So I’ve been writing about financing for manufactured homes lately, and you really can’t talk about financing manufactured homes with looking at the FHA home loan. This program, which I have written about quite a bit, is great for so many things. Well, the FHA home loan is also one of the best financing options for manufactured homes.
FHA and Manufactured Homes
When I first got into the mortgage business in 2005, there were a lot of banks making loans. There were quite a few lenders that financed nothing but manufactured homes. FHA was always an option…but the standards for manufactured homes to be eligible for an FHA-insured mortgage are kind of strict. This doesn’t just protect the bank; having minimum quality standards and basic requirements for the foundation protects you, the homeowner, as well.
Well, as banks started dropping left and right, FHA has continued to be a stalwart financing option for manufactured homes. Today, FHA is one of the few options that remain available for financing a manufactured home.
FHA home loans – The Basics
As I have talked about before, this loan program is ideal if you don’t want to put your entire savings up for a downpayment. The minimum required downpayment for FHA is 3.5% – you can put as much down as you want, though. There is an upfront funding fee, and a monthly mortgage insurance premium. These cover the bank from excessive exposure in the event of a foreclosure. Splitting it up like this keeps your closing costs and monthly payment a little lower than they otherwise would be. For more about FHA, click here.
FHA and manufactured homes
Some lenders offer FHA loans for manufactured homes with almost the exact same terms as a stick-built house. There may be a slight hit to the interest rate, but nothing drastic. Other lenders might require more money down on manufactured homes. Still others might have additional credit restrictions layered on top of the standard FHA guidelines. These layers are called “overlays”, and are common to many loan programs. Read about a specific instance here.
There are, however, some standards the property needs to meet. The home needs to have been built after 1976, and it must be on a permanent foundation. For more information about manufactured homes, check out these posts.
If you have any questions about financing manufactured homes, or FHA home loans in Oregon and Washington, please don’t hesitate to contact me:
- 503.799.4112
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- jason@mypmb.us
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And of course, if you are in the area surround Portland, OR and Vancouver, WA well then:
Also, I welcome any feedback you might have in the comments section below, thanks for stopping by!
