Mortgages and Manufactured Homes: What You Need to Know

Filed under: Home Buying Tips

Manufactured homes have a few unique things that need to be considered for the mortgage. In the past, we didn’t deal with many transactions that involved manufactured homes. But, I’m seeing more of them come through. So, I thought it would be helpful to point out some of the things that you need to consider if you are buying this type of home.

Why is a Manufactured Home Unique?

Many single-family homes are built on site, sometimes called “stick homes” because the foundation will go in and then the framework is completed. A mobile home and manufactured home is essentially the same thing. Modular homes are also built off-site and trucked to the building location.

It is amazing to see what can be done with manufactured homes now! In many situations, you can’t even tell that the home wasn’t built on site. As a result, more people are choosing to invest in manufactured homes as a way to save money on new home construction.

Lending Dynamics

If you are going to get financing for the home, it is essential that the manufactured home is placed on a foundation. So, that excludes properties where you don’t own the land, such as manufactured homes placed in a park. Those are not considered real property.

Most lending options are available for these manufactured properties. So, the mortgage process is similar to buying a home that is built on site. You might be surprised to hear that there are even jumbo loans available for manufactured properties that are built here in Temecula. For example, a manufactured home could be built on high-value wine property, and the cost of the purchase exceeds the limits for conventional loans.

One thing to watch for: it is essential that you get a foundation certification before the lending can be approved. This process usually costs a few hundred dollars and often comes from the seller. But, it is a detail that will need to be negotiated in the agreement to determine who will pay for the costs.

There are great financing options if you decide to purchase a manufactured home. The most important thing that you need to do is talk to your mortgage team to identify any other details that need to be addressed.

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