FHA is a great way to finance manufactured homes
Manufactured homes can offer low to moderate income families in NC, SC, and Virginia affordable housing. But, manufactured home lending is going to be more strict than most other property types. Higher foreclosure rates is the primary reason. Additionally, there is a greater chance of depreciation in appraised value compared to stick built homes. Because of these reasons, many lenders have exited the manufactured home lending business. Team Move still offers VA home loans and FHA mortgages to finance the purchase or refinance of a doublewide, manufactured home. Both the borrowers and the property must meet the following manufactured home guidelines plus other applicable areas. Our Manufactured Home FHA Mortgage offers 30 year fixed rate terms. Additionally, FHA financing is only for a primary residence.
Our FHA Doublewide Manufactured Home Guidelines:
- Doublewides only & manufactured after June 15, 1976
- Must have an acceptable foundation per a structural engineer inspection
- Rural manufactured homes have additional requirements. These include a home inspection plus built in 1990 or after
- 660 Minimum credit score (case by case exceptions)
- Purchases allowing as low as 3.5% down payment
- Minimum loan amount is $75,000 (case by case exceptions)
- Now allowed: Escrow Holdback for repairs, non-occupying co-borrowers, refinancing
Guidelines are subject to change.
If you are looking to purchase a manufactured home, make sure to check key areas of the home. In the first place, find the HUD tags located at the end of the home. Appraisers, attorneys, and lenders need the HUD numbers to clearly identify the home. Additionally, ensure the wheels, tongue, and axles are removed from the home. Then, we require that the perimeter foundation is block or brick skirting.
Author: Russell Smith
Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.