Manufactured Home Financing & Insurance – The Basics
A rumor we’d like to dispel about manufactured home financing is that it is harder to obtain than if you were buying a site-built structure. In truth, the process of applying for a loan and obtaining insurance is substantially similar for each. Many financial institutions – from large, national lenders to regional and local banks and credit unions – have a variety of lending programs that are specifically designed for buyers of factory-built housing. 21st Mortgage Corporation, Triad Financial Services, and C.U. Factory Built Lending are just a few of the FMHA member organizations that specialize in providing financing for manufactured and modular housing. Down payment requirements and loan terms differ from lender to lender, though in the world of manufactured housing, down payments between 5 and 10 percent, term lengths between 15 to 30 years, and affordable insurance rates are the norm.
An important aspect of financing a manufactured home is that you might not be able to qualify for a traditional mortgage if the home will be located on leased land. In that scenario, the home will be titled as personal property and financed through a personal property, or “chattel,” loan. Applying for a traditional mortgage will likely only be possible if your factory-built home is set on a permanent foundation and on land you own.
Other factors that can come into play when seeking financing and obtaining insurance for a factory-built house include:
- Your credit history
- Your income history
- Your employment status
- Your debt-to-income (DTI) ratio
- The size of your down payment
- The cost of the home
FMHA-affiliated lenders are your best source of information with regard to financing a manufactured home. And, all offer competitive rates on both land-home packages and leased land arrangements.
Contact FMHA today for additional information or assistance in finding the right lender or insurance provider for you. Or, feel free to reach out to any of our members directly.