Financing in Rescue>Question Details

Mark, Home Buyer in Orangevale, CA

What about a manufactured or modular home on acreage? Can these be financed with a normal mortgage?

Asked by Mark, Orangevale, CA Sun Mar 30, 2008

There are lots of great 1-30 acre parcels with nice modular homes on them - that you could live in for the long haul. What is the deal - do you need to pay cash to buy one?

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Hi Mark

To clarify, if the manufactured/mobile home has been attached to a permanent foundation, which means that the wheels and towing hitch have been removed, then chances are you can get a low fixed rate FHA loan. As Suzanne said, mobile home lenders will charge much higher interest rates than an FHA lender would. So the best option would be to see if the home is HUD compliant first. Manufactured/mobile homes are an affordable and suitable option for many borrowers. In fact, the newer models are virtually indistinguishable from stick built housing.

These homes are not registered with HUD, the outside tag on the home certifies that the home was built in accordance to the Federal "Manufactured Housing Construction and Safety Standards", which is a requirement for HUD financing. Prior to June 15, 1976, these standards were not in place. If the home has tags and an interior data plate, then it is a manufactured home. The interior data plate is usually in a linen closet, inside of a kitchen cabinet or by the electrical panel. This will give you all of the details of the home, such as wind zone, roof load, heating, cooling, manufacturer and model #.

Also, you can check with the local tax assessor's office to see if this home has been classified as real property. If you need any help, please feel free to contact me.
1 vote Thank Flag Link Fri Sep 19, 2008
A modular with a basement on bout five acre with its on we'll be real nice
0 votes Thank Flag Link Wed Jan 7, 2015
You may want to log onto http://www.mh-lending.com or http://www.themanufacturedhomelendingsource.com for information on how to obtain funding for your mobile/manufactured home.

If you need engineered certification, affidavit of affixture, or if in California you need 433-A documentation, or if you need a foundation inspection, installation, retrofit or repair please contact us at http://www.onthelevelcontractors.com.

We are the biggest and only full service Nationwide mobile home and manufactured home contractor, dealer, engineered certification and foundation installation and retrofit company in the USA and can help you with your requirements.
0 votes Thank Flag Link Thu Aug 27, 2009
Yes Glen, I do these loans all day long. Any seasoned HUD lender can do these loans. The minimum down payment is 3%, however that mandate will be changing to 3.50%.
0 votes Thank Flag Link Mon Sep 22, 2008
Actually I think my answer was that I had to finance the land alone without consideration for the vehicle or modular or manufactured home. Then after I built a home on the property with a construction loan and then I demolished the Fleetwood.
I think I said the other option is to get seller financing. I live in Rescue and actually went though this first hand for not a buyer but myself.
0 votes Thank Flag Link Fri Sep 19, 2008
A lot of clarifying on this question... The statement below is off the California Department of housing website. Here is thier website. Lots of good info... http://www.hcd.ca.gov/codes/mhp/.

Federal labels are issued by the U S Dept. of Housing and Urban Development (HUD) from 6/15/76 on.

Have any of the mortgage people on this question actually done a California loan on a manufactured home without a large down?


Health and Safety Code (HSC) Section 18026, requires that all new and used manufactured homes (includes mobilehomes) manufactured after September 1, 1958, bear either a federal label or insignia when offered for sale, rent or lease in California. Federal labels are issued by the U S Dept. of Housing and Urban Development (HUD) beginning 6/15/76. State insignias are issued by the California Department of Housing and Community Development (HCD) between 9/1/58 and 6/14/76, except that replacements are currently available as discussed. When such labels or insignias are lost or destroyed, replacement insignias are available from the Department. Manufactured housing dealers transacting sales of manufactured homes not bearing the appropriate label or insignia may be found guilty of a misdemeanor. The replacement insignia must be obtained prior to offering the home for sale, rent or lease.
Web Reference: http://www.maui4rent.com
0 votes Thank Flag Link Fri Sep 19, 2008
Suzanne has the best answer below. There is still a lot of confusion about the terms modular and manufactured. You use the word modular in your question and if it is truly a modular home attached to permanent foundation than it can be financed like any other loan. No where does it say this has to be disclosed that its modular. If it is manufactured it will have a tag on the home and be registered with HUD. Needs to be disclosed it's manufactured. I sell and build with modular and manufactured homes in addition to having a real estate brokers license in Calif. and Hawaii. Let me know if you have any other questions or if I can clarify anything better.
0 votes Thank Flag Link Fri Sep 19, 2008
Hi Mark

I am a direct FHA lender, specializing in manufactured homes since 1992. I am also a HUD DE (direct endorsed underwriter) In order for the home to qualify it must have been built after June 15, 1976, and must have the HUD tags on on the exterior of each section. If the tags are missing, I can locate the information as long as the interior data plate is available. The home must be taxed as real property. The home must be on a permanent foundation and must be inspected by a structural engineer or registered architect to certify compliance with the HUD permanent foundation guide.

