Loans for Buying a Manufactured Home
Financing a mobile home, or a manufactured home, is quite similar to purchasing a single-family home. The guidelines that control credit extension---creditworthiness, income, employment, assets---are usually similar. However, in many states the interest rates, down payments required, and repayment options vary depending on the manufactured home.
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Mobile Homes
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A manufactured home is composed of one or two mobile homes. In some cases, double-wide manufactured homes are indistinguishable from single-family homes. In general, a lender will consider the property a manufactured home if it, in one capacity or another, can be moved from location to location.
Mortgages
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Historically, lenders have required manufactured home borrowers to provide a down payment of at least 10% on the price of the home. With looser credit restrictions following congressional pushes for homeownership, some lenders have reduced this down payment standard to 5%. It's important to consider options before securing financing. The person selling you the home may not offer the best rate available.
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Interest Rates
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In general, mobile home interest rates hover at least 1 or 2 percent over the national mortgage average. Mobile home mortgages are a riskier loan for lenders because the resale on these properties tends to be a bit lower. With solid credit and income, a borrower should be able to secure a rate between 6 and 8 percent, depending on the state of the economy and the real estate market.
Title I Loans
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Title I loans are mortgages sponsored by the Department of Housing and Urban Development (HUD). Private lenders, approved by the government, are allowed to finance manufactured homes. The maximum loan amount for a HUD-sponsored loan is $69,678. If a borrower is purchasing both the lot (land) and the mobile home, the maximum loan amount is $92,904. See the HUD website for approved lenders.
Eligibility
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For Federal Housing Authority loans (FHA), borrowers must meet the following criteria: They must have the necessary funds to make a down payment, they must show evidence that their income is sufficient to repay the loan, they must use the mobile home as their principal residence, and they must have an approved lot on which to place their manufactured home.
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References
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Comments
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why are you all saying you finice manufadtyed homes and I call and you tell me you don't do manfacured homes...stop doing false adverticing and just liening.
