Manufactured homes, also known as trailer or modular homes, are an affordable housing option for many would-be homeowners. In this week’s blog, the professionals at Lucey Mortgage Corporation will introduce you to several manufactured home financing options to consider. If you live in Mount Pleasant, SC, and are considering purchasing a manufactured home and/or lot, contact us to schedule a consultation and get a free quote.
Conventional Financing Options
Conventional loans are fully funded and insured by private lenders. They have competitive interest rates and flexible terms. They also have more stringent qualifying requirements when it comes to credit score, debt-to-income ratio, and income requirements. If you are in good financial status, this is a good manufactured home financing choice to consider. Another tip to improve your chances of conventional financing is to own the land on which your manufactured home will be placed, rather than renting space in a mobile home park or similar arrangement. In most cases, you’ll need between 5-20% down to purchase a mobile home using a conventional loan.
Nonconventional Financing Options
Nonconventional loans are insured by various government entities, including the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), and the U.S. Department of Veterans Affairs (VA). They’re privately funded, like conventional loans, but because of their federal backing, they pose less of a risk to lenders. This means lenders have less stringent approval requirements for nonconventional loan applicants. If you have a few marks on your financial record or a less-than-great credit score, nonconventional financing is a great option to purchase your manufactured home.
- FHA loans for manufactured homes have fixed interest rates and a typical term of 20 years. Borrowers may lease or purchase a lot for their manufactured homes. Limits range from $23,226 for a lot alone to $92,904 for a home and lot. There is a down payment requirement of 3.5% for borrowers with a credit score of 580 or higher and 10% for borrowers with a score of 500-579.
- USDA loans for manufactured homes may be used to purchase new or existing manufactured homes with a permanent foundation. They have fixed interest rates with terms from 15-30 years. They have no down payment requirement and fixed interest rates. There is no maximum USDA loan limit, but there is an income limitation. Homes purchased with USDA loans must be in USDA-designated rural and suburban areas.
- VA loans are only available to veterans, servicemembers, and certain other qualified borrowers. They can be used to purchase a manufactured home and/or lot with a permanent foundation. VA loans have fixed interest rates and terms form 15-25 years. They have no down payment requirement for homes valued up to $453,100 in Charleston County.
Great Financing Options for Wonderful Manufactured Homes
If you’re interested in purchasing a manufactured home, start with looking at your financing options. The team at Lucey Mortgage Corporation love helping people in Mount Pleasant learn more about mortgages so they can achieve the dream of home ownership. We offer free quotes and consultations, so contact us today about manufactured home financing.