# Mortgage for a manufactured home ... just sharing some info



## FarmerKat

I keep reading online (and being told in person) that it is near impossible to finance a doublewide/manufactured home and that the only way to finance it is via owner financing. I have been doubtful since 1/2 the properties in our county are mobile homes. Odds are, not all of them have been paid for in cash. Since we are selling one, I figured I would look into it more. I think this may help some (buying and selling) so I am sharing what I learned:

- there are conventional, FHA and VA loans available to purchase existing manufactured homes
- the only program not available is USDA as they will only finance houses they previously financed
- FHA still offers loans with 3.5% down
- some require the house to be on permanent foundation (be sure you understand what the lender's definition of the permanent foundation is - generally, there must be mortar between the blocks)
- a house that has been de-titled is preferable (i.e. the title has been surrendered to the state and the "affixation" has been recorded with the court)
- the house must be in decent shape

I have also found local credit union that lists specifically that they finance manufactured homes (if on land owned by the same owner). Mortgage broker is probably the best bet since they can look at different sources of financing. 

Anyway ... just sharing in case someone wants to know since manufactured homes are fairly common in rural areas.


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## Declan

In our area the hardest problem to overcome would be to have it appraise high enough to qualify for the asking price. The market is just flooded with them and they do not generally appraise as well as stick-built homes.


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## Belfrybat

One additional rule by FHA/ VA and most conventional loans, the house cannot be moved except the first time from the dealer's lot to land. This regulation just bit me in the rear. The cost to retrofit the foundation to meet FHA standards was reasonable -- $2300.00 and I was willing to split the cost with the buyer, then his loan officer FINALLY did her homework and discovered the house had been moved twice. I was upfront it was a repo when I purchased it and was moved. Her stupidity in not checking the history cost me 3 months. 
I found the buyer another lender and we are close to closing on the loan: 
https://21stmortgage.com/web/21stsite.nsf/index?OpenForm


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## Bellyman

Thanks, Kat!

The hardest thing to do is to finance a mobile home with no money down. USDA RD Direct, which is how we were trying to find a home for a while (still qualified, just haven't found anything that works), will not do any mobile home, singe, double or triple wide, regardless of foundation. (At least they won't here.)

If a person can offer enough of a down payment, financing options open up considerably. We looked at a place with an older singlewide that had been added onto, about 6-1/2 acres and really good dirt. Really liked the place. But the best we could do was a local lender that told us to come back and see them when we had $10k cash in the bank. No or low down, it just wasn't gonna happen. And we didn't have $10k.

I think we're about to suspend our house hunting in this area and head back to Pennsylvania. Parents aren't doing too good and we think it would be good if we were close by. I guess it does make it easier not having a property left behind to worry about. Who knows, if we can find the right situation there for a time, maybe we can put some cash in the bank and be better able to buy something when the time is right. Even if we don't have enough to pay for something in full, a nice nest egg to start with sure makes things go a lot easier, whether it's buying land and building, buying land and pulling in a mobile home or buying a place that's all ready to move into.


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## FarmerKat

Belfrybat said:


> One additional rule by FHA/ VA and most conventional loans, the house cannot be moved except the first time from the dealer's lot to land. This regulation just bit me in the rear. The cost to retrofit the foundation to meet FHA standards was reasonable -- $2300.00 and I was willing to split the cost with the buyer, then his loan officer FINALLY did her homework and discovered the house had been moved twice. I was upfront it was a repo when I purchased it and was moved. Her stupidity in not checking the history cost me 3 months.
> I found the buyer another lender and we are close to closing on the loan:
> https://21stmortgage.com/web/21stsite.nsf/index?OpenForm


Interesting. When I spoke to the mortgage broker, he did not mention that but then again, he probably can work with either situation. 

I have come across the 21stmortgage as well and it is good to know it is a legitimate business. Thank you for posting that.


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## po boy

Belfrybat said:


> One additional rule by FHA/ VA and most conventional loans, the house cannot be moved except the first time from the dealer's lot to land. This regulation just bit me in the rear. The cost to retrofit the foundation to meet FHA standards was reasonable -- $2300.00 and I was willing to split the cost with the buyer, then his loan officer FINALLY did her homework and discovered the house had been moved twice. I was upfront it was a repo when I purchased it and was moved. Her stupidity in not checking the history cost me 3 months.
> I found the buyer another lender and we are close to closing on the loan:
> https://21stmortgage.com/web/21stsite.nsf/index?OpenForm


Vanderbilt is another one


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## FarmerKat

po boy said:


> Vanderbilt is another one


I found them online as well. Have you dealt with them before?


