These days, with the advancement in technology, the types of homes you can buy are numerous.
For example, tell a decade earlier, it was not that easy to buy manufactured homes. Even if you bought one, it was not easy for you to get a home loan.
These days, however, you can buy not only manufactured homes but also get a manufactured home loan as well.
We will today share the details of manufactured home loan rates. So, once you go through this article, opting for such a home and the respective loan will be easy.
Before we go further, let us look at what are manufactured home loans.
What Is A Manufactured Home Loan?
Manufactured home loans are loans that banks and financial institutions grant you for movable homes and firms manufactured at a different place and installed on-site.
Not every lender provides home loans for such a home. That is why there is a separate category known as manufactured home loans.
Today, we will shed light on various lenders offering loans in this category.
Before we go any further, it is time to understand who can get a manufactured home loan and who cannot.
Can You Get A Manufactured Home Loan?
There are a few requirements to get a manufactured home loan. You can only get one when the home is at least 400 ft². Not only that, it should be on a permanent foundation. When you’re paying real estate taxes, then only you can get such a loan. Additionally, you can get a manufactured home loan only after a proper audit and appraisal of the home.
Thus, if you meet these conditions, you can certainly get a manufactured home loan.
Apart from these conditions, your income statement and credit score are certainly taken into account.
Now that you are aware of who can and who cannot get a manufactured home loan, it is time to understand the type of manufactured homes you can buy. Once you know that, we will cover the loans according to the type of manufactured homes.
Types Of Manufactured Homes
There are essentially two types of manufactured homes. We will go into the details of all these below.
1. Moveable homes
Manufactured homes can be movable as well. These can be on wheels and on vehicles. These are often in the form of RVs.
It is the 1st type of manufactured home which you can buy.
2. Secured homes
Manufactured homes also have a secure foundation. In that case, the homes are manufactured at a different location, probably in a factory or construction site. They are molded at the site and installed there.
These cannot be moved around.
These are the 2nd type of manufactured homes which you can buy.
Now, we will share with you how you can get loans for both of these types of manufactured homes.
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How To Get A Loan For Moveable Homes?
Now, we will highlight a few options through which you can get loans for movable manufactured homes.
1. FHA Title I program
The first option is the FHA Title I program. When buying a manufactured home through this program, you need to have a 5% down payment. Also, the condition of the home needs to be almost new.
Federal Housing Administration backs these loans. They are perfect for RVs as well as other mobile home vehicles.
The good news is that the interest rates are negotiated between the lenders as well as the borrowers. It means that if you have a good credit score, you can get great interest rates as well.
However, the rates are generally higher than traditional mortgages. That is because such homes are risky as well.
The good news is that once you negotiate the rate, the rate is fixed for the entire loan tenure.
The limit of these loan types is as follows
- For the manufactured home, you can get loans up to $69,678.
- For the entire manufactured home lot, you can get loans up to $23,226.
- For the manufactured home and lot, you can get loans up to $92,904.
The terms are 20 years for a single home and lot, 15 years for the manufactured home and lot, and 25 years for the multi-wide manufactured home and lot.
This is your 1st option when buying a movable home and are looking for a loan for the same.
2. Chattel loans
Chattel loans are another option that you have when buying movable manufactured home loans. The terms and conditions of this loan are similar to an automobile loan. The mobile home itself serves as collateral in such a loan.
Only when you do not plan to buy the plot to park in a mobile home can you get this type of loan.
The down payment which is needed for the same is 5%. The advantage of such loans is that since the mobile home is used as collateral, the interest rates are extremely competitive. They are lesser than personal loans but still higher than traditional mortgages.
The tenure of these loans is on the higher side. That is why; the monthly payments are higher as well.
It is another option that you have when you want to buy a manufactured home.
3. Personal Loans
If you’re not able to get a traditional mortgage, you might think about getting a personal loan as well. The only problem with personal loans is that the interest rate is on the higher side.
However, with personal loans, you need not worry about buying a movable manufactured home or a fixed one.
The personal loan will be granted on your credit score and repayment credibility.
If you meet the criteria, the approval process is relatively quick as well.
Thus, this is another option that you have when you want to get a home loan for a manufactured home.
4. Manufactured Nationwide
Manufactured Nationwide is owned by Magnolia Bank. The network is spread across 50 different states. Also, the lender works with various government programs as well. That is why getting loans for manufactured homes is certainly easy.
As long as you have a credit score of 620 or higher, you can get a manufactured home loan through them.
The interest rate, however, is a bit higher than the government programs. The usual interest rate is between 4% to 6%.
It is another lender which you can contact if you want to get manufactured home loans.
