Understanding Manufactured Home Financing

Often mistaken as mobile homes or trailers, manufactured homes are distinct entities. These residences are factory-assembled and placed permanently on a designed frame. While only accounting for a small percentage of urban housing, manufactured homes persist as a budget-friendly choice for aspiring homeowners.

Unpacking Manufactured Homes

A product of factory construction, manufactured homes provide a range of styles, sizes, and layout choices. Once built, the home can be installed on land owned by the homeowner or within a designated manufactured housing community. The location plays a crucial role in the home's value appreciation, primarily deriving from the land it occupies. Historically, about 25-30% of these homes were stationed in housing communities, virtually eliminating any prospects for value appreciation. Additionally, the cost of land rental and shared amenities might prove to be economically unviable for some homeowners.

Exploring Financing Options with CrossCountry Mortgage

With the rise in the real estate market, the price of manufactured homes has seen a minimal increase, maintaining affordability. As of Winter 2019, potential buyers could acquire a single-wide manufactured home for $52,700 or a double-wide variant for $105,667. Single-wides typically measure at least 18 feet wide by 90 feet long, totaling 1,080 square feet. In contrast, double-wides can range from 1,000 to 2,300 square feet. Financing these homes presents various loan options. Eligibility for these loans depends on the buyer and the lender's offerings. Reach out to a Mortgage Advisor at CrossCountry Mortgage to explore suitable loan options.

Conventional Financing with CrossCountry Mortgage

We provide conventional financing for manufactured homes at CrossCountry Mortgage, aligning with your long-term objectives. Key loan details include:

• Homes must be constructed post-June 15th, 1976, with visible HUD tags*, and be 400 sq. ft. or larger.
• Options for low down payments
• Allowance for cash-out depending on Loan-to-Value (LTV)
• Availability of reverse mortgages**

VA & FHA Financing at CrossCountry Mortgage

Alongside conventional financing, we also extend VA and FHA manufactured home financing. The U.S. Department of Veterans Affairs backs VA loans, available to active military personnel, reservists, and veterans. Eligible veterans might be able to secure a home with no down payment and refinance up to 100% of the home's value, all without private mortgage insurance. For purchasing a home, condo, or manufactured home, the VA can guarantee up to the total loan's conforming limit. Note, a funding fee might be attached to your VA loan based on your eligibility.

FHA loans, backed by the Federal Housing Administration, are another option. They are particularly advantageous for buyers seeking financial flexibility and low down payment prerequisites. FHA and VA loans, available for all manufactured homes*** that are double-wide or larger, offer:

• Flexible credit score requirements
• 100% financing on VA loans for qualifying applicants
• Low down payment options on FHA loans
• Applicable for primary residences

Curious to know more? We're here to assist. Contact a Mortgage Advisor at CrossCountry Mortgage today for a no-obligation consultation.

*Homes cannot be relocated; park placements are prohibited. **This content has not been provided by or approved by FHA, HUD, or any other government agency. Upon a reverse mortgage's conclusion, the borrower must repay the loan, possibly by selling the home or using other proceeds. The loan comes with various charges, including an origination fee, closing costs, mortgage insurance premiums, and servicing fees. Over time, the loan balance increases, and interest is charged on the remaining balance. The borrower is still responsible for property taxes, hazard insurance, and home maintenance. Nonpayment of these may result in the loss of the home. Interest on a reverse mortgage is not tax-deductible until partial or full re-payment is made. ***Homes must be constructed post-June 15th, 1976, with visible HUD tags, and be 400 sq. ft. or larger. Homes cannot be relocated; park placements are prohibited.