Mobile home financing

[Louie E.]

Hello.  I’ve always been discouraged by real estate agents in considering mobile homes for the reason that financing would not normally be available.  Is that really the case? Where does one normally go to get financing to buy mobile homes if ever?

Thank you!

[Jason Wray]

Louie,

There is nothing wrong with buying a Manufactured home and to be honest in this market its a great idea if you can find a good deal. Here is what you need to know up front to avoid issues or problems during the loan process/appraisal.

Try and find a MH that was built within the last 15 years the rule is built before June 16th 1976 but most lenders now only want something less than 15-20 years old.

Must be a double wide or larger to avoid majority of lender issues - Cannot have been moved from another location accept from the actual dealer.

Must be on a permanent foundation - On a concrete slab off the axles and in certain states have hurricane tie downs and may require "skirting" (lower portion covered to not see space underneath)

Must make sure that MH is permanently connected to a sewage, and septic tank and all utilities and an be lived in right away.

Your real estate agent may or may not know these requirements but a good Banker/Loan Officer will help you during your search. You can look at the MLS or property website and it should list all of these descriptions above and if not you or the Banker, Lo or Realtor can call.

FHA offers 3.5% down, VA offer 100% Financing if you are a Military Veteran, and Fannia Mae offers 3-5% down for first time home owners. Rates are based on your credit score and loan size. My advice is to try and keep mortgage/loan amount above $125k for better rates and overall approval. Keep in minid the MH must be on its own parcel of land and not in a shared community you or in a mobile home park.

I hope this helps build some confidence and if you have other questions I am happy to answer just message me.