Manufactured Home Loans In Spokane

With the rising cost of conventional housing, many people turn to manufactured homes for increased affordability and adaptability. These prefab houses have many of the same personalization options as site-built houses.

If you want to buy a manufactured home, you could be looking for financing. Although most conventional lenders won’t issue you a mortgage to buy one, there are still other choices.

Manufactured, Mobile and Modular Homes

Mobile, manufactured, and modular are frequently used interchangeably when discussing these similar categories of homes. Even though they are related, there are significant differences between these residences.

• Mobile Homes

A mobile home, also known as a house trailer, trailer, or park home, is a factory-built structure carried to its intended location on a permanently attached chassis. It is typically built on a steel frame with wheels and designed to be moved to a place often permanent. Mobile homes can be used as permanent residences, vacation homes, or temporary housing.

The construction date of a residence determines whether or not it is considered a mobile home. Mobile homes are homes constructed in a factory before June 15, 1976. The National Manufactured Housing Construction and Safety Standards Act was enacted by the U.S. Department of Housing and Urban Development (HUD).

• Manufactured Homes

The Housing Act of 1980 defines manufactured homes as factory-built homes constructed on or after June 15, 1976. Under the Manufactured Home Construction and Safety Standards (HUD Code), HUD strictly regulates the building of these dwellings.

A manufactured home is a type of prefabricated housing assembled predominantly in factories and then transported to their respective locations of use. Federal law in the United States defines manufactured homes as at least 320 square feet in size with a permanent chassis to ensure the home’s initial and ongoing transportability. The requirement of a permanently attached wheeled chassis distinguishes “manufactured housing” from other forms of prefabricated houses, including modular homes.

• Modular Homes

Modular homes, like mobile and manufactured homes, are constructed in a factory and transported to the building site. However, modular dwellings resemble traditional houses more. They typically feature crawlspaces and basements and a conventional foundation.

It is crucial to differentiate modular homes from manufactured and mobile homes. A modular home is constructed to approximately 80-90% completion in a factory before being transported to the construction site for final assembly. In contrast, a modular home must be delivered completely assembled and constructed on a chassis.

Similar to site-built homes, modular homes must comply with local, state, and regional building codes. Because they must withstand transport from the factory to the building site, they are constructed with 20-30% more materials than conventional residences.

Financing Options For Manufactured Homes

Once you’ve decided on the features of your manufactured home and where you’ll install it, you’ll need to figure out how to pay for it. When financing a manufactured home, you have a few alternatives.

• FHA Loans

The Federal Housing Administration loan program is made available through HUD. Title I and Title II loans are included.

• • Title I Loans

The U.S. Department of Housing and Urban Development (HUD) insures Title I financing for manufactured homes, which facilitates the purchase of new or used manufactured homes. The program was initiated in 1969 to encourage mortgage lenders to finance manufactured homes previously financed with high-interest, short-term consumer installment loans. This initiative has made manufactured home financing more accessible and affordable.

A Title I loan may be used to purchase or refinance a manufactured home, a developed lot on which to place a manufactured home, or both a manufactured home and a lot. The home must serve as the primary residence of the borrower. In addition, for Title I insured loans, borrowers are not required to purchase or own the property upon which their manufactured home is situated. Instead, They can lease a lot, such as a manufactured home community or mobile home park site.

The program protects lenders from default, increasing their willingness to finance manufactured homes. As a result, buyers can finance their home purchase for longer loan terms and at lower interest rates than they could through conventional loans.

• • Title II Loans

Federal Housing Administration (FHA) Title II loans are fixed-rate loans that can be used to finance manufactured homes and real estate sold together. Title II loans, including manufactured homes, are available for all FHA-eligible single-family residences. They are subject to the standard FHA loan limits and can provide financing terms of up to 30 years.

The manufactured home must be permanently attached to your property to qualify for a Title II loan. The home’s foundation must be determined to comply with the Permanent Foundations Guide for Manufactured Homes. Permanent foundations consist of “durable materials (concrete, mortared masonry, treated wood) and construction on-site.”

Title II loans are unavailable for manufactured homes on leased land in manufactured home communities or mobile home parks. 

• VA Loans

A VA loan for manufactured homes is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) and designed to assist eligible veterans, service members, and their spouses in financing the purchase of a manufactured home. The U.S. Department of Housing and Urban Development (HUD) establishes the construction codes that manufactured homes must adhere to.

If you are a member of the military, you may be eligible for a Department of Veterans Affairs-insured loan to buy a manufactured home and place it on land you already own, buy both the home and land simultaneously, or refinance a home you intend to transport to land you own.

Specific requirements must be satisfied to qualify for a manufactured home VA loan. Depending on the lender, these criteria may vary marginally, but in general, they consist of the following:

1. According to state law, the home and property must be considered real property and comply with all local zoning requirements.
2. Single-wide manufactured homes must be at least 400 square feet, while double-wide manufactured homes must be at least 700 square feet.
3. The residence must be firmly anchored to a permanent foundation.
4. Manufactured homes must have a label on the exterior indicating that they comply with HUD codes and regulations.

• Conventional Loans

  • Fannie Mae MH Advantage Program

The Fannie Mae MH Advantage program is a loan product for manufactured homes that offers flexible underwriting standards and reduced interest rates. The program is intended for purchasers seeking a manufactured home with amenities and exteriors comparable to site-built homes.

You must meet various eligibility requirements to qualify, including installing a driveway and a sidewalk connecting the driveway, carport, or detached garage. The structure, architectural design, and energy efficiency standards must be met like site-built residences.

• Freddie Mac Choice Home Program

The Freddie Mac CHOICEHome® program is an affordable mortgage initiative offering conventional site-built financing for factory-built homes on real property. These homes are constructed according to the HUD Code and have the characteristics of a site-built home. This program is specially designed to extend lending opportunities for moderate-income borrowers.

If specific criteria are met, a factory-built home is granted CHOICEHome certification and is eligible for CHOICEHome financing. For instance, it must have a minimum roof pitch of 4/12 with 4″ overhangs, and its permanent foundation must comply with HUD’s Permanent Foundation Guide for Manufactured Housing. A multi-section home with at least 1,000 square feet of living space and expanded exterior features, including two of the following three: a dormer, an attached/detached garage/carport, or a covered veranda of at least 72 square feet, are also required.

Apply for a Manufactured Home Loan in Spokane

Capital Home Mortgage has a unique home loan program for people who want to buy a manufactured home. This program has several key benefits for people who want to buy a house in Spokane. Through their One-Time Close Construction Loan Program, they offer low down payment choices that give buyers more freedom. In addition to low down payments, Capital Home Mortgage offers 30-year fixed-rate financing with interest rates similar to traditional single-family home financing. Their method lets the land and the house cost be put into a single loan. This makes the financing process more accessible and reduces the number of closings, saving home buyers both time and money. This program is open to all qualified home buyers and can meet various financial situations and needs.

Call our Spokane Home Loan Specialists at (253) 528-4417 for your manufactured home financing questions.