Financing a Manufactured or Mobile HomeFinancing a manufactured or mobile home is a different process than financing a traditional stick-built home. Manufactured or mobile homes tend to have a negative stigma in the lending industry, making it difficult to find traditional mortgage lenders willing to finance these types of housing. However, it is still possible to obtain financing for a manufactured or mobile home, if you’re willing to do a bit of homework and shop around for the right lender.
Understanding the Differences in FinancingBefore diving into the financing options available for manufactured or mobile homes, it’s essential to understand the key differences between these homes and traditional stick-built homes. Manufactured or mobile homes are typically built in a factory setting and then transported to the final destination. This means that the construction process is significantly different and must meet specific standards and regulations, which makes financing a bit more complicated. When it comes to financing, traditional mortgage lenders don’t typically view manufactured or mobile homes as favorable housing options. This is mainly due to the assumption that manufactured or mobile homes may not hold their value as well as a traditional home, leading to the perception that they are higher risk investments than stick-built homes.
Eligibility for a Mortgage on a Manufactured HomeTo secure financing on a manufactured or mobile home, you’ll need to meet specific eligibility requirements. Most lenders who offer manufactured home loans will require that the home is built on a permanent foundation, property is owned, and the home meets certain size specifications. Additionally, most lenders will require that the manufactured home is not older than ten years, and it must be in good condition to qualify for funding. It is important to note that eligibility requirements will vary from lender to lender, so it’s paramount to perform research before applying for a mortgage.
Finding Lenders That Offer Manufactured Home LoansIf you’re looking to finance a manufactured or mobile home, the first step is to research mortgage lenders that offer specialized financing products for manufactured or mobile homes. Traditional mortgage lenders may not specialize in these types of loans, so it is important to find a lender that understands the unique challenges of financing a manufactured home. One of the best ways to research lenders that specialize in manufactured home loans is to explore online resources. Many mortgage lenders have websites where you can learn about the company and the products they have available. Additionally, you can also speak with a mortgage broker who can assist in finding a lender that meets your financing needs.
Requirements for a Solid Foundation on a Manufactured HomeOne of the critical eligibility requirements for financing a manufactured home is that it is built on a solid foundation. Many lenders require that the home is plopped on a permanent foundation, such as a concrete block foundation, to qualify for funding. Manufactured homes can sit on several different types of foundations. However, not all types of foundations will meet lender requirements. It is important to understand the type of foundation your home has and to verify that it meets the lender’s requirements before applying for financing. Tip: If you plan on purchasing a manufactured home that is not yet built, consider speaking with your builder and lender to ensure that the home’s foundation meets eligibility requirements before beginning construction.
Tips for Securing Financing on a Manufactured HomeSecuring financing on a manufactured home can be a complicated process, but with the right preparation, you’ll be able to obtain funding. Here are some tips to help you secure financing on your manufactured home:
- Research lenders that specialize in manufactured home financing to find a lender that understands the unique challenges of financing a manufactured home.
- Ensure that your manufactured home is built on a permanent foundation that meets lender requirements.
- Verify that your manufactured home meets specific eligibility requirements, such as size and age restrictions, and that it is in good condition.
- If purchasing a manufactured home that is not yet built, verify that the foundation meets eligibility requirements before construction begins.