Has Anyone bought a mobile home before?

[Anonymous]

Has anyone bought a mobile home before financed? Was the process the same as a fha or conventional? What was the process? Thank you in advance. Example: down payment, credit score, collections?

[kilroy8]

I looked into it when I was young. It is not really related to a mortgage, or at least wasn't then. They have their own methods and requirements that are more like an RV or Boat purchase - an installment loan. There is a whole different finance industry built around them and most of the companies involved specialize in the area.

[dynamicvb]

I had looked into this a while back. If its new then it works like a car loan with their own lenders. A lot of them will let you use your land as a down payment assuming you have land to place it on. If its already set up, then that is more difficult

I think you may do a USDA as long as it's secured permanently to the foundation and its in an area considered rural, but not sure.

I was looking at one property that just had a mobile home on it in addition to a home and was told I would have to get the mobile home moved before they could even do a conventional mortgage on the property. You can get local banks to sometimes do a  loan of no more than 10-15 years on one that is set up and there may be some larger ones that would do it, but I never found any that would really want to touch this in my search a while back.

[homeloanexpert]

Hello,

First there is a clear distinction between Mobile Homes, Manufactured Homes, and Modular. Know that the latter is the easiest to lend on and will hold its value better than the other previous ones. If you are going to buy a Manufactured Home that will be on its own land, then financing will be doable. If you’re buying a Mobile is a park or on a leased lot, that will be challenging, and you will have fewer lending options.

What makes a Manufactured Home no longer a Mobile, is the permanent foundation is placed on. There are Type 1 and Type 2 foundations systems. One is HUD Approved (for FHA lending purposes) and the other is for VA, USDA, and Conventional. The down payment and lending criteria is different for each loan program, the most complicated be for an FHA. As a lender for Manufactured and Modular homes, these loans can be simple if you go with an experience Loan Officer so vet your LO well.

Below is a quick overview for lending:

1.) VA - $0 Down Payment. Seller can pay all buyers closings and can pay up to 4% in concessions to cover paying debts, collections, charge offs, liens, etc. Simple rules regarding foundations.

2.) FHA - Standard FHA 203b is 3.5% down unless you qualify for a DPA (down payment assistance. FHA required an Engineer Certification to verify that the property’s foundation system meet HUD latest guidelines. Seller can pay up to 6% towards buying closing cost.

3.) USDA – The RDL has a Pilot Program that allow MH’s in specific states. USDA requires $0 down payment. Requirements vary from lender to lender but are similar to an FHA loan. Seller can pay all buyer’s closing costs.

4.) Conventional – New changes allow down payment as low as 3%. If not a first-time buyer or income exceed program limits, that are other loan programs require 5% down. Seller can pay up to 3% of the buyer closings.

Hope this helps! Let me know if you have any questions or need further assistance.

[me12345]

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@homeloanexpert wrote:

Hello,

First there is a clear distinction between Mobile Homes, Manufactured Homes, and Modular. Know that the latter is the easiest to lend on and will hold its value better than the other previous ones. If you are going to buy a Manufactured Home that will be on its own land, then financing will be doable. If you’re buying a Mobile is a park or on a leased lot, that will be challenging, and you will have fewer lending options.

What makes a Manufactured Home no longer a Mobile, is the permanent foundation is placed on. There are Type 1 and Type 2 foundations systems. One is HUD Approved (for FHA lending purposes) and the other is for VA, USDA, and Conventional. The down payment and lending criteria is different for each loan program, the most complicated be for an FHA. As a lender for Manufactured and Modular homes, these loans can be simple if you go with an experience Loan Officer so vet your LO well.

Below is a quick overview for lending:

1.) VA - $0 Down Payment. Seller can pay all buyers closings and can pay up to 4% in concessions to cover paying debts, collections, charge offs, liens, etc. Simple rules regarding foundations.

2.) FHA - Standard FHA 203b is 3.5% down unless you qualify for a DPA (down payment assistance. FHA required an Engineer Certification to verify that the property’s foundation system meet HUD latest guidelines. Seller can pay up to 6% towards buying closing cost.

3.) USDA – The RDL has a Pilot Program that allow MH’s in specific states. USDA requires $0 down payment. Requirements vary from lender to lender but are similar to an FHA loan. Seller can pay all buyer’s closing costs.

4.) Conventional – New changes allow down payment as low as 3%. If not a first-time buyer or income exceed program limits, that are other loan programs require 5% down. Seller can pay up to 3% of the buyer closings.

Hope this helps! Let me know if you have any questions or need further assistance.

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I just want to add to this excellent post, that anything that you want to get a mortgage on must include the land, and be built in 1976 or later, and be a at least a Double wide,  and of course as mentioned, be permanently attached to a foundation....

Several other "Hoops" to jump through with these, so use an LO with experience doing these. (it will save you a lot of headaches)

They are a great alternative for housing in high cost areas.

Thanks,