Be sure to get the right loan for your new or existing manufactured home. This article discussed the basic loan types.
The three major loan programs for a manufactured home are: Government insured (FHA and VA), Conventional and Equity Loans. These programs are for manufactured homes on real estate you own, or will own. Not for homes in a park where you lease the land.
If the company you call can’t do your loan, you won’t often be successfully referred to another company, that can do your loan, because the loans are funded from different sources that do not interact with each other.
It depends on whether the manufactured home is brand new or previously lived in as to the loan program you can get.
If you buy a brand new manufactured home, sold to you by the dealer, he may be able to offer you some loan programs, both Government and Conventional, that other loan sources do not have.
But, if he can’t do the loan, he probably won’t send you to a Mortgage Broker who might help you. That is, unless he hopes a Mortgage Broker will have loan programs he doesn’t offer.
The Mortgage Broker has programs, for financing manufactured homes, that are not brand new homes. The Broker can offer you FHA and Conventional loans, just like the dealer, but only for properties that are already standing and permanently affixed to real estate that you own or will own.
Presently, you can get a 96.5% purchase loan for your manufactured home from FHA.
The Mortgage Broker can offer you the third type of lending as well. This is called Equity Lending. (Hard Money Loans). The loan guidelines are only concerned with the lender equity position created through the loan. They don’t consider borrower credit at all. At this time, most of these loans are for non-owner occupied lending, not owner occupied properties. Please call me to discuss information about at types of credit allowed.
Equity loans are made by individuals and offered through mortgage companies. This is one step away from borrowing from an individual. They make short term loans of three to fifteen years. The rates are high, and the loan to value percentage is low, but sometimes this is the only type of loan you can qualify for right now.
For instance, if you wanted to buy a manufactured home or just move one on to property you want to buy, or already own, you might need an equity loan to get the home set-up and ready for the “take out” loan. After the installation, you can obtain a traditional type of long term loan. Please see more information at California 433a Occupancy Certificate Information.
Most loan types do not allow financing on manufactured homes that have been installed more than once. FHA, for instance, tracks the home history to be sure that the home came directly from the dealer to be installed on the location where it presently is.
Today, Manufactured housing is a popular alternative to “stick” built homes. Manufactured home financing is a little different, so be sure to know all your alternatives before you sign for a loan.
Sellens Real Estate Lending is a Southern California Based Real Estate Mortgage Broker offering Loan Programs for all types Properties, not just manufactured homes.
The Company was started by Judith A. Sellens in Orange County in 1991. She has 35-plus years experience in real estate related fields. The Company Home Office is in Yucaipa, California and is licensed by the California Department of Real Estate, with a mortgage loan originator endorsement by NMLS.