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Top Flite Financial, Inc. offers a range of manufactured and modular home financing options to meet the needs of all types of home buyers. This includes conventional loans for top qualifying applicants as well as a wide range of other loan programs which include opportunities for prospective buyers who can afford a home today but have had some credit challenges in the past. The following information will provide details about our modular and manufactured home financing options so you can find the best financing for you.
Manufactured Home Vs Mobile Home
A mobile home refers to manufactured homes produced before June 15, 1976. As the name implies, these homes could be moved around. Mobile homes received a bad reputation thanks to early models, which often werent built with quality in mind and depreciated in value quickly.
Mobile homes have come a long way since then, however. Today, modern mobile homes are not really meant to be moved more than once. Structurally, theyre also much safer and comfortable. In fact, mobile homes offer a variety of floorplans and amenities, including fully equipped kitchens and spacious bedrooms.
Newer mobile homes built after June 15, 1976, are now officially referred to as manufactured homes, though they are still often called mobile homes casually. Mobile homes built before this period dont qualify as manufactured homes, even if upgrades have been made.
Submit Your Loan Application
Youll want to ensure that your application is as complete and transparent as possible. In addition, many lenders require a down payment, so be prepared to make a payment when you complete your application.
Why its important: Being able to submit a complete application will improve your odds of qualifying and keep the process running smoothly.
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Mobile Manufactured Or Modular
Mobile homes are factory-built homes made before June 15, 1976. They might be very nice homes, but they were built before regulators required certain safety standards. Mostalthough not alllenders are reluctant to lend on these properties.
Manufactured homes are factory-built homes constructed after June 15, 1976. They’re subject to the National Manufactured Housing Construction and Safety Standards Act of 1974, and they’re required to meet safety standards set by the U.S. Department of Housing and Urban Development . These rules are often referred to as the “HUD Code.” Manufactured homes are built on a permanent metal chassis and can be moved after installation, but doing so can interfere with financing.
Modular homes are factory-built homes that are assembled on site and are required to meet all the same local building codes as site-built homes rather than those required by the HUD Code. They’re usually permanently installed on a concrete foundation. Like site-built homes, modular homes tend to hold value and appreciate more than manufactured or mobile homes, so its easier to get loans for these homes.
What you call a mobile home is probably a manufactured home, even though the home isor once wasmobile. Either term works, but most lenders avoid lending on properties that are categorized as mobile homes.
Who Qualifies For A Va Loan
For those who are eligible, VA loans are attractive because they dont require a down payment. They also have lower interest rates than many other types of mortgage loans you can get for similar terms. They dont have monthly mortgage insurance.
Although lenders set their own requirements for certain aspects of qualification, VA loans have more lenient credit requirements than many other mortgage programs.
Not all who have served in the Armed Forces qualify for a VA loan. You must meet at least one of the following criteria to qualify:
- Served 181 days of active service during peacetime.
- Served 90 consecutive days of active service during wartime.
- Served more than 6 years of service with the National Guard or Reserves or 90 days under Title 32 with at least 30 of those days being consecutive.
- Are the spouse of a service member who lost their life in the line of duty or as the result of a service-connected disability. You generally cannot have remarried, although there are exceptions.
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Unacceptable Va Loan Uses
Unacceptable uses include:
- Purchasing a home as an investment property. Veterans cant use VA financing to purchase a home solely as an investment property. VA loans are designed to fund primary residences for service members.
- Using as a business loan. VA loans cant be used to purchase a storefront, office space or any other non-residential properties.
- Buying unimproved land. Veterans cant use VA loans to purchase bare land or farm ground that does not contain the borrowers primary home. You also cant buy land with the intent of someday putting a house on it.
- Buying abroad. VA loans can only be used for properties in the United States and its territories, which include American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands.
Its important to know that lenders are free to add their own property restrictions to this list. For example, many VA lenders wont offer financing for manufactured homes . Others will decline to lend on properties like a working farm or a geodesic dome. Acceptance or denial from one lender does not necessarily translate into acceptance or denial from all lenders.
Va Requirements For The Property
What requirements must the property meet? The VA offers a list:
- A manufactured home must meet the HUD Code.
- A manufactured home must comply with all relevant sections of the VA Minimum Property Requirements.
- A manufactured home and its site must be classified and taxed as real property and meet any local zoning requirements for real estate. It cannot be classified as a vehicle or personal property.
