May 23, 2017
Manufactured housing has come a long way over the past few
decades. Originally tagged as “mobile homes” back in the 1930s, today’s
manufactured home is built to rigid standards issued by the Department of
Housing and Urban Development, or HUD. They are an excellent option for those
wanting a lower cost home while still living in a quality manufactured home.
But not every mortgage company offers manufactured home loans but we do. Even
mortgage companies who have financing available for manufactured home may not
have very much experience in placing them and the home buying experience can
end up as a disaster.
It’s relatively easy to find a mortgage company who offers
manufacturing housing mortgages but the trick is to find a mortgage company who
knows how to properly process, approve and appraise a manufactured housing home
loan. Here are a few things you need to ask your prospective lenders.
Do you offer FHA
loans for manufactured homes? The Federal Housing Administration, or FHA,
has a program available to finance a mobile home. The FHA loan for manufactured
homes asks only for a 3.5% down payment. FHA loans are typically easier to
qualify for compared to say a conventional mortgage with a small down payment.
The property must be permanently attached to an approved foundation and the
home must be built after June 15, 1976 and the loan amount must meet FHA loan
Do you offer other
types of financing for manufactured homes? See if the mortgage company offers more
than just the FHA option. Lenders with experience financing manufactured
housing typically provide a range of loan options from which to choose. A
conventional loan is perhaps the most common and follows underwriting guidelines
similar to other conventional offerings.
Can I finance a
manufactured home as a second home? Buying and financing a manufactured
home in a vacation area is also a popular option. However, FHA loans, because
it is a government-backed mortgage, require the purchase to be for a primary
residence and can’t be used to finance a vacation or second home.
For more information or questions about mortgage loans, please call (855) 757-8748.