Manufactured Home Loan Program

Loans for Double-Wide Manufactured Homes built after June 15, 1976

Manufactured homes are becoming more popular as they are built with higher-quality materials, installed following strict standards, just as are site-built constructed homes and yet affordable. These types of structures also are typically located in rural areas with large lots becoming for many buyer's best way to afford housing with acreage land.

Also commonly called modular homes or pre-cut homes, manufactured homes have been built in a factory in a way that conforms to all federal building codes administered by the United States Department of Housing and Urban Development. They're permanent dwellings of a minimum size of 320 square feet, constructed on a permanent steel chassis that allows them to remain in place - and stable - in a single location during their lifetime.

If you're thinking of pursuing a loan to fund the purchase of your own manufactured home, there are several different options for you to choose from, depending on your needs. These include FHA loans, USDA loans, VA loans, and conventional loans - each of which brings with them their own unique advantages based on your current situation.

FHA Manufactured Home Loans

To be eligible for an FHA manufactured home loan, your dwelling must be a double-wide manufactured home. Both the home and the land itself must be classified as real property under the law in the state that you live in. It needs to be more than 400 square feet in size and must sit on a permanent foundation.

To get a loan to purchase such a home, you need a credit score of at least 500. The LTV to purchase is 96.50%, while the LTV for a simple refinance is 97.75%. Keep in mind that LTV and CLTV are always calculated from the base loan amount before any refinancing occurs.

Consider some FHA guidelines:

Max Loan Amount - $ $356,362
Min Credit Score – 500.
Loan Term – 30, 25, 20, and 15 Year Fixed.
Financing Restrictions - Escrow impounds for taxes and insurance required.
Sales Concessions - Up to 6% of the sales price.
Borrower Eligibility - Non-occupant co-borrowers allowed.
Maximum DTI - Determined by Automated Underwriting System but not over 56%

USDA Manufactured Home Loans

To obtain a USDA loan for a manufactured home, the unit must be A) newly built and B) has never been occupied in the past. It must come directly from a dealer's lot within one year of your original purchase agreement. It should be installed on a permanent foundation, and it again must be at least 400 square feet.
To obtain this type of loan, you need a credit score of at least 550 with some credit restrictions which we will address after we revise your application. The LTV and CLTV are both 100%, provided that the dwelling is owner-occupied.

Consider some USDA guidelines:

Max Loan Amount - $548,250
Max qualifying income - See https://www.rd.usda.gov/files/RD-GRHLimitMap.pdf The current standard USDA loan income limit for 1-4 member households is $91,900.
Min Credit Score – 550.
Loan Term – 360 months.
Financing Restrictions - Escrow impounds for taxes and insurance required.
Sales Concessions - Up to 6% of the sales price.
Borrower Eligibility - All borrowers must occupy the subject property.
Maximum DTI - Housing 29% and total debt 41%. Guaranteed Underwriting System may allow higher DTI with ‘Accept’ findings.

VA Manufactured Home Loans

In terms of VA loans, one of the major requirements is a debt-to-income ratio of greater than 41% - meaning that you'll need the residual income that exceeds the guideline by at least 20%, or you'll need justification and the express approval of the loan underwriter's supervisor.
The manufactured home in question will need to be your primary residence, and you must have a credit score of at least 500. Purchasing the home outright with a base loan amount of $822,375 comes with an LTV and CLTV of 100%, though a cash-out refinance has an LTV and CLTV of 90%. Keep in mind that according to VA guidelines, refinancing any loan - other than an existing VA loan - is considered "cash out."

Consider some VA Guidelines:

Max Loan Amount - $548,250
Min Credit Score – 500.
Loan Term – 30, 25, 20, and 15 Year Fixed.
Financing Restrictions - Escrow impounds for taxes and insurance required.
Sales Concessions - Up to 4% of the sales price.
Borrower Eligibility - All borrowers must occupy the subject property.
Maximum DTI - Loans with an Automated Underwriting System result Approve/Eligible. Ratios on a case by case may even reach 60+% Debt-To-Income ratios.

Conventional Loans

In terms of conventional loans, keep in mind that manufactured homes are only eligible for Fannie Mae DU/DO loans - they're ineligible for Freddie LPA. Likewise, the cash-out maximum is a 20-year term, and subordinate financing is not permitted.
Regarding the purchase of your home, the LTV and CLTV are 95%. If you're performing a full cash-out refinance on a primary residence, the LTV is 65%. You must have a minimum credit score of 660.

Consider some Conventional Guidelines:

Max Loan Amount - $548,250
Min Credit Score – 660.
Loan Term – 30, 25, 20, 15, and 10 Year Fixed.
Financing Restrictions - Escrow impounds for taxes and insurance depend on loan-to-value.
Sales Concessions - Up to 3% of the sales price on loans at 90% LTV or less. Up to 6% for loans between 75% and 90% and up to 9% on loans under 75% LTV.
Borrower Eligibility - Non-occupant co-borrowers allowed.
Maximum DTI – Determined by Automated Underwriting System but not over 50%

If you'd like to find out more information about manufactured home loans in Houston, or if you have any additional questions about mobile home loans in Houston that you'd like to discuss with someone in a bit more detail, please don't delay - contact us today.

Don't wait any longer and find out how much you can get Pre-Approved for.

Whether you are considering purchasing a manufactured home, Clear Lending can help you. Simply complete our secure and encrypted Pre-Approval Form online and we will contact you right away to review the best options for you.

Not all applicants will qualify. This advertisement is not an offer for an extension of credit. Please meet with a licensed loan originator for more information as programs are available only to qualified borrowers. Programs rates, fees, terms, and programs are subject to change without notice. Not all loans, loan sizes, or products may apply. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet loan-to-value requirements, and final credit approval. Approvals are subject to underwriting guidelines and program guidelines and are subject to change without notice. Some restrictions may apply.

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