Manufactured Home Loans

A couple who got a manufactured home loan to buy their first home

Manufactured Home Loans

Key Topics In This Article: What Is A Manufactured Home? | Requirements | Mortgage Rates | Refinance | FAQs

As the price of traditional site-built homes rises, more and more people are turning to manufactured homes. They offer the same benefits as a traditional site-built home; however, they are typically less expensive. Many lenders throughout California offer manufactured home loans.

What Is A Manufactured Home?

A manufactured home is a structure that is completely built in a factory, then transported to a preset location and placed on a permanent foundation.1 Manufactured homes are built to standards set forth by the Department of Housing and Urban Development (HD).

There are approximately 6.7 million manufactured homes in the United States.2

Manufactured Home Loan Requirements

Here are our manufactured home loan requirements;

  • 620 or higher credit score
  • 5.00% down payment (or equity)
  • Must be classified as real property with a valid foundation
  • Single and multi-wide manufactured homes are allowed
  • Homes must be at least 12 feet wide and have a minimum of 400 square feet of gross living area
  • The manufactured homes that were previously installed in another location are not eligible
  • No manual underwriting and no appraisal waivers
  • Leasehold properties are ineligible
  • The home must have been built on or after June 15, 1976

We offer a wide variety of manufactured home loans for clients looking for an alternative to a site-built home. Our programs are attractive because they offer flexible underwriting, easy credit history, and a low down payment option.

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Manufactured Home Loan Mortgage Rates

Manufactured home loan mortgage rates are typically 0.50% to 1.00% higher than mortgage rates for traditional site-built homes. This is typical for both refinance and purchase transactions.

Manufactured home loan mortgage rates are generally fixed rate options for the following terms;

  • 30- year fixed rate
  • 20-year fixed rate
  • 15-year fixed rate

A fixed-rate manufactured home loan payment includes both principal and interest. Your interest rate and mortgage payment never change.

Manufactured Home Loans Refinance

There are several options for you when it comes to refinancing your manufactured home loan. The good news is that the process of refinancing your manufactured home loan will be a bit easier compared to the original home loan purchase process.

A key part of the refinance will be if you still have the foundation inspection and certification from when you purchased the home. If you do, and the underwriter will accept it, then the time to refinance your current loan will be much shorter.

Prior to contacting a lender for a quote, evaluate your current loan (interest rate and payment) and locate the documents you’ll need to refinance your loan.

Manufactured Home Loans FAQs

Understandably, many people have questions about manufactured home loans, and here is a quick review of the most common questions people have.

Is it hard to get qualified for a manufactured home loan?

No, and tens of thousands of people every year get pre-qualified for a new manufactured home loan. Each lender will have a standard set of guidelines to follow and then some additional guidelines specific to the loan program. An experienced loan officer can guide you through the process.

Are closing costs higher for manufactured home loans?

Yes, closing costs are generally a bit higher for manufactured home loans compared to loan programs for traditional site-built homes. But don’t worry, the increase in cost is not that high. The main increase comes from having the foundation inspected and certified, which is an underwriting requirement.

Can you do a cash-out refinance a manufactured home loan?

Absolutely! There are many options to consider if you need to do a cash-out refinance loan. Banks, direct lenders, and mortgage brokers typically offer programs that allow you to use the equity in your home for consolidating debt, home improvement, and more.

Can you have a co-signer for a manufactured home loan?

If you need a co-signer for your manufactured home loan then you’re in luck! Finding the right loan that will allow for a co-signer is key to getting this right and I highly suggest you work directly with an experienced loan officer to ensure you are able to secure the right loan program.

Are there conventional, FHA, and VA manufactured home loan programs?

The good news for people interested in a manufactured home is that you have many loan options to consider. Conventional, FHA and VA home loans all have a manufactured home loan program for both refinance and purchase transactions.

Are mobile homes & manufactured homes treated the same way?

No, they are not the same thing when it comes to mortgage lending. Here is the main difference between the two homes within the mortgage industry: manufactured homes are in a foundation, and mobile homes are not. Other than that, they are similar.

Are modular homes & manufactured homes the same thing?

No, they are not. A modular home is built in sections, which are then transported to the plot of land to be assembled on-site. Unlike manufactured homes, modular homes adhere to local building codes. A similarity between the two is that they both have a foundation.3

Can you rent out a manufactured home?

Yes, you can rent out a manufactured home, and generally speaking, you can obtain a manufactured home loan if the property is rented. However, not all lenders will lend on a manufactured home that is rented, so be sure to ask your loan officer upfront if their underwriting guidelines allow for rental properties.

Have More Questions?

If you have more questions about obtaining a manufactured home loan in California, please use the link below to contact us directly.
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Bottom Line On Manufactured Home Loans

With the dramatic rise in home values, many people are looking for alternatives to the traditional site-built home. The most popular choice among homebuyers is a manufactured home. Obtaining a fixed-rate manufactured home loan from a reputable lender is similar to the process of obtaining a home loan for a traditional site-built home.

A key part of the loan process for manufactured homes is obtaining the foundation inspection and certification report which is required. Working with an experienced loan officer will make the process easier and more efficient.


Loan Officer Kevin O'Connor

About The Author

Loan Officer Kevin O'Connor has over 17 years of experience as a Mortgage Loan Originator and is a trusted resource for mortgage education and information. He's the content creator of K.O. Home Loan Solutions and is licensed by the state of California and the Nationwide Mortgage Licensing System. He has a top rating with the Better Business Bureau, Google, Yelp, and Zillow. You can contact him at 1-800-550-5538. CA DRE #01499872 / NMLS #247447