Manufactured Home Loans Alabama

A manufactured home is a residential structure created off-site in a factory setting, then transported to its permanent location and placed on a foundation. A manufactured home is a factory-made home constructed after June 15, 1976, according to a more technical definition. On that date, the United States Department of Housing and Urban Development (HUD) established the federal regulations governing the construction of mobile homes.

Manufactured, Mobile, and Modular Homes

Before 1976, mobile homes were mass-produced in response to the desire for inexpensive, movable housing, but building criteria were not regulated. Beginning in the early 1900s, people needed to relocate to wherever work was available to support their families, and thus the mobile house was born.

The design of these earliest mobile homes resembled that of a modern camper or trailer, with an exposed trailer coupler and wheels that made the house easily moveable. Typically, the residence was constructed on steel I-beams that ran end-to-end and could be installed on concrete blocks, wooden blocks, metal supports, or a concrete foundation at the chosen site.

Although the term “mobile home” is still popular outside the federal government, HUD guidelines have classified all mobile, factory-built housing types as manufactured. The department details the energy, wind, and snow requirements for this type of dwelling.

Modular homes are made in sections, then moved to the building site and put together. Even though parts of the house were made ahead of time, the components, or modules, are put together during construction just like in a regular house.

Modular homes, like manufactured homes, are produced in a factory and then moved to the home site. The primary distinction between manufactured and modular homes is that manufactured homes are constructed per the national HUD code. In contrast, modular homes are built following all applicable state and local building requirements.

Financing An Alabama Manufactured Home

Financing the construction of a mobile house might be challenging, but a construction loan could ease your financial burden. Once construction and inspections are complete, a construction-to-permanent loan will convert into a mortgage loan. The conventional credit score and down payment for construction loans are 620 and 20%, respectively.

HUD Title I loan may be utilized for purchasing or refinancing a manufactured home, a developed lot on which to place a manufactured home or both. The home must serve as the borrower’s primary residence.

For Title I loans, the person taking out the loan doesn’t have to buy or own the land where their manufactured home will be put. Instead, borrowers can rent a lot, like a site lot in a mobile home park or manufactured home community. When the land or lot is leased, HUD requires the lessor to give the manufactured homeowner an initial lease term of 3 years. Also, the lease must say that if the lease is going to end, the homeowner will get written notice at least 180 days before the end. These lease terms are meant to protect homeowners in case the landowners sell the land or close the park.

Apply For An Alabama Manufactured Home Loan

Purchasing a manufactured home is a safe and reasonable path to homeownership for those on the lower end of the pricing spectrum.

Contact one of our loan specialists at Capital Home Mortgage Alabama immediately at (205) 352-1030 if you believe a manufactured home loan may be your best option. You can rely on our mortgage specialists to provide trustworthy, sincere advice regarding any aspect of mortgages.