Midland Manufactured Home Loans

Formerly known as “mobile homes,” today’s manufactured houses have come a long way from the trailers of decades past.

Today’s manufactured homes come in various designs and features and are made to look like regular “stick-built” or “on-site” homes. Plus, they are safer, more energy-efficient, and can be purchased for significantly less money than conventional homes.

What are Manufactured Homes?

A manufactured home is a home that has been constructed in a factory according to federal HUD codes. They are transported to the property on a permanent steel “chassis” that will serve as structural support once the home has been installed. 

A manufactured home can qualify for a mortgage if it is considered “real property,” which means it is permanently affixed to land you own or lease, sits on a permanent concrete foundation, and has had its axles removed. 

While many people may use the terms interchangeably, mobile homes and manufactured homes are two distinct housing types. The term “mobile home” refers to factory-built houses constructed before June 15, 1976, when HUD passed the National Manufactured Housing Construction and Safety Standards Act. 

How Much Do Manufactured Homes Cost?

According to the most recent U.S. Census data, a manufactured home typically costs around $88,000. However, the cost of a manufactured home can vary depending on size, floor plan, and features. You can choose from dozens of features and a wide range of floor plans, including single-, double-, and triple-wide options.

Also, the home must be permanently attached to the land. If you already own the land, you can finance the manufactured home. If not, get a home loan to cover the cost of both the land and the dwelling. 

The construction-to-permanent loan is popular because it consolidates financing a new manufactured home and the land purchase into a single mortgage, saving you money on closing costs.

How Can I Finance a Manufactured Home?

Manufactured home financing is available via conventional and government-guaranteed loan programs so long as certain conditions are met. 

     1. Conventional Loans

While not all financial institutions are willing to provide financing for mobile or manufactured homes, Fannie Mae and Freddie Mac offer manufactured loan options if both the borrower and the home meet their standards. Fannie Mae and Freddie Mac will only finance manufactured homes if they are constructed on a permanent chassis, meet real property standards, and have at least 400 square feet of living space.

     2. FHA Loans

The interest rates offered by the FHA are very competitive and often the lowest of any loan program. Manufactured home buyers can apply for a loan from the FHA under Title I or II.

Title I loans can be used to buy a manufactured home, but not the land it is on. On the other hand, Title II loans can be used to acquire both a prefab home and the land on which it will be built. These loans are not available for mobile home parks or rented properties. 

     3. USDA Loans

Manufactured home buyers in rural areas eligible for USDA financing can apply for a loan to cover the cost of their manufactured home purchase. The USDA guarantees these loans, making it possible to borrow the total value of a home without having to come up with a down payment. Borrowers must earn no more than 115% of the county median income to qualify for the program.

     4. VA Loans

VA loans are available for purchasing manufactured homes and the land they sit on, much like Title II FHA loans. The Department of Veterans Affairs offers VA loans exclusively to veterans and active-duty service members who meet specific requirements. If you are eligible, you can get a VA manufactured home loan with no down payment and no mortgage insurance, among other advantages.

     5. HUD-184 Loans

Native American homebuyers can use the HUD-184 Single Close Construction to finance a stick-built, modular, or manufactured home that meets their needs. If you are a member of a federally-recognized tribe, speak with one of our Capital Home Mortgage’s home loan experts to see if the HUD-184 Single Close Construction loan is right for you.

Let’s Discuss Your Manufactured Home Loan Options

Many lenders steer clear of manufactured home loans because they are considered high-risk. The good news is that — we don’t! Capital Home Mortgage provides financing for manufactured homes, including a construction-to-permanent option with a one-time closing. 

Our home loan specialists can answer your questions about our Midland Manufactured Home Loan products anytime. We’re just a call away at (432) 218-4828!