5. ManufacturedHome.Loan
ManufacturedHome.Loan offers the most competitive rates when it comes to home loans for manufactured homes.
With the help of an online platform, you can easily find out whether you qualify for a loan from this lender or not.
The downside, however, is that it approves applications only with a 700 credit score or higher.
In case you are enrolling for any government-backed program with this lender, you can get approval only if your credit score is 600 or above.
The amount of loan can be as low as $75,000 and as high as $2 million. The down payment can be 0%.
With an interest rate below 4%, it is certainly a good lender if you want to buy a manufactured home.
All these features make it one of the best lenders for manufactured homes.
6. 21st Mortgage Corporation
Do not have the perfect credit score?
If so, this lender can help you out.
It loans to people who want to buy manufactured homes and do not have a perfect credit score.
The lender has a network spread across 46 states; it is easy for you to get a loan for manufactured homes.
The fixed-rate loans that they provide ensure that you will not have to worry about increasing monthly payments.
Another advantage of this lender is that it does not have a minimum credit score requirement. It means that you can apply for the loan without any worry.
Another advantage of this lender is that you can apply for buying pre-owned and new mobile loans as well.
The minimum amount is $22,000 if you’re directly applying with the lender.
The interest rate, however, is a bit on the higher side. You might have to pay between 6% to 12%. That is because there is no minimum credit score requirement.
The down payment varies depends on your credit score. For example, if you have a credit score of 570, you might have to make a 35% down payment. As your credit score improves, the percentage of down payment decreases.
With the online application process, getting loan approval is quick and easy. That is why; it is an excellent lender if you do not have a perfect credit score.
7. eLend
eLend is one of the few lenders that provide 100% financing on manufactured homes if you apply in conjunction with government-backed programs.
The down payment can be 3.5%, depending on your credit score. As long as you have a credit score of 620 or higher, it is easy for you to get approval.
The fixed-rate mortgage on offer ensures that you will not have to worry about your payments increasing.
However, if you are playing in conjunction with the government programs, the approval can take a month as well.
Thus, if you’re looking for 100% financing, there is no better option than this lender.
8. Vanderbilt Mortgage and finance
Vanderbilt Mortgage and finance should be the lender of choice if you’re going through manufacturer financing. Chances are, the manufacturer will have a tie-up with them.
The lender offers various types of mortgages light fixture, adjustable, FHA, and so on. It can provide you with a loan of up to $600,000 as well.
As long as you have a credit score of 550 or above, it becomes easier for you to get approval. The down payment can be 3.5% as well.
The entire process can take three weeks to 6 weeks.
The higher your credit score, the lower will be the interest rate. When you have a credit score of around 580, the interest rate is usually between 8% to 10%.
Thus, if you’re looking for manufacturer financing, this one is undoubtedly a good choice.
In case you’re buying a movable manufactured home, these are the financing options that you have.
How To Get a Loan For Foundation-Secured Homes?
Like we have listed above, manufactured homes can be of 2 types. The type which we are highlighting now is the second one. In this, the homes are manufactured at a different location and after that installed on site. Once they are installed, the foundation is secure, and you cannot move them around.
When you’re looking for a manufactured home loan for this type, you can go with Fannie Mae, Freddie Mac, and other programs that are backed by the government.
When you’re going with Fannie and Freddie, you need to make a 5% down payment. However, the interest is higher than the traditional mortgages.
FHA loans also allow you to buy a manufactured home with a 3.5% down payment. You need to have a credit score which is 580 or more. In case your credit score is lower than that but above 500, you can buy a manufactured home and get a loan with a 10% down payment.
A few additional programs like the VA loan program in USDA offer you loans for such manufactured homes.
Besides that, all the options that we have highlighted above issue loans for foundation-secured manufactured homes.
Thus, whether you’re looking for movable manufactured homes or foundation secured ones, you can easily use these financing options.
Now, we will share with you answers to some FAQs related to manufactured homes.
Frequently Asked Questions (FAQ)
Who makes the highest quality manufactured homes?
Companies like Kit Custom Homebuilders, Sunshine Homes build some of the best quality manufactured homes.
Can you get a 30-year loan on a manufactured home?
Yes, you can get a 30-year loan on a manufactured home. It is the longest tenure that you can opt for.
Is it hard to get a loan for a manufactured home?
As long as you have a credit score over 500 and have a repayment capability, you can get a loan for a manufactured home. It is not difficult at all.
Why you shouldn’t buy a manufactured home?
The value of the manufactured home can depreciate with time. It is one of the reasons why you shouldn’t buy a manufactured home.
Conclusion
So, if you’re buying a manufactured home, our guide above will let you know about the lenders and the rates they offer. Once you go through this guide, it will become easier for you to buy one and get a home loan.