If your manufactured house meets the guidelines above, you may be able to finance it with a traditional home mortgage. Mortgage loan options for manufactured homes In either case, upon arrival, the home will need to be attached to a permanent foundation before it qualifies for a conventional loan or for most government-backed loans.Īlso, the home can’t be located in a mobile home park or on land someone else already owns and won’t be selling to you. Or they can be built off-site and towed to their permanent location.
Manufactured homes can arrive in pieces and be assembled on site. Fannie Mae’s conventional loan for manufactured homes, for example, requires the home to have at least 600 square feet of living space. Most manufactured homes, especially double-wide or modular homes, easily meet this requirement.īut some types of loans for manufactured homes require more space. The home you’re buying must have at least 400 square feet of living space to qualify for a manufactured home loan. Minimum square footage for a manufactured home loan If you’re buying a new home from a dealer, you’ll need to place the home on land you own or land you’re buying. In addition, a home on leased land won’t be considered real property. If the taxes go to the DMV, the home is considered personal property. How can you learn whether an existing manufactured home is real or personal property? By finding out how the current owner pays taxes. Property that can be moved and used elsewhere - a car, a boat, or a true mobile home, for example - is considered personal property. “Real property” must include land, along with property that can’t be quickly or easily removed from the land - things like a house, an in-ground pool, or a paved driveway. Let’s look at these criteria a little more closely before you start making loan applications: Real property versus personal property Be permanently attached to a foundation and on land that you also own.Have at least 400 square feet of living space.Be ‘real property’ and not ‘personal property’.Along with following HUD’s post-June 15, 1976, safety regulations, the home must: The manufactured home will also have to qualify for the mortgage. To get a mortgage loan on a manufactured home, you’ll have to qualify as a borrower by meeting minimum credit score, income, and down payment requirements - just like you would if you were buying a site-built home. If the home can’t clear a few more qualifying hurdles, you may need an alternative form of financing. Homes built to HUD’s safety standards usually have a “HUD tag” attached to them.īut, even if the manufactured home you’re buying was built to HUD’s standards, it may not qualify for a traditional mortgage. That June day in 1976 is important because it’s when the Department of Housing and Urban Development (HUD) started regulating the safety of manufactured homes. And if not, there are some other alternatives
These homes might qualify for a mortgage loan. Manufactured homes: Built on or after June 15, 1976, following government safety regulations.Mobile homes: Built prior to June 15, 1976, these homes will not qualify for a mortgage loan it may be hard to get any secured financing at all.The difference matters when you’re trying to finance a new home: People tend to use these terms interchangeably, but there is a difference. What’s the difference between “mobile homes” and “manufactured homes?”
Your best option will depend on your eligibility as a borrower, the type and age of the home you’re buying, and whether your new home is considered ‘real property’ or ‘personal property.’įinancing manufactured homes versus mobile homes FHA loans, along with loans backed by the USDA and VA, could also finance a manufactured home. Some manufactured homes qualify for conforming mortgages, the standard financing option for traditionally-built homes. And not all lenders offer this type of home loan. It’s possible to get a manufactured mortgage but the process is different from financing a traditional, site-built home. Octo12 min read Financing your manufactured home
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