Manufactured Homes Are Very Affordable!

 In a past life when I sold manufactured homes the more difficult the economy and the higher the interest rates the better we did.  WHY, becuase of AFFORDABILITY!  Just think, as the price of homes is up (yes even today after all that has happened) and financing rates go up that brings monthly payment more into play.  And for a lot of us in Rural areas this is even a larger factor. 

Now, I am not hear to lecture you about these homes; but I am here to help you know how to get the best possible financing for them and your clients.  Now, I am only dealing with homes that come with the property, if you are in a "park" where you rent the space these loans will not work for you.  That is a differnt market niche from this one.

(yes this is a manufacture home).

If your client is looking at a new home from the dealer or even a used home from a private party or even a repo that is in a park the first thing you will need is a construction loan.  There are 4 things you will need for this loan.

1. The price of the home
2. The price of the land
3. a full bid including transport (if any) and foundation, utility hooks, etc.  (Remember you are BUILDING A HOME)
4. A Subject to appraisal.

My construction lenders like to see that I have at least run DU or DO and that the client can qualify for a permanent loan so I always include that in my package to the construction lender.

(so is this)   Now how about that important final loan. 

• USDA Rural Development will do the loan!  102% financing so the client can really get into the end product WITH NO MONEY DOWN.  But this is only for new right from the dealer/factory.  Not used or pre owned.  I actually love this loan.  Yes there are some things like termite protection (in snow country?), but think about this...... AFFORDABILITY MEETS LOW OR NO DOWN HOUSING.  USDA has no monthly MI/PMI making this even better for budget clients and there is no hit to rate for manufactured homes!!!!!  The rate today for USDA is BETTER than FHA and Conventional.
• FHA will also do this loan, but as of this typing the client will need 3.5% into the project.  That can be deposits for the home, utilitiesas long as we total 3.5% of the project. This is only for new also, or existing.  This doesn't work for the owner that wants to move theirs from the rented space to their own land.  That would be "twiced moved" and for now FHA frowns on that (I think this is a silly rule, but until it is changed it is the rule).  Some investors do have slightly higher rates for manufactured homes.
• Conventional Yes there is conventional financing for manufactured homes.  Even twice moved ones. Again these loans come with a higher rate, but then the home has a lower price. (We are seeing more of the twice moved projects here in Western Colorado due to the cost of housing and land)

The one thing I like about these homes is the construction loan period is so much shorter.  General rule of thumb is approx 90 to 120 days and we are in the permanent loan, so the client has less interest to pay adding to even more affordability.

These are for HUD homes only.  If your manufactured home is built to the UBC or IBC code then you have a stick built home. These will be more money and a slightly long build time, but still shorter than most construction projects and they qualify per Freddie and Fannie as "regular" homes, so your financing options and better.