Articles in Category: Mobile Home Loans

March 22, 2016

How Much Can I Borrow With An FHA Mortgage Loan?

One of the most common questions about FHA loans is, “How much can I borrow?” The answer to that question is a lot easier to get by using an online mortgage calculator to factor in the length or term of the loan, interest rate (estimated), estimated property taxes and other details. Some of the information you need to calculate how much you can borrow depends on circumstances. The interest rate, for example, is determined in part by what rates are on offer currently based on market conditions and other factors but also by your credit history and FICO scores. The better your FICO scores are, the better the interest rates. The borrower and the lender negotiate interest rates on FHA mortgages, they are not set or regulated by the FHA | more...

February 15, 2016

FHA Loan Rules For Manufactured Housing

By Joe Wallace

Recently we wrote about HUD’s proposed rule changes for manufactured housing standards to exclude certain recreational vehicles from the same requirements as home manufactured as permanent living spaces. In light of that recent news, it’s a good idea to review FHA home loan rules for manufactured housing, mobile homes, etc. The first requirement for an FHA home loan on a manufactured home/mobile home is that the home must be classified as a single-family dwelling. It must be no less that 400 square feet and must end up being affixed to a permanent foundation. Other requirements include having a HUD Certification Label affixed or the home must have “obtained a letter of label verification issued on behalf of HUD, evidencing the house was constructed on or after June 15, 1976, in | more...

January 7, 2016

FHA Loan Down Payment Requirements

By Joe Wallace

A recent question in our comments section asked if the down payment for an FHA home loan could be financed, or does it need to come “out-of-pocket”. This is an important factor for FHA single family home loans as there is what the FHA describes as a “minimum cash investment” or down payment required that a potential FHA home loan applicant will need to budget for. That down payment is, at the bare minimum, 3.5% of the “adjusted value” of the property. This is stated in HUD 4000.1 which says specifically: “Minimum Required Investment (MRI) refers to the Borrowers contribution in cash or its equivalent required by Section 203(b)(9) of the National Housing Act, which represents at least 3.5 percent of the Adjusted Value of the Property.” This must be | more...

February 25, 2015

FHA Loans For Mobile Home Lots? A Reader Question

By Joe Wallace

A reader asks, “I never tried to get a loan for my mobile home, I’m currently $250 away from owning it. I went into a land contract with the lady who owns it now, well she didn’t tell me that the people who own the land want all 3 trailers moved off their land by summer, no specific date. Now the I moved into this trailer 04/2014, I’ve dealt with nothing but repairs out of my pocket…I’m a low income, unable to work 30 year old mother, I own a vehicle straight out, and my credit score is 580, is there a type of loan to help me pay to move my trailer, and buy land?” Let’s see what the FHA official site, FHA.gov, has to say about this reader | more...

January 15, 2013

FHA Loans For Manufactured Homes: A Reader Question

By Joe Wallace

A reader asks, “My wife, 5 year old and I live in North Carolina with her parents b/c it simply costs too much to rent. Her parents purchased a manufactured home that is over 10 yrs old (1998) 3 years ago as well as the roughly 3/4 acre lot it sits on.” “The house itself does have a permanent foundation (Strapped or bolted to a PIP or masonry perimeter foundation, with no tow gear left in the crawl). They currently still owe significantly on the mortgage. I’ve been looking at the FHA sites out there for information but I haven’t learned an answer to my question. My question is, can my wife and I buy her parents house and land through a manufactured home loan when the house itself is | more...

January 8, 2013

FHA Loan Reader Questions: Manufactured Home Rules

By Joe Wallace

A reader asks, “What requirements does a factory built home (manufactured or modular)have to meet to qualify for FHA financing? I am particularly interested in any “age” limitations/recognitions/requirements/etc.” It’s true that there are FHA loans for certain types of mobile homes/manufactured homes, modular homes, etc. During the housing crisis, these loans were more difficult to come by; many lenders were not willing to underwrite FHA loans on these types of properties. But with a recovering housing market and rising property values, some borrowers are finding their lenders willing to consider these types of FHA loans once more. To answer the reader’s question, it was necessary to reference the Department of Housing and Urban Development’s Frequently Asked Questions database, which states; “To determine basic eligibility for FHA mortgage insurance, all manufactured | more...

October 10, 2012

FHA Loan Reader Questions: FHA Loans for Manufactured Homes and Land

By Joe Wallace

A reader asks, “Since FHA loan program includes Manufactured homes what about if you want to have your own land to put the house on. Will the loan cover the home and land?” Here’s a partial answer from the FHA official site: “HUD’s FHA program insures two types of mortgages. Title II insures mortgages on qualifying manufactured homes sold with land and meeting other requirements. FHA’s Title I program can provide information to consumers interested in obtaining HUD-insured loans. You may also want to contact lending institutions in your area (or the area where you want to purchase your home) for additional financing options.” The FHA Title II program mentioned above includes a requirement that the mortgage is intended for “both the manufactured unit and its site”. FHA Title II | more...

October 5, 2012

FHA Loan Reader Questions: Modular Homes

By Joe Wallace

Paragraph A reader asks, “Can a modular home on a full foundation be considered for an FHA loan?” A reader asks, “Can a modular home on a full foundation be considered for an FHA loan?” In general the FHA offers two types of home loans for manufactured housing. Here’s a quote from a frequently asked questions list on the FHA official site at FHA.gov: “How about manufactured housing and mobile homes? Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.” FHA loan rules do have provisions for modular homes (which are also considered factory-built houses); | more...

March 23, 2011

More on Title I Loans and Manufactured Homes

By Joe Wallace

FHA Title I loans for manufactured homes can be used several ways–one is to apply for an FHA loan to purchase the home itself, another is to apply for a mortgage loan to purchase a lot for a home already owned or to be purchased, and the Title I loan can also be used to buy a manufactured home and lot combination. When borrowing money for a manufactured home under Title I, there quality standards the home must live up to, including wall thickness, foundation footing, and approved construction materials. “Manufactured homes must comply with the Model Manufactured Home Installation Standards, and all applicable state and local requirements” to include the construction/installation of the foundation system. In addition to the Model Manufactured Home Installation Standards, there’s another set of standards. | more...

March 22, 2011

FHA Loan Facts on Title I Loans for Manufactured Homes

By Joe Wallace

FHA home loans aren’t just available for traditional suburban houses; the FHA also insures loans for manufactured housing. Just as with FHA loans for traditional homes, the FHA insures or guarantees the loan rather than providing the loan itself. The FHA guaranty makes qualified borrowers more attractive to lenders willing to issue the loan. FHA Title I loans for manufactured homes can be used in one of three ways–to purchase the home itself, to purchase a lot for a home already owned or to be purchased, and the Title I loan can also be used to buy a manufactured home and lot in combination. The FHA has different loan terms depending on the nature of the Title I loan. Maximum loan amounts for the home only are just under $70 | more...