Waco Manufactured Home Loans

With tiny homes gaining popularity these days, many homebuyers in the market for newly-built modern homes with an affordable price tag are considering purchasing manufactured homes. 

If a manufactured home appeals to you, Capital Home Mortgage has several home loan options to help you purchase one.

What is a Manufactured Home?

Manufactured homes are houses put together in a factory and then placed on a lot. They are typically fixed permanently to one location with a foundation, most frequently a slab. 

While it is possible to move manufactured homes from one location to another, doing so is not practical. A manufactured home is not typically moved once installed at a site.

Manufactured Home vs. Mobile Home

Like manufactured homes, mobile homes are also built in a factory, but they may or may not be attached to a permanent foundation. Even if your mobile home has a fixed foundation but is situated on rented land, you cannot use a conventional loan to buy it because, in most cases, they are considered “personal property.” You might fare better with a personal or chattel loan.

Who can get a manufactured home loan?

To qualify for a mortgage loan on a manufactured home, you must meet the same minimum credit score, income, and down payment requirements as if you were purchasing a site-built home.

The manufactured home will also have to qualify for the mortgage. In addition to adhering to HUD’s safety regulations, the home must be:

• A ‘real property,’ not a ‘personal property’;
• At least 400 square feet of living space;
• Permanently attached to a foundation on land the borrower owns.

Mortgage Loan Options for Manufactured Homes

If your manufactured home meets the above criteria, you may finance it with a conventional loan or other government-backed mortgages.

1. Manufactured Home Loans by Fannie Mae and Freddie Mac

You can put as little as 3% down for a Fannie Mae, or Freddie Mac manufactured home loan but expect the rates to be slightly higher due to the risk-based fees.

To qualify for Fannie Mae’s MH Advantage loan, the home must be on a piece of land you already own or plan to purchase and must have at least 600 square feet of living space. Freddie Mac has a similar loan program for smaller manufactured homes that finances homes as small as 400 square feet. 

2. FHA Title II Manufactured Home Loans

FHA loans exist to assist credit-challenged borrowers in purchasing an affordable home. Those looking to buy a manufactured home should check out the FHA’s Title II program, which resembles the FHA’s conventional mortgage for newly constructed homes.

The FHA also offers a one-time-close combo land & home loan, which pays for the manufactured home and the land it will sit on. 

3. VA Manufactured Home Loans

The United States Department of Veterans Affairs VA loan program guarantees mortgages for veterans and active-duty service members. The borrower must put in at least a 5% down payment for a VA-backed manufactured loan. The VA can finance the purchase of the land as well. 

Most private lenders offer VA loans with some of the best rates and lowest fees on the market.

4. USDA Manufactured Home Loans

Loans from the USDA Rural Housing program don’t need a down payment. This loan program is suitable for people who want to buy a manufactured home as long as the house is brand new. Like all other USDA loans, USDA manufactured home loans only work in rural and suburban areas and for buyers with incomes that don’t exceed certain limits.

Apply for a Waco Manufactured Home Loan Now!

Private lenders offer manufactured loans throughout the country, but it can be a little more challenging to find one that gives them. The good news is: if you’re looking for a manufactured home loan in Waco and the rest of Texas, Capital Home Mortgage has you covered!

Our mortgage specialists have the experience to help you find a manufactured home loan perfect for your needs and budget! Call (254) 213-7343 now.