You Can Still Refinance Your Manufactured Home!

Mortgage and Lending with SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) NMLS 223495

Fannie Mae guideline changes in the last 24 months have made it more difficult to refinance manufactured homes.  They have not made it impossible.  Call me.

In order to qualify for a conventional loan on a manufactured home, here's what you need to keep in mind:

  • The home has to be a double-wide at minimum.  Singlewides and singlewides with site-built additions are no longer eligible for conventional loans. 
  • The home must have been manufactured after 1976.  There's some dispute about the actual date requirement.  Countrywide's guidelines say that the home must have been manufactured after 1975.  The underwriter, however, said the guides are wrong.  We were just denied a loan through Countrywide on this issue.  If you're 1976 or newer, no problem.
  • The maximum amount you can cash out on a manufactured home is 65% of the appraised value.  Start with that number, subtract the existing mortgage (if any) and your closing costs, and the difference is the max you can take.
  • The term of the loan will be 20 years instead of 30 or 40.  Again, Fannie Mae guidelines.  The practical effect of the shorter term is a higher monthly payment.  The benefit is that you're paying more principal each month than would otherwise be the case, and you're saving 10 years of interest.  Every cloud has a silver lining.
  • You will have to pay about $100. more for the appraisal.  The form for manufactured homes is a little more detailed, and the appraiser has to do more work.  If the original HUD tags have been covered with stucco (common here in Tucson) the appraiser will have to track down the original manufacturer and provide proof of the date of manufacture.

The phrase I hear most often is "It's not fair."  If my home were stick built, falling down, and twice as old, I could take out a lot more."  That may very well be the case, but things go in cycles.  Right now this is how it is, unless you want to pay hard money rates of 13 or 14 percent.

And that's the real estate opinion of this Tucson Mortgage lender.

Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona


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Candy Henthorne
Results Realty - Spring, TX
Spring Texas Real Estate
Mike- Good information to know.  Thanks for sharing!
Oct 17, 2007 05:14 PM #1
Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Mike, This is really good info. I don't do a lot of these type of loans but I am working on one now. I was able to find one lender that would amortize of 30 years but it balloons in 15 years.  (not fannie)
Oct 18, 2007 12:24 AM #2
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Candy, thanks for visiting and commenting.

Matt, thanks for visiting and commenting.  I always appreciate seeing you here.

Mike in Tucson

Oct 18, 2007 12:40 AM #3
Jack Pearce
RE/MAX Valley Real Estate - Boardman, OH
Broker - ABR, ASP, CSP, ePRO, GRI
Mike - thanks for the info. Trumbull Co. here in Ohio is mainly rural and lined with manufactured homes. Financing is always a problem and most mort. brokers, not to mention REALTORS, don't know the difference between manufactured and modular. Nice to know there's someone who does.
Oct 18, 2007 01:16 AM #4
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
Excellent information - we don't see a lot of information on financing manufactured homes -
Oct 18, 2007 03:23 AM #5
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Jack, I stumbled a few times while learning the difference. Thanks for commenting.

Bill & Barbara Jo, investors here are buying manufactured homes, renting them out, and waiting for the market to turn.  When that happens, look for the mobile to be carted away, and a sitebuilt to replace it.  Thanks, as always, for coming back!

Mike in Tucson

Oct 18, 2007 03:54 PM #6

Thank you for the information.

My home is upside down and my bank is not helping other than to offer a modification.

In my case this is useless as my income has been cut and I was left with debt when my husband passed away.

With your information I now know why I am in an impossible situation and will just need to wait for the bank to take some type of action as I can no longer pay the mortgage since it is about 75% of my income.

Fannie Mae has proven to be no help to the public.  I am sorry I ever trusted the government.

Feb 13, 2012 02:05 AM #7
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