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Financing Mobile/manufactured home
asked Oct 5, 2018 in Buying a Home by Lesbia

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Manufactured homes, aka mobile homes, have several financing options. The one that works best depends on the home itself and how you intend to situate it.

For instance, if you purchase a single-wide and plan to move it from place to place (leaving its wheels on), it would be considered personal property, not real estate. You'd pay your taxes to the DMV, not your county Assessor. You'd finance with a personal property or vehicle loan. There are many outfits that specialize in this type of financing.

HUD (FHA) also backs small loans for this kind of home purchase. They are called Title 1 loans, and you can find out more about them in this article. https://themortgagereports.com/21473/manufactured-home-mortgage-loan

Homes that are real estate must be secured on an approved 8-point foundation, pass a manufactured home appraisal / inspection, be at least 400 square feet. They are at least double wide. Some program require that you also purchase or already own the land. Others allow you to own the home and lease the land.

You may choose to buy a manufactured home already on a lot or in a development of other similar houses. In this case, loans like VA, FHA and USDA finance the purchase of the home, the property (if applicable), and the cost of moving and setting up the house n the property. Interest rate sare similar to those of financing traditional houses.

Fannie Mae and Freddie Mac also offer programs for the financing of manufactured housing. Criteria are strict, but if your credit is good and the property meets their guidelines, you're likely to get the best rates from these programs.

Good luck and thank you for writing.
answered Oct 5, 2018 by GinaPogol (47,650 points)
edited Oct 5, 2018 by GinaPogol

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