Can an LLC buy a manufactured home in Texas?

Yes. A Texas LLC can hold title to a manufactured home by listing the LLC as the owner on the TDHCA Statement of Ownership. The main trade-off is that most consumer manufactured home loans (FHA, VA, most chattel) are not available to an LLC, so purchases are typically all-cash or through commercial/portfolio lenders.

Does an LLC protect me from lawsuits over a rental manufactured home?

Generally yes, if the LLC is properly formed, capitalized, and operated with respected formalities. Commingling funds, signing contracts personally, or failing to maintain records can let a plaintiff pierce the corporate veil. Strong LLC protection also requires landlord liability insurance and written leases signed in the LLC's name.

How do I put a manufactured home into an LLC name?

Either purchase it directly in the LLC name, or file a TDHCA Statement of Ownership transfer from personal name to the LLC. The transfer requires an Application for Statement of Ownership (Form 1023), the $55 issuance fee, a signed warranty or transfer document, and any lien releases. That $55 is per application, not per section. Processing is 15 working days once TDHCA has a complete file, or about five working days if you add the $55 Priority Handling fee.

What are the tax implications of owning a Texas manufactured home in an LLC?

A single-member LLC is a pass-through for federal taxes, so rental income and deductions flow to the owner's Schedule E. A multi-member LLC files Form 1065. Texas has no state income tax. Property taxes apply normally, and the LLC cannot claim a homestead exemption because an LLC cannot occupy the home as a primary residence.

Can I get a mortgage for a manufactured home in an LLC name?

Consumer mortgage programs (FHA Title I/II, VA, Fannie Mae MH Advantage) require an individual borrower and will not lend to an LLC. Your options are commercial financing, portfolio lenders (small banks and credit unions), DSCR loans, seller financing, or all-cash. Rates run 1 to 3 percentage points higher than consumer loans, and down payments are typically 20 to 30 percent.

Buying Guide

Buying a Manufactured Home With an LLC in Texas: Pros and Cons

April 9, 2026

For Texas investors, buying a manufactured home through a limited liability company (LLC) is a common move to shield personal assets from tenant lawsuits, simplify bookkeeping, and separate real estate from day-job income. It is legal, relatively cheap to set up, and straightforward with TDHCA. The catch: LLC ownership closes the door on most consumer manufactured home loan programs, which changes how you finance the deal. This guide walks through when an LLC makes sense, how to title correctly, and the financing reality.

Quick Answer: A Texas LLC can own a manufactured home by listing the LLC on the TDHCA Statement of Ownership. LLCs work well for buy-and-hold rentals, asset protection, and multi-partner deals. They are wrong for primary residences (no homestead exemption) and for buyers relying on FHA, VA, or standard chattel loans, which require an individual borrower. Plan on all-cash or commercial financing.

Why Investors Use LLCs for Manufactured Home Purchases

Real estate investors reach for an LLC for a handful of consistent reasons:

Liability protection: If a tenant injures themselves and sues, only the LLC's assets are normally exposed, not the owner's personal home, cars, or savings. Properly maintained, the LLC shields the owner's other properties held in separate entities.
Separation of business and personal finances: Easier bookkeeping, cleaner tax returns, and clearer audit trail. A dedicated LLC bank account is a big part of the separation.
Partner structures: LLCs accommodate multiple members with a written operating agreement specifying capital contributions, profit splits, and exit rules.
Estate planning: Transferring membership interests in an LLC can be simpler than transferring title to the underlying property.
Privacy: A well-structured Texas LLC shields the owner's name from public property records in some cases (though the Statement of Ownership still shows the LLC name).
Asset protection across a portfolio: Experienced investors often hold each rental in its own LLC, so a lawsuit over one property cannot reach the others.

If you are thinking of building a rental portfolio, our manufactured home investing in Texas guide covers strategy, returns, and the Texas SAFE Act limits on owner financing.