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## po boy

FarmerKat said:


> I found them online as well. Have you dealt with them before?


We were looking at alternatives when were getting ready to build. Decided to do stick built.

Known of them for years since I was in the mortgage business. It's a Warrant Buffet company and I think the other one is also.


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## FarmerKat

po boy said:


> We were looking at alternatives when were getting ready to build. Decided to do stick built.
> 
> Known of them for years since I was in the mortgage business. It's a Warrant Buffet company and I think the other one is also.


Thanks! It is sometimes hard to decide ... anyone can build a pretty website.


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## 1948CaseVAI

Huge difference between mobile homes and manufactured homes. Mobil homes can be moved more than once and can be set on blocks, etc. A truly manufactured home is made to be moved only one time, from the factory to the permanent foundation it requires.

You can get a mortgage on a manufactured home if you buy it new or buy the property it is on - you cannot move it again and get a mortgage, at least in my state.


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## po boy

1948CaseVAI said:


> Huge difference between mobile homes and manufactured homes. Mobil homes can be moved more than once and can be set on blocks, etc. A* truly manufactured home is made to be moved only one time, from the factory to the permanent foundation it requires.
> 
> *You can get a mortgage on a manufactured home if you buy it new or buy the property it is on - you cannot move it again and get a mortgage, at least in my state.


 That's modular..


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## Belfrybat

Manufactured home and "mobile" is the same thing -- just different terms. They have axles and wheels. Modular homes, OTOH, are built in a factory but transported on trucks and set on permanent foundations -- usually a slab. 
A modular home is treated as a stick built for mortgage purposes.


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## FarmerKat

Belfrybat said:


> Manufactured home and "mobile" is the same thing -- just different terms. They have axles and wheels. Modular homes, OTOH, are built in a factory but transported on trucks and set on permanent foundations -- usually a slab.
> A modular home is treated as a stick built for mortgage purposes.


That is my understanding as well. I think one of things that may make a difference to lenders is whether it is a double-wide or single-wide as the single-wides remain more mobile. I did not specifically discuss that with the mortgage broker as it does not apply to our situation.


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## Pokletu

Don't panelized house kits fall under "manufactured"?


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## Bellyman

Pokletu said:


> Don't panelized house kits fall under "manufactured"?


I was thinking they'd fall into the "modular" category but am not really sure. It seems to be a somewhat "gray" area when you talk to mortgage type folks.


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## po boy

Pokletu said:


> Don't panelized house kits fall under "manufactured"?


No...


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## SeanRampling

Thank you for the information, despite the old topic, it is relevant to me now.


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## keilecpod

I want to sell a manufactured house, but this is a problem in my area to ask for a high price, so I'll probably have to sell it for less than I thought. In fact, I really need the money, so I'm forced to sell it. But still, I would not want to lose a large amount of money when selling, so I will consult with a broker to make a good deal. Thus, I found a company where I can get a mortgage advice Derby, I've heard a lot of good things about them and it's great that they have 1 free consultation. I hope there are real professionals working there who will help solve my problem.


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## Wolf mom

Folks - this thread is from 2016....understand that and don't take what was said then as to what's happening in the mortgage world today in 2021.


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## Saxsona

Sounds good, I don't really like to take mortgages, but this seems like a good idea. I will definitely speak with the guys from Mortgage Advice Sunderland, and see what they think about this. But I know that mortgages have a lot of side effects, a friend of mine got one recently, he also wants to build a house, and you know what, he has to pay that mortgage for 30 years, that's crazy. You need to be courageous to do with that. But maybe I am wrong. What do you think about that? Have a nice day guys.


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## Corvian

Financing options will open up considerably if the person offers you a down payment that suits you. We came to a place with a not very perfect surface (about 6-7 acres), but the land there was great, the surveyors approved. My wife and I liked the area where the house will be located. It was decided to take a loan because we did not have the right amount. I inquired with many acquaintances, and my friend John advised us Kertalaina 100 € - Hae 100e kertaluotto netistä! . We were interested because the money could be picked up online, so we went for it.


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