Manufactured Home Loans Arizona

Manufactured homes are plentiful in Arizona, accounting for 13% of all housing units. A manufactured home in Arizona is a type of prefabricated dwelling mainly produced in factories and then moved to the location of use. It is constructed as a 320-square-foot dwelling unit with a solid chassis to ensure the home’s initial and ongoing transportability. These dwellings are built to survive Arizona’s harsh desert climate and require little long-term care.

The Arizona Department of Housing (ADOH) ensures the safety of all prefabricated homes, factory-built structures, and auxiliary structures in the state. These criteria are intended to enhance Arizona people’s health, safety, and welfare and are consistent with the United States Department of Housing and Urban Development (HUD) standards.

Arizona has unique rules and restrictions concerning manufactured homes’ purchase, installation, and occupancy. Installers who connect these homes to on-site utility terminals, set them on foundation systems, or offer ground anchoring, for example, must get an Arizona Department of Housing license.

Financing Options for Manufactured Homes

There are different types of financing options for manufactured homes in Arizona, and the one you choose may be determined by factors like your eligibility as a borrower, the type and age of the home you’re purchasing, and whether your new home is considered “real property” or “personal property.”

• Conventional Mortgage

  • Fannie Mae MH Advantage

The Fannie Mae MH Advantage is a mortgage product designed to provide home buyers with affordable financing options for purchasing manufactured homes with comparable features to site-built homes. It was introduced as a solution to the country’s housing shortage, providing a more affordable path to homeownership.

MH Advantage-qualified homes can be single-width or multi-width and are defined as dwellings of at least 400 square feet and at least 12 feet wide, built to the “HUD Code” for manufactured housing, constructed on a permanent chassis, installed on a permanent foundation system, and titled as real estate.

• • Freddie Mac Choice Home Program

The Freddie Mac CHOICEHome program is a low-cost mortgage initiative that provides traditional site-built financing for real-estate factory-built homes, sometimes known as “manufactured,” “prefab,” “modular,” or “accessory dwelling units (ADU).” These homes are built following the June 1976 Manufactured Home Construction and Safety Standards and are supported by a permanent, non-removable steel frame or chassis.

This program was created in response to the present housing supply deficit, making it difficult for many people to find housing. More than 22 million families in the United States live in manufactured housing. Freddie Mac’s CHOICEHome program aims to enhance the availability of excellent affordable manufactured homes while also providing lenders with various financing choices to assist borrowers in financing them.

• FHA Loans

  • Title I Loans

The FHA Title I manufactured home loan is part of the Federal Housing Administration’s (FHA) Title I program, which insures mortgage loans provided by licensed lenders to finance the purchase of a new or used manufactured home. FHA loans are popular among first-time homeowners because they require a lower down payment (just 3.5% minimum) and have less stringent credit score requirements.

• • Title II Loans

The Federal Housing Administration (FHA) Title II loan for manufactured homes is a mortgage product insured by the FHA that provides financing for homes built in a factory, also known as manufactured or mobile homes. It can cover either the home itself or a suitable lot on which to build it.

FHA Title II loans for manufactured homes have the same credit score, down payment, and debt-to-income ratio requirements as loans for traditional “stick-built” properties. There are, however, specific property requirements associated with the purchase of a manufactured home.

• VA Loans

Veterans and military personnel can use their VA loan benefits to purchase a manufactured home, generally a more affordable housing alternative. Manufactured or mobile homes are built in a factory to meet the U.S. Department of Housing and Urban Development’s construction requirements. According to state law, the house and property must be deemed real estate and meet all municipal zoning standards.

• Chattel Mortgage

A manufactured home can be classified as personal or real property, affecting financing opportunities. A conventional mortgage can be used to buy a prefabricated home permanently anchored to a HUD-approved foundation, but a chattel loan is required for a personal property home.

A chattel loan for manufactured homes is a mortgage used to fund the acquisition of moveable personal property, such as a prefabricated home, but not the land on which the property is located. This type of loan is secured by movable property, often known as chattel, which also serves as collateral for the loan.

Apply for Manufactured Home Loan in Arizona

Many lenders avoid manufactured home loans because they are regarded as high-risk. Thankfully, we do not! Capital Home Mortgage provides financing for manufactured homes and a construction-to-permanent option with a single closing. 

Our Home Loan Specialists are always available to answer any questions about our Arizona Manufactured Home Loan options. The number to reach us is (480) 360-6650.