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