Manufactured Home Loans in Delaware
Yes, there are manufactured home loans available in Delaware. It's a good thing becaused there are quite a number of these homes in the state, especially in Sussex County, near the beaches.
In this article I am focusing on what the parameters are through FHA. With FHA, you can purchase a manufactured home with 3.5% down payment if your credit score is 580 or above. And, with a score between 500 and 579, a 10% down payment is required.
With refinances, you can get a rate and term at 97.75% loan to value with a credit score of 580 and above. A credit score between 500 and 579 goes up to a 90% loan ot value. If you need cash out on the refinance, you can go up to 85% loan to value with a score 580 and above. Scoes 500- 579 can go up to 75% loan to value.
The manufactured homes that qualify for the FHA home loan need to have the title retired and be classified as a Class C; real property, with a block foundation around the perimeter. The home and land are owned together.
Manual underwriting or alternative credit may be considered on these loans. A good housing reference is the main item needed for this.
On FHA loans, an up front mortgage insurance premium is added to the loan amount. Plus, a monthly mortgage insurance premium is added to the monthly housing payment.
These loans are available for 15, 20, 25 and 30 year terms at a fixed interest rate. Plus 3/1 and 5/1 adjustable rate mortgages.
This is the first of several articles on loans available for manufactured homes in Delaware.
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