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asked Nov 25, 2018 in Buying a Home by Ken

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Hello, and thank you for writing.

I highly recommend that you talk to a lender before buying anything. because if you make a mistake, you won't be able to finance your manufactured home. For instance, most programs will not allow you to purchase a used manufactured home (one that has already been installed on a site) and move it to a new site. And if you can't qualify for a manufactured home loan, what you're looking at is a lot loan -- which is much harder to qualify for, harder to find, and costs more.

It is much easier to qualify for a loan including the home and lot than it is to qualify for a lot loan only. You can take what you planned to spend on buying the home outright and use it for the down payment on this loan.

FHA, VA, USDA and conventional (non-government) lenders readily finance manufactured homes and land bought together, and FHA also allows manufactured homes on leased land. You can also buy a new manufactured home and property separately and finance it through these programs. The USDA, for example, says that it finances

"Purchase of a new manufactured home, transportation, permanent foundation, and installation costs of the manufactured home, and purchase of an eligible site if not already owned by the applicant."

However, you cannot buy a used manufactured house installed on one lot and move it to another with these loans.

Whether you get a lot loan or manufactured home loan, the amount you can finance depends on your down payment (plan on 25 percent down for a lot loan, as little as zero for a USDA loan or VA loan and 3.5 percent for an FHA loan) and your income.

I can't really tell you how much you'd qualify to finance under any program or scenario without that basic information. Any lender you contact would also need that -- your income, debts, and down payment -- to determine a loan amount. Be prepared to furnish an estimated credit score as well.

To give yourself an estimate without giving your information out, check out our mortgage affordability calculator here. https://themortgagereports.com/mortgage-affordability-calculator
answered Nov 26, 2018 by GinaPogol (47,650 points)

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