How lending and refinancing work when you’re buying a manufactured home.

With the way home prices are right now, buying manufactured homes is becoming more and more popular. Is it harder to buy a manufactured home, and does owning one change the refinancing process? The answer is that it depends. Many lenders won’t touch manufactured homes, and there is a significant difference between mobile homes and manufactured homes. 

A mobile home is precisely what it sounds like: It’s a home you can move around. It may seem like a lower-cost property at first, but keep in mind that you have to pay rent for the space and the house itself. The difference with manufactured homes is that they need to sit on permanent foundations. You need to own the land and the structure, it has to be built after 1976, and it needs to have its own source of water and sewage.

“Many lenders won’t touch manufactured homes.”

Let’s say your home meets these requirements. What type of loan can you get, and how large of a down payment do you need? If you’re a veteran, you can use a VA loan and put 0% down. For FHA loans, you’ll need a downpayment of at least 3.5%. Conventional loans call for 10% down. 

The credit requirements go all the way down to 550 for FHA loans, which makes it much easier to get financing. The good news is that if you already own a manufactured home, you can refinance your loan and take cash out if you want. 

The best loan type will depend on your specific situation, so if you want to learn which one would suit you best, call or email me. I would love to help.