Finding a lender to purchase a manufactured home on a little piece of land doesn’t have to be difficult – we provide loans for them all of the time and can happily help you through the process.
There are several loan programs available that will finance a manufactured home, including:
- USDA Loans
- FHA Loans
- Conventional Loans
USDA Loans for Purchasing Manufactured Homes And Land
The United States Department of Agriculture (USDA) Guaranteed Home Loans was created to help residents who have a low to moderate, but steady income, in obtaining a home.
Types of homes approved for USDA financing:
- New or existing single-family home
- Modular homes
- Approved condominiums
- New or existing* manufactured home
In order to qualify for the USDA loan, the home must be located in an eligible rural area, must be used as your primary residence, and must be in livable condition. *New manufactured homes can qualify for a USDA loan if they are permanently installed, and existing manufactured homes will only qualify if the home was originally financed with a USDA Loan. For more information on USDA Loans, click here.
FHA Loans for Purchasing Manufactured Homes And Land
FHA modular and manufactured home loans are made by private lenders but are insured by the FHA in the case of default. These loans are ideal for those with the ability to make a mortgage payment, but who may have had some credit challenges in the past. Also, in order to qualify for a FHA loan, you will be required to pay at least 3.5% down.
FHA Modular and Manufactured Home Loans Requirements
Because FHA manufactured home loans are insured by the FHA, there are certain rules and requirements that must be met. These include but are not limited to:
- The home must be built after June 15, 1976.
- The red HUD label must be affixed to each section.
- Minimum size to be financed is 400 square feet.
- The home must be permanently affixed to a foundation that meets FHA standards.
- The home must meet the Model Manufactured Home Installation Standards.
- The lot where the manufactured home will be set must be designated or approved.
- The home must be used as a primary residence.
For more information on FHA Loans, click here.
Conventional Loans for Purchasing Manufactured Homes And Land
A conventional mortgage is a loan for the purchase of a home that is not guaranteed or insured by the federal government, but has limits set forth by Freddie Mac and Fannie Mae.
Fannie Mae and Freddie Mac do allow for conventional loans to be made on manufactured homes, however there are some requirements that must be met prior to approval.
- Built after June 15, 1976
- Have a HUD Certification Label
- Larger than 400 square feet
- The home must be permanently affixed to a foundation
Loans are available for the purchase of the manufactured home with or without the land it is permanently affixed to. For more information about Conventional Loans, click here