Mortgages for Manufactured Homes

An increasing number of homeowners and homebuyers are finding it almost impossible to find financing for manufactured homes. It is true that the vast majority of lenders are not financing manufactured homes these days…WE ARE! And we have low, fixed rates.

There is a sense of urgency with this program. Right now is the perfect time to refinance. Interest rates have come down this year to record lows. There is no better time to lower your interest rate and even consolidate debts to lower your monthly bills.

We don’t know how long interest rates will remain so low or how long we will be able to continue to offer manufactured home programs.

We provide financing for owner-occupied manufactured homes up to 85% of appraised value on cash-out refinances and up to 96.5% on rate-and-term refinances or purchases. 

We also have  reverse mortgages for manufactured homes for borrowers 62 years old and older. Reverse mortgages have come a long way in the past few decades. It’s now government insured, carefully regulated, and incredibly secure. You retain title your home. With a reverse mortgage you won't have to make any mortgage payments and you often can receive tax-free monthly payments from the mortgage company and/or a large lump sum of cash which can be used for any legal purpose. You must occupy the home as your principal residence.

We have access to special programs for manufactured home owners and buyers that only own were the land is leased. Please contact us for these scenarios.

Standard Manufactured Home Lending Guidelines on Owned Land

• Must have a floor area of not less than 400 square feet;

• FICO must be 620 or greater; (we can help improve credit scores)

• Must be constructed after June 15, 1976, in conformance with the Federal Manufactured Home Construction and Safety Standards, as evidenced by an affixed certification label in accordance with 24 CFR 3280.11(manufactured homes produced prior to that date are ineligible for insured financing);

• Must be classified as real estate (but need not be treated as real estate for purposes of state taxation);

• The mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins ;

• Must be built and remain on a permanent chassis and be designed to be used as a dwelling with a permanent foundation built to FHA Criteria;

• Cannot be located in a Trailer Park or Flood Zone.

Inspections:

• For newly constructed manufactured homes, initial and final inspections must be completed by FHA Compliance Inspectors, licensed engineers, registered architects, or other qualified construction industry professional, as determined by the lender.

• All Files must contain an Engineer's Certification signed and with a raised seal verifying the foundation meets HUD'S guidelines as published in the Permanent Foundations Guide for Manufactured Housing.

Cash Investment:

• The borrower is required to have a minimum 3.5% cash investment of his own funds into the transaction . Land equity is NOT allowed to be used for their cash investment regardless of how long they have owned the property. Cash investment may have been made during the time of ownership and does not have to be at closing. i.e. Repairs paid for with own funds, delivery was paid for with own funds, etc. Verification with canceled checks must be provided.

Eligibility:

• US Citizens, Inter vivos revocable trusts, Permanent and Nonpermanent Resident Aliens.

• Owner Occupied Only.

Documentation:

• All borrowers must have valid social security number.

• All borrowers must have at least one valid credit score

• No nontraditional credit.

• Must have open and active trade lines.

DTI Ratios:

• 31/43% (Can go up to 40/45 with compensating factors as determined by the Underwriter)

Underwriting Method:

• Manual Refer or DU/LP Approval Eligible/Accept

Expiration Dates:

• Appraisal: 120 days

• Credit: 60 days

• Income and Asset docs: 60 days

• RESPA docs: 120 days