Can you get a mortgage for a manufactured home?

March 4, 2021/Scott Sheldon

One of the types of homes people tend to look at in a high-cost market is manufactured homes. If you’re in the market for buying a house or even refinancing a house that you already home here are all you need to know about manufactured homes…

Manufactured homes are built in a factory and shipped on a flatbed then affixed to a permanent foundation. Most lenders will not originate manufactured homes just because they’re considered riskier even if they’re attached to a permanent foundation. We are talking about manufactured homes on land where you own the land and the real estate in its entirety as a whole with no space rent. As such if you can find a lender here are some nuances

  • Must double-wide or bigger
  • Can have a single-family residence on the property
  • Must DMV HUD plates
  • 433b filed with the county
  • Build June 1st, 1977 or after.

These are lending requirements for both the FHA, the VA, and conventional financing when it comes to Manufactured Homes. Manufactured homes typically are a little more expensive than the traditional stick-built single-family home, but also offer the advantage of being more affordable from a budgetary payment standpoint.

In addition, the manufactured homes are not to be confused with prefab homes or modular homes which are not the same thing. Prefab and modular homes are built like Legos in a factory, and then the pieces are shipped over to the construction site and are put together at the foundation, much like stick-built home is, and as such they are treated the same as a single-family residence from a financing point of view.

Manufactured homes are built in a factory as stated above and are shipped over on a flatbed truck and then attached to the foundation and as such even though they’re attached they could be detached and subsequently repositioned which is why there’s an inherent risk the lender takes in granting such a loan which is why they cost a little bit more than traditional stick-built single-family homes.

A manufactured home could be a very worthwhile investment depending on the area purchase price and location in the broader home buying and or financing plan for you and your family. Talk to a lender who knows manufactured homes acutely well and has the resources and options available so you can decide for yourself and your family what makes the most financial sense in your real estate plan.

Looking to finance a manufactured home? Get started now with a quick quote!

 

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