Want to borrow money to purchase or refinance a manufactured home? Here’s how it’s done.
A manufactured home is a property that was constructed in a factory, moved on a flatbed truck and then affixed to the ground. A prefab (or modular) home is a property that is built in pieces on the foundation itself. Mortgage lenders treat prefabs as single-family residences.
Manufactured homes can be intimidating for mortgage lenders. This is because they could be moved, and are thus a higher risk. This can make securing a mortgage difficult.
FHA 30-year fixed-rate mortgages and conventional fixed-rate mortgages are the most common such loans on manufactured homes. Because of the aforementioned risk involved, the financing options available here are limited.
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Here are some additional tips and guidelines for financing a manufactured home:
- The manufactured home cannot have been built before June 15th, 1976 to be eligible.
- Additions to the home are a big deal, as they can cause lenders to request an engineering report. If that report details any problems with the home, they’ll have to be fixed prior to closing escrow.
- If the home was previously moved, that could be an issue to some lenders. Ideally, the home would have been attached to its foundation just once. Obtaining an FHA loan can be much more difficult if the property was previously moved.
- A manufactured home in a park is eligible here. If you have a manufactured home in a planned unit development with homeowner’s association dues (HOA), this is an eligible property type for a lender who offers manufactured home loans.
- VA financing is available for manufactured homes.
You’ll also need a few more things to identify whether your property is eligible, including DMV Hud plates, which are typically found in the kitchen. If these plates are absent, you can get the home’s ID from the Institute for Building Technology. Lenders will order a preliminary title report, which includes the 433 filed with the county representing the manufactured home.
This article originally appeared on SonomaCountyMortgages.com and was syndicated by MediaFeed.org.
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