The Financing Trade-Off

This is the part most beginners underestimate. Consumer mortgage programs are built for individuals, not entities. Here is how the lending landscape looks.

Loan type	Available to LLC?	Typical terms
FHA Title I (chattel) / Title II	No	N/A
VA manufactured home loan	No	N/A
Fannie Mae MH Advantage / Freddie CHOICEHome	No	N/A
Consumer chattel (21st Mortgage, CMG, etc.)	Rarely	N/A
Commercial real estate loan (local bank)	Yes	5 to 7 year term, 15 to 20 year amortization, 25 to 35 percent down
DSCR loan (non-QM)	Yes	30 year term, 20 to 25 percent down, rate 1 to 3 pts above conventional
Private/hard money	Yes	6 to 24 month term, 8 to 12 percent rate, 20 to 35 percent down
Portfolio loan from community bank	Yes	Varies; often 20 year amortization, flexible
Seller financing	Yes	Varies; watch SAFE Act limits
All cash	Yes	N/A

For chattel-only homes (in a park or on leased land), commercial lending is especially scarce. Most LLC purchases in parks end up being all-cash or seller-financed. On owned land with a permanent foundation, a DSCR or portfolio loan is usually available. For a broader look at financing options before layering on the LLC complication, read our chattel loans guide.

Titling a Manufactured Home in an LLC on the TDHCA Statement of Ownership

In Texas, the Statement of Ownership (SOL) issued by TDHCA functions as the title document. Listing an LLC as owner is routine and cheap, but the paperwork has to be exactly right.

Form the LLC first: File a Certificate of Formation with the Texas Secretary of State. $300 state fee. Obtain an EIN from the IRS for free. Open a dedicated bank account.
Purchase in the LLC name: The purchase contract names the LLC as buyer. The seller signs the warranty deed or bill of sale to the LLC.
File SOL application: Submit the Application for Statement of Ownership, TDHCA Form 1023, signed by the LLC's authorized member or manager. Include the bill of sale, lien releases, and the $55 issuance fee. The fee is charged per application, not per section, so a double-wide costs the same $55 as a single-wide.
Include proof of LLC authority: TDHCA may request a copy of the Certificate of Formation or an operating agreement showing who is authorized to sign.
Allow 15 working days: That is TDHCA's processing time from the date it receives a complete application, and it does not include mail time either direction. Priority Handling costs an additional $55 and gets the application reviewed within five working days.

To transfer an existing home from an individual to an LLC, the same SOL process applies but the grantor is the individual owner signing over to the LLC. Our Statement of Ownership guide walks through the broader process and common rejection reasons.

Property Taxes and the Homestead Exemption

Texas property tax rules treat LLC-owned homes differently in one critical way: an LLC cannot claim a homestead exemption. The homestead exemption requires the property to be the owner's primary residence, and an LLC is not a natural person. That means:

No $100,000 school district homestead exemption
No 10 percent annual appraisal cap that applies to homesteads
No over-65 or disability tax freeze
Full exposure to market-driven appraisal increases

For an investor holding a rental, none of this is a surprise, because rentals never qualify for homestead anyway. But if you live in the home yourself and title it in an LLC for "protection," you forfeit thousands of dollars a year in property tax benefits. Never put a primary residence in an LLC without professional advice. For broader context on property tax rules, see the Texas Comptroller's property tax page.

Federal Tax Treatment

A Texas LLC is a creature of state law; the IRS decides tax treatment separately.

Single-member LLC: Default is a "disregarded entity." All rental income, expenses, and depreciation flow to Schedule E of the owner's Form 1040. No separate federal return required (but do file Texas franchise tax reports).
Multi-member LLC: Default is a partnership. Files Form 1065 and issues K-1s to members.
Elective S-corp status: Available by filing Form 2553. Uncommon for passive rentals because S-corps complicate basis, distributions, and self-employment tax treatment.

