is financed as Personal Property (a "Chattel" loan).

• Average Term: 15 to 20 Years.

• The Trend: While 10-year loans were popular in the past, the rising cost of units in 2026 has pushed the average buyer toward 20-year terms to keep monthly payments manageable.

• Trade-off: Because the term is shorter and the interest rate is higher than a traditional mortgage, your monthly payment might be higher than you'd expect for the price of the home.

Buyer Poll: Which Term Are People Choosing?