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For Sale by Owner
Financing Manufactured Homes
Manufactured homes have changed dramatically over the past several decades. With innovative designs that enable home buyers to achieve affordable luxury, manufactured homes have moved into the mainstream of the national housing market. Just as manufactured homes have changed over the years, so have their buyers, and so, too, has manufactured home lending.
Once financed almost entirely on a chattel loan basis, manufactured homes increasingly are being financed with traditional mortgage loans. This trend in manufactured home mortgage lending is the natural result of several factors according to the Manufactured Housing Institute, the national industry association.
• Leading the list is the simple fact that both “Freddie Mac” and “Fannie Mae” programs will now purchase manufactured home mortgage loans.
• Manufactured homes also now can qualify for FHA, VA and Rural Housing Service (formerly FmHA) coverage.
• As manufactured homes become a greater part of the mainstream housing market, the characteristics of the manufactured home buyer increasingly match the characteristics of the “traditional” mortgage borrower.
• Because this is likely to be the second, third or fourth-time home purchase, today’s manufactured home buyers understand the mortgage loan process -- and expect their manufactured home to be financed in the traditional manner.
• Many housing industry observers believe that manufactured home growth will outpace stick-built housing within the next ten years.
To qualify for Freddie Mac and Fannie Mae purchase and securitization programs, and for various federal loan guarantees and insurance coverage, a manufactured home must be attached to a permanent foundation and be titled as real estate by the local jurisdiction.
The Manufactured Housing Institute publishes “Manufactured Housing: A Guide to Mortgage Lending Programs,” available through their office at 2101 Wilson Blvd., Suite 610, Arlington, VA 22201-3062 (703-558-0400).
Additional information on manufactured home financing
can be obtained at several web sites:
Federal Housing Administration (FHA) - www.hud.gov/fha
Veteran Administration – www.homeloans.va.gov
Rural Housing Service – www.rurdev.usda.gov/rhs
You can also reach the local offices of these government agencies by looking in the phone directory’s “government” section. Many states and municipalities also offer mortgage programs to qualified applicants. And, of course, make sure you talk with local banks, savings & loans and credit unions.
It makes sense to explore all your options when it comes to buying your manufactured home. Thanks to increasing acceptance by the financial industry, you have more options than ever before!
Information courtesy of Manufactured Housing Institute. For more information visit their website at www.mfghome.org.