Financing a manufactured home that has been moved
Fannie Mae and Freddie mac do not allow for manufactured homes that have been moved from their original installation to be financed with conventional financing. If you are trying to use FHA financing they will not allow this as well. If you are a veteran however, the VA will allow you to finance a manufactured home that has been moved one time. VA financing is the only traditional type of financing that allows this.
With over 200 lenders at our disposal we do however have an option to finance manufactured homes that have been moved!
It is not traditional financing though so there are some major restrictions. The first being that you must have 30% down. The max loan to value is 70%. The minimum loan amount is $100,000, so that minimum purchase price must be $154,000. The second big requirement is the home must a double wide or larger! See below more restrictions. Keep in mind this is for everyone using financing that is not a veteran.
Requirements to finance a manufactured home that has been moved
- The home must be built on June 15th of 1976 or newer.
- It must be a double wide or larger.
- It must be tied down (permanent foundation).
- You must own the land, it can not be in a park or in a PUD, no HOA dues.
- The title to the manufactured home must be retired before closing, (not at closing).
- 70% max loan to value on purchases, and 65% max loan to value on cash out refinances.
- The minimum loan amount with this program is $100,000.
Documenting income
We have the ability to finance these homes as investments properties as well. Whether you are purchasing the home for a primary residence or an investment property you can use bank statements to qualify if you are self employed. You can also do what is called a DSCR loan, which stands for debt service coverage ratio loan. That means if its going to be an investment property you can qualify based on rent or potential rent that the property will garner. Other than that we can of course review your tax returns to qualify.
What is the draw back on financing a manufactured home that has been moved?
Because you can not finance these properties with traditional financing the amount of lenders out there who will finance them are few and far between. If they do finance them often they are difficult to work with or slow. Higher interest rates and higher closing costs come with these unique products, but we do however aim to provide a seamless experience for our clients. Certain lenders in this territory are notorious for being slow, but we aim to expedite the lending process as quickly as possible. Keep in mind if the title has not been retired it will need to be done before closing. This can be a time consuming process.