How To Get Financing For A Manufactured Home: A Quick Guide

Are you thinking about buying a manufactured home, but you might get worried when considering financing options? Figuring out how to get financing for manufactured homes to build your dream home is a big hurdle. 

But the good news is that there are plenty of financing options to make it possible. From FHA and VA loans to USDA financing and personal loans, each option has its perks depending on your needs.

Manufactured homes are affordable and flexible options for first-time home buyers, retirees, or others. But when there’s a time for the financing process, things get worse. If you are new to this, no need to worry. This guide will help you with everything about financing a manufactured home. 

What Does Financing Mean For A Manufactured Home?

Financing simply means borrowing money from authentic resources to buy a house or other things. The buyer owns the property from the start, but they repay the loan amount in monthly installments as per the agreement. This process is tricky at the start because it involves a huge amount of paperwork or documentation and much more. When I bought a manufactured home for the first time, I faced the same issue, but in the end, it turned out to be beneficial for me. 

Several lenders prefer different financing options based on your income, taxes, whether the house is on the land you own, and much more. But there are plenty of financing options or best-manufactured home lenders out there you can choose from to make your process easier. 

Can You Get Financing For A Manufactured Home?

Yes, you can easily get financing for your manufactured home. In fact, there are several financing options available and you can choose any based on your current situation, budget, and need. You can select any FHA, USDA, Conventional, and VA loan programs for you while communicating with the best lenders with good repute in your area. 

There are plenty of lenders who specialize in handling home improvement financing. You can contact Wyatt “Lee” Arp Jr., the best-licensed mortgage lender, to get financing for a manufactured home at affordable prices. 

Types Of Financing Options For A Manufactured Home

Different types of financing or loan options are available for manufactured homeowners. Here are some of them:

FHA Loans

FHA (Federal Housing Administration) loans are the best option provided by the government. This makes financing options a little bit more accessible for those who have lower credit scores or smaller down payments. More homeowners opt for this option when buying newer or used manufactured homes. This is a more lenient option to consider. 

VA Loans

This type of VA (Veterans Affairs) loan is appropriate for veterans or active military members. This financing option comes with no down payment and lower interest rates. That’s why it is considered an amazing option for those who want to make the perfect to buy a manufactured home with a lower upfront cost. 

USDA Loans

The USDA (United States Department of Agriculture Loans) are specifically designed for rural areas that offer 60 to 70% low or down payment options to their citizens or homeowners. When anybody wants to move to quieter, or more rural areas with low payments in hand, this loan program is best for them. 

Conventional Loans

These are the most standard home loans for manufactured homes, which almost everyone recognizes. Typically, they have long-term financial obligations at competitive interest rates and a huge down payment requirement. Personally, conventional loans work best when you’re actually buying a manufactured home and affixing it to land that you own.

Chattel Loans

These home loans are specifically designed for homes that are usually not attached to land such as mobile home parks. They are quite easy to get and don’t need much paperwork. Such loans contain high interest rates as compared to other loan options. This is a more flexible option for anyone considering manufactured housing lending. 

Personal Loans

In any case, personal loans could help out in a tight spot that doesn’t want to adopt the conventional method. Although interest rates tend to be slightly higher in comparison to a home loan. Use personal loans only when you want to get some urgent cash for a smaller manufactured home.

Fannie Mae MH Advantage program

The Fannie Mae MH Advantage program is also the best option for financing a manufactured home. This loan program offers benefits such as lower interest rates and payment requirements. It allows buyers to secure manufactured home mortgage loans for homes built to higher standards. This makes them eligible for conventional loan terms. 

How Do You Get Financing For A Manufactured Home?

To get financing for manufactured homes is almost similar to financing a traditional home. Although it seems like a tough option at first, breaking it down into short steps can be easier for every homeowner. These steps include:

Step 01: Assess Your Financial Situation

Before getting into the loan process, take a look at your credit score, income, and savings. Understanding where you stand financially will help you determine what kind of manufactured home loans you’re eligible for. Plus, it’ll give you a better idea of how much you can afford to borrow and what your monthly payments will look like.

Step 02: Choose The Right Loan Option

There are different loans for manufactured housing available, like FHA, VA, and conventional loans. Research each type to see which one suits your situation best. Whether you’re looking for lower interest rates or a smaller down payment, this step is crucial to finding the right fit for your needs.

Step 03: Gather Required Documents

Lenders will need to see some paperwork to evaluate your application. Expect to provide things like proof of income, tax returns, and information about your debt. The more organized you are, the smoother the process will go, and trust me, you’ll appreciate that when you’re in the middle of it!

Step 04: Apply For Pre-Approval

Once you’ve selected a lender and loan type, it’s time to apply for pre-approval. This shows sellers you’re serious and helps you understand exactly how much you can borrow. It also gives you a sense of your potential interest rate, so you know what to expect when it comes time to sign the deal.

Step 05: Find Your Dream Home

Now that you’ve got your finances in check, it’s time to shop for your manufactured home! Whether you’re looking for a new or used one, make sure it meets your lender’s requirements, especially if you’re opting for specific trailer house financing. 

Step 06:  Finalize The Loan

Once you’ve chosen your home, the lender will finalize the loan terms and schedule an appraisal. After everything checks out, you’ll sign the loan documents, and you’re officially on your way to owning a manufactured home. All that’s left is moving in and making it your own!

What Is The Average Loan Term For A Manufactured Home?

The average loan term for a manufactured home is between 15 to 30 years, depending on which type of loan option you prefer. Usually, the manufactured home loan range is 20 years but if you consider chattel loans loans may be shorter than others like 15 years. 

But the best thing is that the longer the loan terms are, your monthly installment payment will be lower. But your interest rate will be a little bit higher. The financing option is all about finding a balance between manageable payments and how much you can pay for it. 

Tips For Improving Loan Approval Chances

If you want to enhance your financing approval chances, then below are some tips that you must consider:

• Check your credit score for better loan terms.
• Save for a larger down payment to reduce risk.
• Maintain a steady income to show financial stability.
• Lower your debt-to-income ratio by paying off debts.
• Choose the right manufactured home loans for your needs.
• Apply for pre-approval to speed up the process.
• Ensure the home meets lender requirements to avoid delays.

Conclusion

Financing is the best option for anyone considering buying a manufactured home but has a low budget. Different lenders offer several types of owning a property at an affordable price that meets your current budget needs. It’s best to consider a lender who is specialized in their field and has years of experience in it.
Spark Homes offers different loan options for those who want to get manufactured homes by selecting any of our financing options. You can contact our lender Lee directly to get any property from our community. Just contact us at (830) 251-2110 for further information. 

FAQs

Is it hard to finance a manufactured home?

It’s a little bit harder as compared to traditional site-built homes. But with the right loan type, the process is easier. 

What type of loan is best for a manufactured home?

FHA, VA, USDA, and conversational loans are the best for homeowners to get a manufactured home. 

What lenders finance manufactured homes?

Several banks, credit unions, and specialized lenders offer a financing option for manufactured homes. 

What is the oldest manufactured home I can finance?

The oldest manufactured homes that are built after 1976 and they meet the HUD standards.