Manufactured Homes Lending Guidelines On Purchases


Manufactured Homes Lending Guidelines On Purchases

This BLOG On Manufactured Homes Lending Guidelines On Purchases Was PUBLISHED On April 4th, 2019

Not too many lenders offer Manufactured Homes Lending. Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no overlays on government and conventional loans. We are also experts in manufactured home financing.

  • Manufactured homes are becoming increasingly popular
  • Many manufactured homes are better than stick built homes
  • Many folks cannot distinguish a manufactured home versus a stick built home
  • Many are very nice with all the amenities of stick built homes
  • Gustan Cho Associates at Loan Cabin Inc. offers Manufactured Homes Lending on government and conventional loans

In this blog, we will discuss Manufactured Homes Lending.

Traditional Versus Manufactured Homes Lending

Lenders consider Manufactured Homes Lending as higher risk than stick built homes.

  • Many home buyers are attracted to manufactured homes because of affordability
  • These homes are very popular in rural areas where contractors and building materials are not readily available

There are areas where manufactured homes are the only option.

Manufactured Homes Lending

Mobile, Modular, Versus Manufactured Homes

Mobile homes cannot be financed. What determines the verbiage of a mobile home is they are normally not permanently fixed on a solid concrete foundation. Most mobile home owners do not own the land the mobile home sits on. Mobile homes normally have wheels fixed on them. M

Alex Carlucci is a Senior Vice President at Gustan Cho Associates Mortgage Group. Mr. Carlucci is an expert in modular and manufactured homes lending at Gustan Cho Associates at Loan Cabin Inc. Here is what Alex says about the difference between mobile, manufactured, and modular homes:

Manufactured homes are factory-built homes built after June 15, 1976. Those homes are subject to the National Manufactured Housing Construction and Safety Standards Act of 1974 and are required to meet safety standards set by the U.S. Department of Housing and Urban Development (HUD). Those rules are often referred to as the HUD Code. Manufactured homes are built on a permanent metal chassis and can be moved after installation (but moving the home after installation can interfere with financing). Mobile homes are factory-built homes made before June 15, 1976. They may be very nice homes, but they were built before regulators required certain safety standards, and most (but not all) lenders are reluctant to lend on those properties.Modular homes are factory-built homes that are assembled on-site and are required to meet all of the same local building codes as site-built homes (as opposed to the HUD Code). They are typically permanently installed on a concrete foundation. Like site-built homes, modular homes tend to hold value and appreciate more than manufactured or mobile homes, so it’s easier to get loans for modular homes.

Loan Programs Available On Modular And Manufactured Homes Lending

Borrowers can qualify for government and conventional loans on manufactured homes lending.

  • However, lenders do consider manufactured homes lending as higher layered risk financing
  • Mortgage rates are generally higher on manufactured homes lending versus traditional stick built homes
  • Homeowners insurance are generally higher
  • Most lenders have lender overlays on modular and manufactured homes lending
  • For example, most lenders may require a 640 credit score on manufactured homes versus the 580 HUD requires

Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no overlays on government and conventional loans. To qualify for manufactured and/or modular home financing, the borrowers need to own the land. The property needs to be in a fixed permanent concrete foundation. To qualify for manufactured homes lending, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We are available 7 days a week, evenings, weekends, and holidays.

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