Manufactured Home Financing Requirements And Guidelines

Manufactured Home Financing Requirements And Guidelines

Gustan Cho Associates are mortgage brokers licensed in 48 states

This article covers Manufactured Home Financing Requirements And Guidelines

Manufactured Home Financing Requirements:

Many home buyers of manufactured home financing have a difficult time getting manufactured home financing. Both the Department of Veteran Affairs (VA) and the U.S. Department of Housing and Urban Development (HUD) have the same mortgage guidelines on manufactured home financing.

  • The reason being is because lenders view manufactured homes as high-risk properties
  • Most, if not all, lenders will have overlays on manufactured home financing
  • Mortgage lender overlays are additional lending guidelines on top of minimum federal mortgage lending guidelines
  • For example, to qualify for a 3.5% down payment FHA loan, a home buyer only needs a 580 credit score
  • However, many lenders may qualify the home buyer of a manufactured home
  • However, they may require borrowers to have higher credit scores
  • Just off the top of my head, I know of at least a dozen lenders that require a manufactured home financing loan applicant to have 680 credit scores
  • Gustan Cho Associates Mortgage Group no manufactured home lending overlays
  • We can finance manufactured home buyers with 580 credit scores
  • Dozen of other manufactured home financing lenders require 640 credit scores or higher

Manufactured Home Financing Requirements By Lenders

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FHA Loan programs allow manufactured home financing.

  • The manufactured home financing requirements need to be built on a solid concrete foundation
  • The minimum down payment is 3.5% down payment for a home purchase
  • 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
  • 580 credit scores

Borrowers can have outstanding collections and charged-off accounts and qualify for manufactured home FHA and VA Loans.

Mortgage Guidelines After Bankruptcy And Foreclosure
Mortgage Guidelines After Bankruptcy And Foreclosure

2-year waiting period requirements after Chapter 7 Bankruptcy to qualify for VA and FHA Manufactured Home Loans.

  • 3 year waiting period after housing event (foreclosure, deed in lieu, short sale) to qualify for FHA Loans
  • 2 year waiting period after housing event to qualify for VA Loans
  • Borrowers in a Chapter 13 Bankruptcy Repayment plan can qualify for VA and FHA Loans one year into their Chapter 13 Bankruptcy repayment with Trustee Approval

There is no waiting period to qualify for manufacturer home FHA and/or VA Loans after the Chapter 13 Bankruptcy discharged date.

Reverse Mortgages For Manufactured Homes Financing Requirements
Reverse Mortgages For Manufactured Homes Financing Requirements

Manufactured homeowners can also qualify for reverse mortgages  Homeowners needs to be at least 62 years old or older and has equity in their manufactured home.

  • Reverse mortgages on manufactured homes are no different than a regular home

Manufactured Homes Financing Requirements And Guidelines

Manufactured home financing guidelines require that the land must be owned by the homeowner. The manufactured home needs to be permanently built on a concrete foundation.

  • The floor area of the manufactured home needs to be a minimum of 400 square feet
  • There are overlays with regards to credit for manufactured home financing borrowers
  • Minimum credit scores for manufactured home financing is 620 by most lenders
  • However, depending on the manufactured home financing mortgage lender, higher credit scores may be required

The reason why manufactured home lenders require higher credit scores is that they classify it as higher risk investments.

Manufactured Property Requirements
Manufactured Property Requirements

Manufactured homes need to have been built after June 15, 1976, in order to be able to finance it:

  • 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
  • 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

Cannot be built in a flood zone to qualify for financing.

Get Pre-Approved For Manufactured Home Financing

Home Buyers of manufactured homes in need of manufactured home financing, contact Gustan Cho Associates Mortgages.  Apply now online by clicking APPLY NOW FOR MANUFACTURED HOME get started in getting qualified and pre-approved  Or call us or text us for faster response at 800-900-8569 anytime. Or email us at We are available 7 days a week, including holidays and weekends to answer all of your questions.

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