Manufactured homes can be extremely difficult to qualify for in certain scenarios. We have received a tremendous amount of calls on this topic and would like to make sure everyone understands the options that are available. Throughout this article we will be talking about the loan requirements on typical manufactured home financing and also providing solutions that are outside the box as well.
If you have been denied by a lender, there still may be options available to get you into a new home however they may come with a bit of a premium. Ultimately you have to weigh out your options to determine what is best for you and your family.
Typical Manufactured Home Loan Requirements:
* Purchase and Rate & term loan options available:
* Credit Score of 640 or higher for all loan programs (FHA, VA, Conventional)
* Minimum loan size is 50,000.00 or higher due to HPML laws
* Property must be on its own land, not in a park (no leased land)
* Must be on Fixed Permanent Foundation (Piers, Posts, Beams, Slabs…etc)
* Property must have been constructed after June, 1976
* Manufactured home must be at least 600sq foot or larger
* No cash out refinances allowed on manufactured
If you meet the criteria above, please feel free to reach out to us at 800-779- 4547 and we would be happy to help. You can also apply online at www.LoansReduced.com.
If you are planning to purchase a mobile or manufactured home and you are worried about your poor credit history, you are in luck because there are mobile home loans with bad credit. These are typically sub-prime loans that are given by some lenders to people who have a history of a foreclosure, bankruptcy, loan defaults or late payments.
If you do fall into the category of bad credit or previous derogatory events you will typically need at least a 40-60% down payment or equity in the home for these lenders to even consider extending a mortgage to you. In addition it may be more difficult if you are on leased land rather than on owned land on fixed permanent foundation.
These types of loan products usually come with a much higher interest rate with large closing costs to obtain the new financing. I strongly urge you to stay away from these loan products as you can purchase a single family residence or another manufactured home on its own land and be paying a much lower payment.
The reason why a mobile home on a non-permanent foundation in a park is more difficult to find financing for is because the home is considered personal property like a vehicle and can be moved fairly easily.
This also applies to homes that are on fixed permanent foundation in a park or leased land as in most cases the taxes are paid to the DMV rather than the state. A home where you own the land is considered true real estate because you own the land and the home.
If you have a home that you are seeking to finance in a park, have a lower credit score than 640 or your property doesn’t meet the typical characteristics there might be a few lending institutions that are willing to offer a product with a large premium. Companies such as 21 st Mortgage Corporation specialize in these loans.
Unfortunately when I point my clients in their direction I haven’t heard the best feedback, they know that they are able to charge a premium because they are one of the very few that allow this type of financing. While you may have a lower credit score than 640, in some cases we are able to find out what you need to do to increase the score above that limit to qualify.
In addition if the manufactured home is on permanent foundation and you own the land underneath, we may be able to help you today. Please call us at 1-800- 779-4547 to go over some basic information to determine if we would be a good fit.