What Are Manufactured Home Financing Requirements?

Manufactured Home Financing Requirements

Gustan Cho Associates

Manufactured Home Financing Requirements:

Many home buyers of manufactured home financing have a difficult time getting manufactured home financing from mortgage lenders.  Reason being is because mortgage lenders view manufactured homes high risk properties.  Most, if not all, mortgage lenders will have overlays on manufactured home financing.  Mortgage lender overlays are additional mortgage lending guidelines on top of minimum federal mortgage lending guidelines.  For example, to qualify for a 3.5% down payment FHA loan, a mortgage loan applicant only needs a 580 FICO credit score.  However, many mortgage lenders may qualify the home buyer of a manufactured home, however, they may require a mortgage loan applicant to have higher credit scores.  Just off the top of my head, I know of at least a dozen mortgage lenders that require a manufactured home financing loan applicant to have 680 FICO credit scores.  The Money Store have manufactured home lending overlays of 620 FICO credit scores, which is an aggressive stance.  Dozen of other manufactured home financing mortgage lendrs require 640 FICO credit scores or higher.

Manufactured Home Financing Requirements By Lenders

FHA Loan programs allow manufactured home financing.  The manufactured home financing requirements needs to be fixed on a solid concrete foundation.  Minimum down payment is 3.5% down payment for a home purchase and the loan to value is 97.75% of a refinance mortgage on a manufactured home.  Cash out refinance mortgage loans on a manufactured home requires a loan to value of 85% LTV.

Reverse Mortgages For Manufactured Homes Financing Requirements

Manufactured homeowners can also qualify for reverse mortgages as long as the homeowner is at least 62 years old or older and has equity in their manufactured home.  Reverse mortgages on manufactured homes is no different that a regular home.

Manufactured Homes Financing Requirements And Guidelines

Manufactured home financing guidelines require that the land must be owned by the homeowner and the manufactured home needs to be fixed on a concrete foundation.  The floor area of the manufactured home needs to be a minimum of 400 square feet.  There are mortgage lender overlays with regards to credit for manufactured home financing borrowers.  Minimum credit scores for manufactured home financing is 620 FICO, however, depending on the manufactured home financing mortgage lender, higher credit scores may be required.  The reason why manufactured home financing mortgage lenders require higher credit scores for manufactured home mortgage borrowers is because they classify manufactured homes as higher risk investments.  Manufactured homes needs to have been built after June 15, 1976 in order to be financeable and needs to conform to the Federal Manufactured Home Construction and Safety Standards.  The manufactured home needs to be built and remain on a permanent chassis and needs to be designed to be used as a housing dwelling fixed to a permanent foundation constructed to the FHA standards and criteria.  The manufactured home cannot be located in a trailer park and cannot be built in a flood zone to qualify for financing.

Get Pre-Approved For Manufactured Home Financing

If you are a home buyer on a manufactured home and need manufactured home financing, I can help you.  Apply now online by clicking APPLY NOW FOR MANUFACTURED HOME FINANCING and complete the 4 page online mortgage loan application and I will get alerted.  Or you can call me at 262-716-8151 anytime.  I am available 7 days a week, including holidays and weekends to answer all of your questions.

Related> Manufactured homes

Related> Modular building

Related> Pre-fabricated home

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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