- A manufactured home must be on a permanent foundation that meets state and local requirements. In addition, the foundation must support both standing and wind-overturning loads.
- A single-wide manufactured home must have a floor area of at least 400 square feet. A double-wide must offer a minimum of 700 square feet.
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Shopping Tips For A Va Loan For A Manufactured Home
Not all lenders offer manufactured home loans. Here are four tips to follow when shopping for a VA lender to finance a manufactured home.
1. Make sure interest rate quotes are for a manufactured homeWhether youre using a comparison tool website or calling loan officers directly, make sure all the quotes are for manufactured home financing. Mortgage rates and fees are usually marked-up for manufactured homes, and if you dont let lenders know upfront that you want to buy a manufactured home, youll likely get a quote for a single-family home.
2. Explain your scenario to the loan officerTheres no 30-year, fixed-rate option available to finance a manufactured home with a VA mortgage. The maximum term depends on the loan scenario outlined in the table above, and each lender needs to know what your plans are for your manufactured home and land.
3. Gather rate quotes on the same dayInterest rates change daily and comparing quotes from the same day is the only way to look at apples-to-apples offers.
4. Get written confirmation of the rate-lockOnce you review competing lender loan estimates and make your choice, ask for a rate lock. Your credit score will be verified by a credit report so check your credit score to avoid surprises when its time to lock your loan.
Generally We Want Your Minimum Middle Of The 3 Credit Scores To Be A 620 Fico Or Higher
My Middle Credit Score Is Above 620, What Rate Can I Get?
The rate you qualify for depends on many factors since rates change daily, sometimes multiple times a day, the quote you receive today most likely will be different tomorrow. That is of course if you have not locked in your loan.
Borrowers with a 620 credit score may see a little higher rate than those with a 640, 680, 720, and so on. This is because investors offer better rates the higher your score is. They do this because those with higher scores have proven to be of lower credit risk than those with higher scores.
Many people who buy a loan with a lower credit score that has a higher rate could raise their credit even if they took out a 100% loan six months to a year later. In cases where that happens, we are always working with our existing clients and reviewing market conditions to offer an internal streamline refinance.
The streamline refi happens to be the most effective VA loan used to lower a borrowers interest rate, and in most instances will not require a new appraisal because you are only reducing your interest rate or term. It is also possible to have a lower score like the VA streamline refinance as this loan looks at your overall improvement to your financial situation and is not relying on your credit report.
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Va Loan Requirements For Mobile Homes
If you want a manufactured home because you like the idea of having a home thats mobile, youre out of luck. According to the VAs Lenders Handbook VA Pamphlet 26-7 , in order to be eligible for financing through the VA loan program, a mobile home must be:
- Attached to a permanent foundation
- Classified and taxed as real property
- Properly affixed to a permanent foundation
- Substantially conform with VA minimum property requirements
- Conform with applicable building code and zoning requirements for real estate.
These rules ensure that a property is safe to live in and are verified with an appraisal by a VA certified appraiser before you close on a home.
Its important to note that a mobile home must be classified as real property. In other words, it cant be considered a vehicle . If the mobile home youre purchasing hasnt been moved to a permanent location, youll need to provide your lender with details regarding how it will be installed.
If you own a plot of land, you can use a VA loan to buy a mobile home for that lot. You can also use a VA loan to purchase both a mobile home and land at the same time. But the kind of financing thats available to you can vary depending on your circumstances. Veterans who want VA loans for mobile homes will need to submit to a credit check and meet income requirements.
Pros Of Manufactured Homes
- Typically more affordable: Manufactured homes are often much cheaper than stick-built homes. Its also easy to customize a home to fit your particular budget and lifestyle needs. Today, its possible to buy a manufactured home that has all the amenities and comfort of a traditional home for a fraction of the cost.
- Pose efficiency: Manufactured homes can be built and installed quickly. The construction process is also streamlined, allowing for fewer mistakes, damage and delays. Manufactured homes are also highly energy efficient thanks to the HUD code, which requires them to be constructed with energy-saving features.
- They are versatile: Manufactured homes make great starter homes that you can always expand later. As your needs change or family grows, its possible to add on modules. And though most manufactured homes are no longer meant to be mobile, it may be possible to move yours to a different location in the future.
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Va Jumbo Home Loans With Large Land / Acreage
Dont let a property that is on large acreage pass you by, contact us if you have a jumbo home on more extensive tracts of land but your realtor is trying to steer you away, or youre having a hard time finding a lender to refinance your jumbo large acreage property. They arent making any more land, so you want to get pre-qualified while this program is available.
