Manufactured Housing News

If you're considering buying a manufactured or mobile home, you’re probably wondering about your financing options. Or, if you’ve already done some research into it, you may be wondering if you can get a traditional 30-year loan for something that isn’t a conventional home. The good news is, yes, you can finance a manufactured home with a 30-year loan, but there are several factors and specific loan programs you’ll need to consider and compare. Triad offers loan terms up to 25 years – consider reaching out to learn more about your options!

Understanding Manufactured Homes

Manufactured homes, often referred to as mobile homes, are built in a factory and transported to the site. They differ from modular homes, which are also factory-built but typically assembled on-site. To be classified as a manufactured home, the structure has to have been built after June 15, 1976, following the standards set by the US Department of Housing and Urban Development (HUD).

Types of Loans for Manufactured Homes

Several loan options are available for a manufactured home loan. These include conventional loans, VA loans, personal loans, and specific programs from entities like HUD and Fannie Mae.

1. Conventional Loans: These are traditional home loans that can be used to finance a manufactured home. To qualify, the home usually needs to be affixed to a permanent foundation and meet specific criteria for its construction and condition.
2. VA Loans: Veterans and active-duty service members can take advantage of VA loans to buy a manufactured home. These loans often offer favorable terms and do not require a down payment, but the home must be on a permanent foundation and classified as real property.
3. Fannie Mae’s MH Advantage Program: This program provides affordable financing options for manufactured homes that meet specific construction, design, and energy efficiency standards. Homes under this program must also be on permanent foundations and look similar to traditional site-built homes.
4. HUD Title I and Title II Loans: Title I loans are typically used for personal property, meaning the home is not attached to land. Title II loans, on the other hand, are for manufactured homes classified as real property, requiring them to be on a permanent foundation.
5. Personal Loans: While not ideal for long-term financing due to higher interest rates, personal loans can be an option for those looking to buy a manufactured home outright or need funds quickly.

Loan Terms and Requirements

When it comes to the length of the loan, a 30-year mortgage is possible, especially with conventional loans and programs like Fannie Mae’s MH Advantage. However, the terms will vary depending on the type of home, its location, and whether it’s considered real property or personal property. Homes that are permanently affixed to land and meet HUD standards are more likely to qualify for longer-term loans.

Related: Guide to Used Mobile Home Loans

For a manufactured home to be considered for a 30-year loan, it typically needs to:

• Be built after June 15, 1976, in compliance with HUD standards.
• Be placed on a permanent foundation.
• Meet minimum size requirements (often 400 square feet or more).

Financing Challenges

Despite the availability of these loan programs, financing a manufactured home or refinancing a manufactured home can sometimes be more challenging than a traditional home. Manufactured homes are often assumed to depreciate over time. However, homes that are permanently affixed to land and meet modern construction standards can go up in value, similarly to traditional homes. Discover your financing options easily with Triad Financial Services' Manufactured Home Mortgage Calculator.

Manufactured Home Communities

Many manufactured homes are located in manufactured home communities. Financing a home in such a community can be more complex, especially if the land is leased rather than owned. In these cases, lenders may be more hesitant to offer long-term loans, but HUD’s Title I program can still be an option for personal property loans.

At the end of the day, obtaining a 30-year loan for a manufactured home is possible, especially if the home is on a permanent foundation and meets the necessary standards. If not, it’s less likely, but certain circumstances may provide an exception. Various loan programs are available for manufactured homeowners, including conventional loans, VA loans, Fannie Mae’s MH Advantage, and HUD Title I and Title II loans. By understanding these options and ensuring your home meets the required criteria, you can successfully finance a manufactured home and enjoy the benefits of long-term homeownership. Whether you’re buying a manufactured home in a community or placing it on your land, there’s a financing option out there to suit your needs.

Triad is your trusted partner in mobile homes and offers loan terms of up to 25 years. We specialize in this type of property and are equipped to help you select the right loan for your needs. Reach out to Triad today to learn more!