Contrary to popular belief, manufactured home financing is NOT harder to obtain than if you were buying a site-built structure. In truth, the process of applying for a loan and obtaining manufactured home 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, however in the world of manufactured housing, down payments between 5 and 10 percent, term lengths between 15 to 30 years, and affordable insurance policy 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 manufactured home insurance 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
Buyers of today’s factory-built homes may choose from a wide array of financing options. Retailers are knowledgeable about home financing and may provide you a list of lending institutions – large national lenders as well as local companies – that can assist you obtain financing for your home. Of course, you are free to shop independently for your financing as well.
Personal property financing (home only) is readily available. Conventional, VA, FHA and other financing programs, with terms up to 30 years, are available when a home is financed as real property. Should you choose to acquire land in conjunction with the home, you can finance the home and land together. Lenders are active in financing factory-built homes because studies prove that these homes appreciate in value just like any other comparable homes. Likewise, insuring your home is easy and readily available from a host of recognized insurance companies.
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.