Fha Rules For Manufactured / Modular Homes
FHA One-Time Close construction to permanent financingWant More Information About One-Time Close Loans?
Learn About the Path to Homeownership
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Planning For Surprises With Your Modular Home Financing
No matter how vigilant you are, building a new home always produces a few surprises. Unfortunately, these surprises often result in additional expenses. When they appear you might be tempted to blame someone, but it is not possible for everyone to foresee everything. The full chapter in the book discusses the potential causes of cost overruns, such as:
- Unforeseeable excavation expenses
- Optional features that you mistakenly thought were included
- Insufficient allowances
A Recorded Affidavit Of Affixture
The title company handling your refinance or purchase must record a document called an affidavit of affixture to meetVA manufactured home guidelines. The affidavit of affixture proves the property is attached to land you own and adheres to local building, wind and VA overturn requirements. The affidavit converts the manufactured home from personal property to improved real estate so you can close a VA loan.
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We Work Hard To Obtain Your Dream Loan For Your Dream Home
We have over 100 years of experience helping people just like you get competitive, low, fixed-rate mortgage options for your manufactured home. We promise to never spam you, sell your information, bombard you with robocalls, or provide anything but a clear, transparent conversation, from start to close! It all begins here, start now!
Ways To Obtain Mobile Home Financing
Once you decide on your mobile homes features and where youre going to put it, its time to figure out how to pay for it. There are a few options to consider when financing a mobile home.
For example, its possible to get a loan from the same sources as traditional mortgages, such as FHA and VA loans, as well as specialized manufactured home loans through Fannie Mae and Freddie Mac. These options tend to give you longer repayment terms. But, depending on your situation, you may opt for a nontraditional path with a shorter term. This could include chattel or personal loans.
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Access To Specially Adapted Housing Grants
Do you have a disability that affects your mobility or sight? You may qualify for a SAH grant.
SAH grants can go toward constructing a special home designed to fit the needs of the disabled individual. Or they allow you to modify an existing home to make it more accessible. SAH grants can also pay the unpaid balance of an adapted home already purchased without VA grant assistance.
In 2020, you may qualify for a grant of up to $90,364, and you may use the grant up to three times as long as your disability qualifies. Because the SAH is a grant and not a loan, you dont need to pay it back.
Modular Home Vs Manufactured Home
Modular homes are also manufactured in a factory. However, they are built in sections, which are then transported to the site and fixed together on a permanent foundation. Its very rare that the home is ever moved again. These types of homes dont have to meet the same HUD standards manufactured homes do, though they have to adhere to the same federal, state and local building codes that site-built homes do.
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Will Va Loans Cover Mobile Home Loans
Theres more than one way to become a homeowner and more than one type of house you can consider buying. The type of home you choose largely depends on your familys needs and your budget, but for qualified military members, VA loans can make financing the purchase of a house, townhome, or condo a breeze. You just need to start searching online for VA home loan lenders near me. But what if youre interested in buying a manufactured or mobile home? Can you rely on a VA loan to get the job done?
Va Loan Terms For Mobile Homes
Most VA loans have 30-year repayment terms. But the maximum term for VA loans for manufactured homes is much shorter according to the Catalog of Federal Domestic Assistance . The maximum loan term is 20 years and 32 days for single-wide manufactured homes , For double-wides, its 23 years and 32 days. If youre buying a double-wide home and a lot, the maximum loan term is 25 years and 32 days.
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Rate Locks Expire: Most loans are locked for 30 days because the shorter term allows you to get the lowest rate possible. If you lose your rate lock by letting it expire or needing to extend it because you took weeks getting the items back, it will cost you more money or a higher rate. With rates recently on the rise, a higher rate could even make you no longer eligible for the loan you wanted. A long delay could require you to re-qualify for the loan again.
Programs Could Disappear: Its happened before, weve witnessed a whole host of loan programs get wiped out overnight. Investors can choose to change their risk portfolio and stop offering programs altogether, that is why moving fast on the approval you have in your hand means taking action.
Your Job or Income Status Could Change: What if you lost your job, your income was cut, or you wanted to take a new job, but it put your loan closing in jeopardy because you took too long? Any of these changes in your employment status could come back with more unfavorable terms, or worse, a complete loan denial.