How to Get to an FHA Loan for a Mobile Home

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The Federal Housing Administration insures loans used to purchase or refinance mobile homes. The FHA partners with lenders that finance loans that meet the strict FHA eligibility guidelines. People financing mobile homes must have the home installed on a site that they rent or own that meets FHA standards for sewer and water access. The site must also comply with local laws in terms of property usage. In the event of borrower default, the FHA covers most of the losses that the lender would otherwise endure.

Contact local banks and lenders in your area and find out which financial institutions offer FHA-backed mobile home loans. Submit a preliminary application with two or three local lenders so that you can compare terms and rates. You must provide the lender with your identification, 60 days of bank statements and two years of W2s or tax returns to get a pre-approval letter. The lender checks your credit and income to determine whether you qualify for a loan. When you are approved, the lender provides you with a pre-approval letter. Choose the lender offering the best terms.

Determine where you want to place your mobile home. If you do not own a suitable plot of land to install the home, you can install it on a rented plot, but you must check with your lender that the lease and the lot meet FHA guidelines.

Visit local mobile home dealers to find a suitable home to purchase. Provide the dealer with your pre-approval letter to show that you have financing in place. As of 2010, you can buy a mobile home costing up to $69,678 with an FHA-backed loan. You can also finance a home and land package for up to $92,904. You must make a down payment of 10 percent so find a home that fits within the FHA maximum limit and has a down payment amount within your budget.

Agree on a sales price with a dealer and give a copy of the sales contract to your lender. Arrange for the dealer to install the home. The lender must ensure that the installation meets FHA guidelines. Arrange the loan closing and take possession of the home.

Tips & Warnings

  • You can only use an FHA-backed loan to finance a primary residence. The FHA imposes term maximums of 20 years on single-wide mobile home loans and 25 years on double-wide and larger mobile homes.
  • The FHA does not insure manufactured homes built before 1977 because prior to that time building codes were different.

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