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I’m thinking about buying a manufactured home (MH) because it’s all I can afford & think the monthly cost could be less than rent is now. I currently pay $ 875 a month. MH is year 2000, 3bd 2ba, 1295sf with all appliances & extras listed for $ 39,900. It appears to be in very good condition. Does this seem like a fair price or high? I’m a 1st time home buyer & wonder if I am still eligible for same mortgage loans offered for a regular home with property? Does the bank even offer a mortgage loan on MH in a park charging lot rent? I want to be a smart consumer. I will appreciate any and all responses. Thanks

5 Thoughts on what kind of financing do banks offer on manufactured homes and over what number of years to pay it back?
  1. Reply
    mark
    May 1, 2011 at 7:43 am

    Yes, you can get a regular mortgage.

    —-edit—-

    The real-estate idiot below does not really get your question. You are buying a manufactured home (not a mobile home). The point about the land by another poster is somewhat true however. You either own the land and get a mortage on the house, or you buy a package that includes land

    In either case, the ultimate loan is a mortgage

  2. Reply
    AnnaBelle
    May 1, 2011 at 8:17 am

    Yes, it’s financed the same. you can also finance the land you will be putting it on. I own a manufactured home, and honestly I sometimes forget it is not a regular house.

  3. Reply
    Beverly S
    May 1, 2011 at 8:21 am

    No- you have to own the land that it’s on to get a mortgage, mobile home parks are not acceptable- also a moved mfg. home will not qualify for a mortgage. Most mortgage companies & banks insist that it be a double wide, on a permanant block foundation on land that you own. Even those are hard to get loans for now.

  4. Reply
    hvholli
    May 1, 2011 at 8:24 am

    a mobile home in a park is considered a “chattel” loan much like buying a car. It is not considered “real property” as there is no “real estate” attached.

    Manufactured home loans in Texas right now are very hard to obtain…with or without land. The largest manu lender in Texas was shut down in July by HUD for possible regulatory issues. Because of that and the fact that manu’s tend to decrease in value rather than increase, lenders are leary of loaning on them especially this day in time with the “mortgage crisis”. They are not impossible, just difficult.

    I would consider a smaller site built home that is affordable, rather than a larger mobile or manu home simple because of value, resale in the future, craftsmanship, etc.

    Happy House Hunting!

  5. Reply
    Mark
    May 1, 2011 at 9:00 am

    Yes Financing is available to purchase a manufactured home in a park (where the land is not attached). Just like the previous answer these loans are often referred to as chattel loans (or personal property loans).

    With that said, financing a mobile home is a park is completely different than a standard stick built home on land. There are very few lenders that will financing a home like this and you may have to deal with a national lender (instead of a local broker), but nonetheless there is still financing available.

    Here is the basics that you will need to know about financing a manufactured home in a park;

    Term = determine largely be loan amount, age of home and if it is a singlewide or double wide. As a general rule of thumb the typical loan for a doublewide is between 15-20 years. If your loan amount is above $ 50-60k it is possible with many lenders to get a 25 years term. Singlewides will generally be given a loan term of 10-15 years.

    Credit Scores = With very few lenders out there that finance mobile homes in parks the credit requirements are tighter. Fico scores under 640 will (in general) not be approved.

    Downpayment = downpayment requirements can vary based upon the borrowers credit score, downpayment and age of the home. Minimum down payment is 5%

    Closing costs = vary by lender, but generally can be financed into the loan.

    Interest Rate = vary by lender. Rate is typically determined by the borrowers credit score, downpayment and mortgage term. Basically the higher the credit score, the larger the downpayment and the shorter the term equals a better interest rate. With all of that said, well qualified borrowers with strong downpayments could get an interest rate as low as 7% and marginal borrowers with a small downpayment can easily be higher than 10%.

    While these rates sound high, the important thing to remember is that the loan amounts are typically small. Therefore even if you find a rate that is 2% higher, your monthly payment may only be $ 5 more.

    If you are looking for a loan to purchase a mobile home, I would recommend http://www.CompareMobileHomeLoans.com. They offer a free service where you fill in a basic form and they email you back a list of manufactured home lenders that meet the criteria you set forth.

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