Carry a one-year manufacturer’s warranty if the unit is new.Meet the Model Manufactured Home Installation Standards.In addition to qualifying for financing and meeting its specific standards, to meet FHA requirements your home must: Just the land, not the home: If you already own a home but want a permanent spot to put it, the FHA will cover up to $23,226 of that loan.The maximum allowed for this purchase is $69,687. Just the home, not the land: The FHA will cover a non-chattel loan in a space rent situation, if you can find a lender willing to make it.The maximum covered for this type of purchase is $94,904. The home and the land: If you’re buying both, you can get the conventional mortgage we talked about previously, but having FHA insurance will make banks more willing to give you the loan.The good news, though, is that under Title 1, the FHA insures three types of loans for manufactured homes: That amounts to about 1.35% of your loan amount, which will make your payments higher. Plus, you’ll be required to pay not just one, but two types of mortgage insurance (one for the lender and another for the FHA) throughout the life of the loan. You still have to find your own approved lender and negotiate your terms. The administration doesn’t actually give you a loan it just provides insurance to your lender that you’ll pay it back. The Federal Housing Administration insures mortgages on manufactured homes, making many lenders more willing to finance them. Here is a search tool to help you find FHA-approved lenders. Certain lenders can give you a loan with as little as 5% down, but the interest rate rises after the first five years and gets higher the longer you have it. It doesn’t require a 20% down payment, but interest rates aren’t “fixed” in exactly the same way. Loan terms are shorter, maxing out at 20 years. “That would fall under the category of an auto loan,” says Oehler.Īnother popular mortgage option for manufactured houses is a “ chattel mortgage.” These are useful if you’re looking at a “space rent,” or a manufactured home in a complex where you own the home but lease the land it sits on.Ī chattel loan is not structured exactly like a traditional mortgage. What if you’re talking about buying something that’s still mobile, like a trailer, RV, or even some tiny homes? Or, just go directly to a lender that specializes in manufactured housing, like Cascade Loans, which has a proven track record of giving out loans for manufactured homes since 1999. That way, you can make sure you aren’t barking up the wrong lending tree, so to speak, because many can’t or won’t do loans on manufactured housing at all. So when you begin the mortgage pre-qualification process, let your lender or mortgage broker know upfront that you’re considering manufactured housing. Also, sometimes square-footage requirements are imposed-for example, some lenders might be more apt to give a loan for a double-wide but not a single. If it’s older than 20 years, it will be harder to find financing. Now what?Īccording to Oehler, when it comes to financing, each lender has different requirements. So you’ve found your dream manufactured home, its wheels are history, and it’s for sale along with the land under it. It needs to be fixed to the land, and you have to own the land it’s on.” When you buy it, they’ll bring it to you on wheels, but then you have to take the wheels off. To qualify for a conventional residential mortgage, “it has to be a manufactured home that is classed as ‘real property,’ meaning you have to buy the home and the land it sits on,” says Amy Bailey Oehler of PrimeLending. Department of Housing and Urban Development created a new set of codes for mobile homes to make them safer, and renamed them “manufactured homes.” So that’s the correct term, but it’s helpful to know that many people still confuse these two terms or use them interchangeably. manufactured home: What’s the difference?įirst things first: Technically, the term “mobile home” applies only to structures built before 1976. The mortgage process isn’t exactly the same as for a traditional home. That’s not the kind of cash most people have lying around, which brings us to the obvious question: How do you get home loans for a mobile home? The nice ones aren’t exactly cheap, however: According to the affordable housing research organization CFED, mobile homes cost an average of $45,600 for a single-wide or $86,700 for a double-wide. Today’s models can often be as spacious and beautiful as a traditionally built house, often for a fraction of the price. Mobile homes-or manufactured homes (read on for the difference)-are a much more affordable way to own your own place.
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