How to Finance Manufactured FHA Homes
When you look to finance a manufactured, or mobile, home, finding the right lender is sometimes a hard task. Select your lender, then ensure that the manufactured home is up to FHA (or Federal Housing Administration) standards, which is sometimes a cumbersome task. Through the use of an FHA-approved lender, you can finance your manufactured home with an FHA mortgage.
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Things You'll Need
- 2 months' pay stubs
- 2 months' bank statements (all pages)
- 2 years' tax returns
- Mortgage loan application
- Appraisal
- FHA inspection, foundation certification and engineering report
Instructions
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Find an FHA-approved mortgage lender. Most major nationwide banks are FHA lenders; however, you can search for one in your area through the HUD website.
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Fill out a mortgage loan application with an FHA-approved lender. Provide the lender with 2 months' pay stubs, 2 months' bank statements (all pages) and 2 years of tax returns. Additional documentation may be required based upon your situation.
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Sign all disclosures given to you by your lender to start the process. Prepay any required fees, such as those for the appraisal and FHA inspection, foundation certification and engineering report.
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Allow the inspectors and appraisers to inspected your manufactured home to ensure that it is up to FHA standards, including meeting proper skirting and hurricane strapping requirements.
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Fix any required repairs noted by the inspections and allow the inspectors to reinspect the manufactured home once the repairs are completed.
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Sign all closing paperwork, once the loan is approved, to solidify your manufactured home financing.
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Tips & Warnings
Prior to securing financing, check your credit score and report. Make sure that there are no errors. Also, pay down your credit cards to less than 30 percent of the credit limit to help to quickly raise your credit score. The higher your credit score, the better your interest rate on your new mortgage.
As of late 2009, FHA has significantly reduced the number of lenders that it allows to underwrite manufactured, or mobile home, loans. This may limit your lender options, as well as lengthen the time it takes for you to close your mortgage. Keep this in mind if the process begins to take longer than 6 weeks to close.
References
Resources
- Photo Credit mobiles homes 6 image by Marc Rigaud from Fotolia.com
