805.603.7655
805.603.7655
Navigating Manufactured Home Financing: A Comprehensive Guide
Navigating Manufactured Home Financing: A Comprehensive Guide
What are Manufactured Homes?
Manufactured homes, often referred to as mobile homes are houses built in a factory and then transported to a designated site for assembly. They differ from traditional homes in both their construction process and financing options. Manufactured homes can be placed on leased land or land owned by the homeowner, further diversifying the financing routes available.
What are Manufactured Homes?
Manufactured homes, often referred to as mobile homes are houses built in a factory and then transported to a designated site for assembly. They differ from traditional homes in both their construction process and financing options. Manufactured homes can be placed on leased land or land owned by the homeowner, further diversifying the financing routes available.
Financing Options for
Manufactured Homes on Leased Land
Personal Property Loans
These are typically used when the home will be located on leased land, usually in a mobile home park. Because you are only financing the home itself and you have a lease for the property it is placed on , the loan would be a personal loan, also known as a chattel loan. There are several mobile/manufactured “home only” lenders that offer a variety of terms.
Financing Options for Manufactured Homes on
Leased Land
Personal Property Loans
These are typically used when the home will be located on leased land, usually in a mobile home park. Because you are only financing the home itself and you have a lease for the property it is placed on , the loan would be a personal loan, also known as a chattel loan. There are several mobile/manufactured “home only” lenders that offer a variety of terms.
LEASED LAND PARK LENDERS
Will Cunningham
805.692.4359
865.292.2120
Taylor Dye
805.837.9002
LEASED LAND PARK LENDERS
Will Cunningham
805.692.4359
865.292.2120
Taylor Dye
805.837.9002
Need Guidance Regarding Financing Your Project?
Provide a few details and we can get you the information you need!
Financing Options for
Manufactured Homes on Owned Land
Real Estate Loans
Manufactured homes properly installed on land you own become real estate as opposed to
personal property, and this opens up a lot of financing options.
Conventional Loans
For manufactured homes placed on land that is owned by the borrower, some lenders offer conventional mortgage loans for manufactured homes. The terms can be more stringent, with requirements for a permanent foundation and adherence to specific HUD standards.
FHA Loans
The Federal Housing Administration (FHA) offers loans for manufactured homes through its Title I and Title II programs. These loans are more lenient in terms of credit scores and down payments, making them accessible to a broader range of borrowers.
Need Guidance Regarding Financing Your Project?
Provide a few details and we can get you the information you need!
Financing Options for Manufactured Homes on Owned Land
Real Estate Loans
Manufactured homes properly installed on land you own become real estate as opposed to
personal property, and this opens up a lot of financing options.
Conventional Loans
For manufactured homes placed on land that is owned by the borrower, some lenders offer conventional mortgage loans for manufactured homes. The terms can be more stringent, with requirements for a permanent foundation and adherence to specific HUD standards.
FHA Loans
The Federal Housing Administration (FHA) offers loans for manufactured homes through its Title I and Title II programs. These loans are more lenient in terms of credit scores and down payments, making them accessible to a broader range of borrowers.
VA Loans
For veterans and active military members, VA loans present a no-down-payment option. These loans, guaranteed by the Department of Veterans Affairs, can be used for both the purchase of the land and the manufactured home, provided it will be the borrower's primary residence.
USDA Loans
The USDA offers loan programs for the purchase or construction of manufactured homes in specific eligible rural areas. These loans are not exclusively for agricultural or farming operations, in fact there are eligible rural areas throughout California that are what many would consider a typical neighborhood.
Construction Loans
For the buyer that would like to develop an empty private property lot with a manufactured home, there are lenders that will offer a construction loan for the purchase of the land, the
development of the lot and the completion of the manufactured home.
VA Loans
For veterans and active military members, VA loans present a no-down-payment option. These loans, guaranteed by the Department of Veterans Affairs, can be used for both the purchase of the land and the manufactured home, provided it will be the borrower's primary residence.
USDA Loans
The USDA offers loan programs for the purchase or construction of manufactured homes in specific eligible rural areas. These loans are not exclusively for agricultural or farming operations, in fact there are eligible rural areas throughout California that are what many would consider a typical neighborhood.
Construction Loans
For the buyer that would like to develop an empty private property lot with a manufactured home, there are lenders that will offer a construction loan for the purchase of the land, the
development of the lot and the completion of the manufactured home.
Alt Income Doc Loans
There are also lenders that offer qualification based on alternative documentation, typically for self-employed borrowers. For example, a business owner can qualify using bank statements or a Profit & Loss statement instead of tax returns. For real estate investors there are DSCR loans for
manufactured homes where rental income is used to qualify instead of personal income.
ADU Financing
ADU financing is a different financing situation altogether. As a homeowner, you have options to get a HELOC (Home Equity Line of Credit), a second mortgage, or even an "equity share agreement" that allows you to convert a portion of your equity to cash without monthly payments. You can also use a cash out refinance of your existing mortgage, or a FHA Reverse mortgage (HECM) if you have sufficient equity and satisfy the other requirements. The State of California may also have a grant available to help pay for part of the ADU if you qualify and if the funds are available at the time.
Alt Income Doc Loans
There are also lenders that offer qualification based on alternative documentation, typically for self-employed borrowers. For example, a business owner can qualify using bank statements or a Profit & Loss statement instead of tax returns. For real estate investors there are DSCR loans for
manufactured homes where rental income is used to qualify instead of personal income.
ADU Financing
ADU financing is a different financing situation altogether. As a homeowner, you have options to get a HELOC (Home Equity Line of Credit), a second mortgage, or even an "equity share agreement" that allows you to convert a portion of your equity to cash without monthly payments. You can also use a cash out refinance of your existing mortgage, or a FHA Reverse mortgage (HECM) if you have sufficient equity and satisfy the other requirements. The State of California may also have a grant available to help pay for part of the ADU if you qualify and if the funds are available at the time.
OWNED LAND Lenders
Taylor Dye
805.837.9002
Linda Kay Blecher
818-292-2667
OWNED LAND Lenders
Linda Kay Blecher
818-292-2667
Taylor Dye
805.837.9002
The
Benefits & Challenges
Benefits:
● Affordability: Manufactured homes are often less expensive than site-built homes.
● Flexibility: Owners can choose to place their home on leased land or their own property.
● Variety: There is a wide range of sizes and layouts to fit different needs and preferences.
Challenges:
● Older homes built before June 15, 1976 are difficult to finance.
● Homes on leased land may be subject to rent increases, park restrictions, etc.
The
Benefits & Challenges
Benefits:
● Affordability: Manufactured homes are often less expensive than site-built homes.
● Flexibility: Owners can choose to place their home on leased land or their own property.
● Variety: There is a wide range of sizes and layouts to fit different needs and preferences.
Challenges:
● Older homes built before June 15, 1976 are difficult to finance.
● Homes on leased land may be subject to rent increases, park restrictions, etc.