Other than that, there is not much difference. We can lend up to 97% on a purchase a 95% for a cash out refinance. The seller may contribute up to a 6% of the purchase price to help with the closing costs and prepaid items.

Please feel free to contact me if you need help with the mortgage. We lend on singlewides, doublewides and triplewides. These are all government insured, safe, fixed rate mortgages. Have a great day

Jackie Pulcano, SVP
United Mortgage Corp
800-462-4862
0 votes Thank Flag Link Fri Sep 19, 2008
Modular and manufactured are not the same. In some of the answers to this question here this is hinted at but I'm not sure anyone has been that clear. A manufactured home is a mobile or trailer, and is financed more like a car - higher down payment, higher interest rate, shorter term loan. They do not have the same ability to appreciate like a stick built home but are more likely to depreciate like a car.

There are lenders who specialize in mobile home loans. If I were you I'd start calling around the lenders in your area to get referred to someone who does that.
0 votes Thank Flag Link Fri Sep 19, 2008
good afternoon....the answer to your question is yes....the value of the home will be valued with the house and the first five acres...3% down and some costs should do the trick....what is the construction time?...challenge me to get you approved....best regards, bob mcclure....mortgage now...farmington, michigan....
Web Reference: http://www.loaningMichigan
0 votes Thank Flag Link Fri Sep 19, 2008
I feel your pain I am realtor living in Rescue and see exactly what you see.
Here's my story I bought land with a modular on it built in 1977. Financed the land only. Then built a home using a construction loan and got the credit for the square footage of the modular from the county. It is complicated to do all that but in the end I got what i wanted which was a great house on 9 acres and saved a ton of money.
Option 2:. I would ask for seller financing from the seller. Or you could search for a small portfolio lender who might be able to help at a higher interest rate.
0 votes Thank Flag Link Fri Sep 19, 2008
Mark, just adding to the previous answers (which contained solid info).......VERY VERY few lenders will extend credit on manus in this market. I don't believe Fannie will underwrite them at all now, FHA will still do them but you'll need at least 10% down. Typically you'll need a HUD certification as evidence that the home has been properly attached to the foundation. The home also should be built after 1978 and the land can't be leased.

However......everything above is for manus....modular homes are quite often treated like stick builts. Then your main hurdle will only be the acreage!!!

Regards, Jeff
0 votes Thank Flag Link Tue Apr 8, 2008
Ute is right on as usual.

The loan underwriter has to be familiar with country homes.

Lenders consider vacant land to be a riskier asset than buildings. Therefore, land loans are costlier and require higher down payments than home loans. A modular, or mobile home loan on land is something of a hybrid loan.
Somewhere between a home loan and a land loan.

A great deal depends on the percentage of the property value that is attributed to the dwelling and how much of the value is in the land. The underwriter must also consider the age of the manufactured home, and whether it is considered personal property or real property. The type of foundation as Ute mentioned, is very important.

Because of the financing complexities, manufactured and modular homes on land have to be priced lower than standard homes to be competitive. They frequently show up in MLS price searches as seeming bargains. Once the additional financing costs and resale marketing hurdles are analyzed, the lower prices are well justified.
0 votes Thank Flag Link Sun Mar 30, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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Manufactured homes get higher interest rates too...
0 votes Thank Flag Link Sun Mar 30, 2008
Hi Mark. While you don't have to pay cash, financing manufactured homes is different than financing a stick-built home. Typically, the rates are higher, you need a bigger down payment and there are limitations on how much acreage you can have. The age of the home and what kind of foundation it is on can also be important factors. You should contact a mortgage broker with experience with manufactured homes. If you put a new manufactured home on land, the company that sells the manufactured home will also have financing options. I hope this helps.
0 votes Thank Flag Link Sun Mar 30, 2008
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
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