Manufactured Home Loan Mortgages – Owner-Occupied Homes

Today, manufactured home mortgages are primarily for owner-occupied homes.

At least, that applies to mortgages with the best rates obtained through FHA financing, VA, and Conventional.

Manufactured Home Loan Mortgages - Owner-Occupied HomesThere are equity lenders (Hard Money Lenders) that will loan on manufactured homes.

However, their preference is to loan on investment-type homes, but they do make exceptions.  Their interest rates and loan fees are very high, and are generally used for short-term financing for 2 or 5 years.

Click on the links below, for more information:

What does Owner-Occupied mean?

Owner-Occupied is a term of art in the Real Estate Lending profession. If you live in, and own the property your are buying or refinancing, then the probability is that you will make the payment of this mortgage a priority.

Compared with a rental you may own, payment of the rental property mortgage will be at a lower level than the home you live in yourself.

Manufactured Homes on Permanent Foundations

Using the example of Riverside County, California, permanent foundations include as many as 20 different construction types.

Without the benefit of a foundation installer or an government inspector, it is not often possible for the unskilled person to determine if the home has a permanent foundation classification.

Evidence of the foundation compliance, is a 433a Document, which is issued and recorded.

Manufactured Home – No 433a Certificate Available

Riverside Housing and Community Development takes applications for permanent foundations.

Manufactured Home 433a and Certificate Types

Manufactured Home Foundation Installations

Manufactured Home Reverse Mortgage

Obtaining a Copy of a 433a Occupancy Certificate

Three Types of Manufactured Home Mortgages

Program Highlights for Manufactured Homes on Fee Simple Land

FHA has the most lenient credit rules, and the lowest down payment of 3.5% of the purchase price. Why is that? Well, FHA pricing will be better for the borrower as compared to the other types of lending for manufactured homes.

FHA underwriting is more lenient than the others. A borrower with “challenged credit,” can often get an FHA loan.

VA has zero down loans, plus the seller has to pay some of the fees that would normally be higher fees to the borrower. At some times, the VA interest rates will be lower than FHA, and of course, no other programs, at the best rates, offer no down payment financing.

Conventional loans are available for manufactured homes, and are generally used when the borrower has 20% to put down, because there is no mortgage insurance premium paid that way.

Depending on the interest market, the rates to obtain this loan can be higher, and so can the costs. It is necessary to check all the options before committing to one type loan or another.

There are cash out refinances, as well as rate and term refinances, designed to lower your payment, for manufactured homes, offered by  all of the traditional lending programs.

FHA only makes loans on owner-occupied properties of 1 to 4 units, with the borrower living in one of the units.

FHA does not offer financing for investment properties.

FHA will finance 2nd homes. There are qualifications as to what a 2nd home is though.

At this time conventional lending will not loan on investment properties for manufactured homes either. Similar to FHA, they will loan on 2nd homes.

Please call me to talk about the type and age of the manufactured home you’re interested in buying or refinancing. I’ve never had a loan refused because of the brand name of the manufactured home. The loan guidelines address the age and size of the home.

Just like regular housing, the manufactured home has to be in good repair and no health or safety issues. If the appraisal discovers health and safety issues, those repairs have to be made before the loan closes. Normally repairs are a seller cost.

Please call to discuss your manufactured or mobile home loan needs.

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