LLC owners can still deduct all the standard landlord expenses: mortgage interest, depreciation (27.5-year schedule for the home, 15-year for land improvements), insurance, repairs, property tax, and travel to the property. See IRS pass-through entity guidance for the fundamentals.

Texas Franchise Tax and Annual Compliance

Texas LLCs are subject to the state's franchise tax, but most small landlords owe $0 because of the no-tax-due threshold ($2.47 million in annual revenue as of 2024, indexed upward). You still must file a Public Information Report (PIR) and a No Tax Due Report annually. Missing filings can lead to the LLC losing its right to transact business, which defeats the whole point of the liability protection.

Plan for about $200 to $400 annually in compliance costs: registered agent fees if you use a service, franchise tax filings, and any bookkeeping. Texas charges no state income tax, which is a real advantage for out-of-state investors coming from California, New York, or Illinois. For the state-level rules that apply to your manufactured home investments, see our Texas manufactured home regulations guide.

When an LLC Does Not Make Sense

LLCs are not universal. Skip the entity if any of these apply:

The home will be your primary residence (homestead exemption loss)
You plan to use FHA, VA, or standard chattel financing (won't qualify)
You're buying a single-wide under $30,000 and the LLC setup and annual compliance eat the margin
You have not set up proper landlord insurance (LLC alone is not enough)
You plan to sign personal guarantees anyway, which partially defeats the protection

Red Flags and Common Mistakes

The biggest LLC ownership mistakes in Texas manufactured home deals:

Putting the home in the LLC but keeping the bank account personal: Commingling destroys veil protection.
Signing leases personally instead of as an LLC agent: The tenant's lease is then with you, not the LLC.
Not updating the Statement of Ownership after formation: Title still in individual name defeats the protection.
Skipping landlord insurance because "the LLC protects me": Insurance pays legal defense costs before any veil-piercing argument starts.
Ignoring the Texas SAFE Act owner-finance limits: Even an LLC is limited to 3 owner-financed sales per year to a non-licensed buyer.

Frequently Asked Questions

Can I live in a manufactured home titled to my LLC?

You can, but you should not. Living in an LLC-owned property can jeopardize the veil protection (courts may treat it as an alter ego), forfeits the homestead exemption, and creates lease paperwork issues (you become a tenant of your own LLC). For a primary residence, title in your personal name and buy an umbrella liability policy for protection.

How much does it cost to set up a Texas LLC for a manufactured home purchase?

Expect $300 for Secretary of State filing, $0 to $300 for a registered agent service for the first year, and $100 to $500 for a basic operating agreement (DIY or attorney-drafted). Annual costs run $0 to $400 for registered agent and compliance. Total first-year cost is usually $400 to $1,100.

Do I need a separate LLC for each manufactured home I buy?

Best practice for investors scaling past 3 or 4 properties is one LLC per property (or per couple of properties), which firewalls lawsuits. Below that, a single LLC with good insurance works. Your approach should match the portfolio size, equity, and risk tolerance. Ask a Texas real estate attorney about a series LLC, which provides similar protection at lower cost.

Can an LLC buy a manufactured home in a mobile home park?

Yes, if park management approves the lease application. Many parks allow LLC tenancy with a personal guarantee from the LLC's member. Some parks refuse entity leases. Always confirm with the park before signing the purchase contract, because a denied park application can kill the deal.

What happens to an LLC-owned manufactured home when the owner dies?

The home stays in the LLC. What changes is ownership of the LLC membership interest, which is governed by the operating agreement and the owner's estate plan. A properly drafted operating agreement can transfer membership on death without probate, preserving the protection and simplifying transition for heirs.

Thinking about buying a Texas manufactured home in an LLC and want a buyer's broker who knows the title, financing, and park approval process? Mobile Buy Buy works with investors across Central Texas every month. Call (737) 777-9437 or start a buyer inquiry and we'll help you structure the deal and close without surprises.