Manufactured Home Loans

Are you looking to purchase your own manufactured home but are unsure of how to finance it? If so, you’re not alone! Many people don’t know what a manufactured home loan is or how to qualify for one. This page will help you better understand what you need to know to get your new home today!

What is a Manufactured Home Loan?

Most mortgages in America are traditional conventional loans. Traditional conventional home loans, however, are not always suited for manufactured homes. So what is a manufactured home loan? These types of loans cover “prefab homes” and can be a great option for those who want to purchase or refinance. 

Like any other type of loan, manufactured home loans come with their own rules and regulations — things like property requirements, fees, and closing costs. If you’re considering getting a manufactured home loan for your future purchase, there are some important things you should know.

What are the Different Types of Manufactured Home Loans?

One of the first things you’ll have to do when applying for a manufactured home loan is to determine which type will best suit your needs. Here are some of the most common types of manufactured home loans:

• Conventional Loans (e.g., Fannie Mae, Freddie Mac): Since manufactured homes differ from traditional houses, Fannie Mae and Freddie Mac offer specialized conventional loan options for “prefab” home buyers. However, in order to qualify, your home and property must meet specific qualifications to be eligible for the loan.
• FHA Manufactured Home Loans: Backed by the Federal Housing Administration (FHA), there are extra things to consider when looking into an FHA manufactured home loan.  The FHA has extra property requirements that will be addressed in the appraisal of the home.  FHA also requires mortgage insurance (MIP) up front and as a part of the monthly payment which has to be factored into the consideration between a conventional or FHA loan.
• VA Manufactured Home Loans: This loan is only available to veterans and qualifying active duty service members. And, being similar to an FHA loan, you’ll be able to purchase both the home and land with one loan. However, it’s important to note that you’ll need to request a Certificate of Eligibility (COE) in order to be considered for this loan.

• Chattel (Home Only Loans): Chattel loans are used to purchase a new home without including the land underneath in the financing.  Manufactured homes financed with a Chattel loan are often placed on rented land (such as in a community) or on family-owned land.  However, sometimes people choose to finance their home separately from their land, even if they own the land.

Different institutions offer each type of loan with their own requirements for qualification. While some are more flexible than others, it’s important to work with a reputable lender that can point you in the right direction based on your situation, and Cascade Financial Services is here to help.
 

How to Qualify for a Manufactured Home Loan

 
Getting a manufactured home loan is similar to getting a typical home loan. You’ll have to prove your income, savings, and creditworthiness just like you would with a traditional home. To qualify for a manufactured home loan, eligible borrowers need to:

• Have funds readily available to make a minimum required down payment or have equity in land that may be used in place of a traditional down payment.
• Prove that they have a steady income and can make loan payments while covering additional expenses in their life (e.g., food, water, electricity, etc).
• Have the intention of making the manufactured home their primary residence.
• Have access to land (rented or owned) in which the manufactured home can reside.

Frequently Asked Questions on Manufactured Home Loans

 
When it comes to manufactured home loans, there is a lot to be understood — and it can be a tad overwhelming at first glance. We’re here to answer some of the most common questions you may have about manufactured home loans: