Manufactured Homes Mortgage Guidelines And Lending Requirements
This ARTICLE On Manufactured Homes Mortgage Guidelines And Lending Requirements Was PUBLISHED On September 24th, 2019
Gustan Cho Associates Mortgage Group are direct mortgage lenders without any LENDER OVERLAYS.
- Many of you know this by now, but what you may not know is we do offer mortgages for manufactured properties
- The majority of lenders across our nation do not offer mortgages on manufactured housing
- There are a few reasons behind this
- In this blog, we will discuss what a manufactured property is, how to obtain mortgage financing for a manufactured property, and what loan programs are available for manufactured homes
In this article, we will also cover and discuss Manufactured Homes Mortgage Guidelines And Lending Requirements.
What Are Manufactured Homes Versus Stick Homes
A manufactured property is not to be confused with a mobile home or RV (Recreational Vehicle).
- A manufactured home is a type of prefabricated housing that is mostly assembled in factories and then transported to the home lot
- The United States code of federal regulations, 24CFR2380 states manufactured homes are built as dwellings have at least 320 ft.² in size with a permanent chassis
Manufactured homes are built in a factory under federal building codes administered by the U.S. Department of Housing and Urban Development (HUD).
Manufactured Homes Mortgage Guidelines On Eligible Properties
The federal manufactured home construction and safety standards are commonly known as the HUD code or HUD tag went into effect on June 15, 1976.
- That is why many lenders (including LOAN CABIN) cannot lend on a manufactured home built prior to June 15, 1976
- This HUD code created building standards to ensure the integrity of design and construction, fire resistance, energy-efficiency, and overall quality code
Manufactured homes can come in one section or multiple sections.
Benefits Of Manufactured Versus Stick Built Homes
Manufactured homes were originally designed as an easy way to relocate your family.
- They would require being put on wheels and transported to a new location
- Manufactured homes have come a long way since then
- In fact, many are manufactured homes look identical to stick build properties
- Newer manufactured properties, particularly doublewides, are built with much higher building standards than before
This has allowed manufactured homes to maintain their value.
Popularity Of Manufactured Homes Among Millennials And First Time Home Buyers
Believe it or not, millennials and baby boomers alike are interested in manufactured properties.
- Baby boomers love these properties for retirement age when it’s time to downsize
- Millennials love these properties because they are grappling with student loan debt and other high-interest debt
- A manufactured home is usually cheaper than a stick-built property
- There are many ways to customize and build a manufactured home. Or you can buy a pre-existing manufactured property
Many real estate professionals commonly confuse manufactured homes and modular homes. Call us today for more information.
How To Secure Financing On Manufactured Homes
Mortgage financing is not much different when buying a manufactured home versus a stick-built property.
- There are a few extra steps involved
- If you are interested in obtaining mortgage financing for a manufactured home, call Mike Gracz on 630-659-7644
After your initial conversation, either Mike or one of the highly skilled loan officers at Gustan Cho Associates will assist you through the process.
Starting The Mortgage Process
You will need to send in assets and income documentation, then complete an online application.
- You will need to send in your bank statements, pay stubs, W-2s, tax returns (not always needed), and driver’s license or state ID
- Those documents along with the online application will allow the loan officer to get you pre-approved to buy a manufactured property
Now that you have been pre-approved, you will go out shopping for your manufactured property.
Types Of Financing Available On Manufactured Homes
First, we must set a few ground rules.
- In order to qualify for mortgage financing through Gustan Cho Associates Mortgage Group
- A manufactured home must be constructed after June 15th, 1976
- It must also be considered true “real estate” on a PERMANENT CHASSIS
- The home may not be previously installed or occupied in a different location
- Must be up to date with all codes by HUD
- The property may not be a single-wide, it must be a double-wide or greater
- You must also own the land; a leasehold estate or park fee is not acceptable
- Please call us for more details
- There must be a HUD data plate often referred to as a compliance certificate
- This is usually mounted to the manufacturer property and contains vital information such as the manufacturer’s name, model name, manufactured year, and serial number
Please see HUD FAQ PAGE for more details.
Assuming the manufactured property you have selected meets the information above, you will have an extra step through the mortgage process.
Engineering Certification Required By HUD
When purchasing a manufactured home, an engineer certification on foundation compliance is required.
- There are certain instances where you do not need an engineering certificate
- Such as if a home is currently a HUD REO or an FHA to FHA/VA to VA refinance loan
- In certain cases, our investors will allow the previous engineer certificate to be used if that certificate is less than 5 years old
- Restrictions apply and the appraisal must pass on to write a review
Besides the structural engineer report, the qualifications are very similar to your everyday stick-built mortgage financing.
Manufactured Home Mortgage Guidelines And Loan Programs
So, you found a manufactured home that is up to date with building codes, now you need a mortgage.
- You may utilize a Conventional, FHA, VA, or USDA mortgage loan to buy or refinance a manufactured property (NON-QM loans are not available)
- We even offer MANUAL UNDERWRITING on manufactured housing
- While most lenders do not offer loans on manufactured housing, we are incredibly aggressive
Each agency does view manufactured houses use differently. Please call us today to go over specifics on each loan type.
Homeowners Insurance On Manufactured Versus Stick-Built Homes
When weighing your options with manufactured properties it is important to remember that homeowner’s insurance is more expensive on a manufactured home compared to a stick-built property.
- In general, a stick-built structure is stronger against extreme weather conditions
- Heavy rains and strong winds can damage manufactured homes
Since manufactured homes typically have more insurance claims, the insurance premiums are more expensive.
Qualifying For A Mortgage With A Direct Lender With No Lender Overlays
Gustan Cho Associates Mortgage Group are here to help you buy a manufactured home.
- We are direct mortgage lenders with more loan programs than most banks offer
- If you have been turned down by your current lender, give us a call
- We work with many families for up to 12 months before they qualify for the home of their dreams
- Our highly-skilled staff is up-to-date on all mortgage guidelines
- We look forward to helping you purchase your next home or refinance your current home
- If for some reason you do not qualify today, we will personalize a financial plan to qualify as soon as possible
For any mortgage question, please call Mike Gracz on 630-659-7644 or send an email to firstname.lastname@example.org! We look forward to helping you and your family!