HELOC on an Affixed Manufactured Home Classified as Real Property?

Question

Has anyone here successfully gotten a HELOC on a manufactured home that is permanently affixed to land they own and legally classified as real property?

The property has the manufactured home and land together under one mortgage, and I’m confirming the Affidavit of Affixture / real-property status now. Some banks I’ve called immediately say they don’t lend on manufactured homes without asking whether it has been affixed and converted to real property.

I’m looking specifically for banks or credit unions that will do a HELOC on an affixed manufactured home in Arizona when the land is owned, the home is permanently installed, and the property is treated as real estate.

If you’ve actually closed one, which lender did you use and what paperwork or inspections did they require?

Bryan Maddex · Answer

Hey @Ricardo Cervantes .Since helocs are not sold on the secondary markets like 1st mortgages, you do not need to worry if a bank or credit union offers portfolio products or not, just weather or not they will finance a manufactured home.  It will be a yes or no.  Quick search in AZ suggests there are 3 local credit unions that offer HELOCs on manufactured homes.  If this is an investment property, odds are good that they will not offer this on an investment Manufactured home. I work with over 30 lenders that offer helocs, 22 of them will do helocs on manufactured homes.  1 of them used to have pricing for MHs but the latest price sheet does not have this pricing adjustment any longer. I have reached out to my Account Exec to see if they no longer charge a higher rate for MHs or if they no longer offer financing on MHs.No other lenders that I work with allow for Helocs or Heloans on a manufactured home. As stated above, there are a number of lenders that allow for DSCR loans and even more lenders that will do full doc or alt doc income to be used on MHs. Post any other questions you may have!

Erik Estrada · Answer

I have not seen a HELOC yet but there are DSCR fixed mortgages available for manufactured homes

James Driscoll · Answer

The banks hanging up on you are usually just pattern-matching on 'manufactured home' before you can finish the sentence, so you're right to push past them. The piece that actually moves things forward with lenders willing to do this is a foundation inspection confirming the home meets HUD Permanent Foundation Guide standards (the FHA PFGMH). Even lenders that technically allow affixed manufactured HELOCs will often hold underwriting until that report is in hand, and some require it to come from a licensed structural engineer, not just a home inspector. Local credit unions and community banks with portfolio lending are your best starting point because they're not selling the loan to the secondary market, and they have more flexibility to underwrite to the actual documentation rather than an automated overlay that just reads 'manufactured.'

James Driscoll

HELOC on an Affixed Manufactured Home Classified as Real Property?

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