Manufactured Home Loans In Seattle

A manufactured home is a prefabricated housing assembled in factories before being transported to its final locations. Per the federal building code administered by the U.S. Department of Housing and Urban Development (HUD), they were constructed wholly in factories after 1976. The HUD Code governs this procedure’s Federal Manufactured Home Construction and Safety Standards.

A key feature of manufactured homes is their construction on a permanent chassis, which ensures the home’s initial and ongoing transportability. This requirement of a permanently attached wheeled chassis distinguishes “manufactured housing” from other prefabricated home types, such as modular homes.

Modern manufactured homes have become more customizable and opulent while retaining some traditional mobile home characteristics (such as being constructed off-site and assembled on a rectangular chassis). They are built with solid-steel frames, giving them a sturdiness that contradicts older conceptions of mobile homes. Once the home is situated, the wheels are typically removed from the permanent chassis, which can be placed on a foundation, a lot, or in a home park.

Mobile, Modular, and Manufactured Homes

Mobile, manufactured, and modular homes are all varieties of prefabricated housing, which means they are constructed in a factory and transported to their final location for assembly. However, their construction standards, mobility, and histories are distinct.

While manufactured and modular homes can resemble one another visually, their construction codes and regulations are distinct, which can impact factors such as cost, quality, and loan. 

• Mobile Homes

Mobile homes were popular in the mid-1900s and provided a practical choice for people who needed to migrate for employment while still providing a stable home for their families. These dwellings had features like an exposed coupling for a trailer and wheels, which made them portable. However, mobile homes built before 1976 are commonly referred to as “mobile homes” or “trailers,” whereas those erected after 1976 are recognized as manufactured homes due to the implementation of HUD building requirements.

• Manufactured Homes

“Manufactured home” refers to homes constructed after 1976, when the United States Department of Housing and Urban Development (HUD) adopted strict construction and safety regulations known as the HUD Code. These homes are designed to federal specifications, and while they may be transportable in some ways, they are primarily intended to be stationary once put on a site.

• Modular Homes

Modular homes, like manufactured homes, are built in a factory setting but to local, state, and regional building codes rather than the federal HUD Code. Once fabricated and put on a permanent foundation, they are supposed to be indistinguishable from a traditional site-built residence.

Types of Manufactured Home Financing in Seattle

The most common types of manufactured home financing in Seattle are as follows:

• FHA Title I

The FHA Title I loan program is intended to provide affordable financing to buyers of manufactured homes who may not qualify for a conventional mortgage, with a lengthier term and lower interest rate than conventional loans.

The FHA Title I loan may be used to purchase or refinance a manufactured home, a developed lot on which to locate a manufactured home, or both. The dwelling must serve as the borrower’s primary residence. For Title I insured loans, borrowers are not required to purchase or own the land on which their manufactured home is located; instead, they may lease a lot within a manufactured home community or mobile home park.

• VA Loan for Manufactured Homes

The VA financing for manufactured homes is a program offered by the U.S. Department of Veterans Affairs to assist eligible service members, veterans, reservists, National Guard members, and certain surviving spouses in purchasing manufactured homes.

The VA guarantees these loans, safeguarding lenders against potential loss if the borrower fails to repay. This makes it simpler for veterans and service members to obtain financing, often on more favorable terms than traditional loans from a private bank, mortgage company, or credit union.

• FannieMae MH Advantage

The Fannie Mae MH Advantage is a financing program for manufactured homes designed to resemble site-built residences. This initiative provides affordable and attainable homeownership options in response to the United States housing shortage.

The financing provided by the MH Advantage program enables prospective buyers to acquire these manufactured homes with as little as a 3% down payment, making them an affordable option. This program provides opportunities for a broader spectrum of borrowers, including those previously considered only site-built homes.

Specifically, MH Advantage homes are manufactured homes constructed to satisfy particular standards for construction, architectural design, and energy efficiency. This ensures they are more consistent with site-built homes and allows for unique roof treatments, foundations with a reduced profile, garages or carports, porches, and dormers. In addition, they integrate resilient siding materials and meet minimum energy efficiency standards.

The dwellings must be at least 400 square feet and 12 feet wide, constructed on a permanent chassis, installed on a permanent foundation system, and titled as real property. Single-wide mobile homes do not qualify for MH Advantage.

• FreddieMac ChoiceHome

The FreddieMac Choice Home Program, often known as CHOICEHome®, is a ground-breaking mortgage initiative that provides conventional site-built financing for real-estate factory-built homes. These dwellings, often known as “manufactured,” “prefab,” “modular,” or “accessory dwelling units (ADU),” are built following the HUD (Department of Housing and Urban Development) Code and have all of the characteristics of a regular site-made home.

A factory-built home receives CHOICEHome certification and qualifies for CHOICEHome financing if it satisfies specific requirements. The current conditions include a multi-section home with a minimum of 1,000 square feet of living space, a minimum roof pitch of 4/12 (not applicable for triple wide or larger), and certain expanded exterior features, such as a dormer, attached/detached garage/carport, or covered porch of at least 72 square feet. In addition, the home must have front and rear roof eaves of at least 4 inches and a foundation that conforms to HUD’s Permanent Foundation Guide for Manufactured Housing. The foundation must be designed and certified by an engineer for the specific dwelling and site, including a perimeter mortar masonry obstructing wall and a low-profile/residential floor elevation design not exceeding 30″ in height.

Apply for a Manufactured Home Loan in Seattle

Capital Home Mortgage offers Seattle homebuyers interested in financing manufactured homes a significant advantage. Their One-Time Close Construction Loan Program is designed specifically for manufactured homes, incorporating the land and home costs into a single loan with a single closing. This option facilitates the financing procedure and may reduce closing expenses. Such financing options can make homeownership more accessible in today’s competitive housing market due to the affordability and adaptability of manufactured homes.

Call (253) 528-4417 to speak with our Seattle Manufactured Home Loan Specialists.