Tuesday, July 16, 2013

FHA financing a manufactured home in Eugene/Springfield

FHA is a great way to finance a manufactured home with its own land in Eugene/Springfield or anywhere. I repeat, you can finance the purchase or the refinance of a manufactured home even in today’s lending environment in Lane County.
FHA continues to be the best way to finance the purchase of a manufactured home, especially if you only have a limited down payment. There are minimum standards, for instance, the home needs to be a double wide, it has to have been manufactured after June 15, 1976, it can’t have been moved since it was originally set up and it must have a concrete foundation and tie downs.
There are a couple of other interesting things of note when considering a manufactured home.
  1. The manufactured home cannot be in a flood zone, period, end of report. It doesn’t matter if you can get flood insurance or not, they cannot be financed if they are in a flood zone.
  2. USDA will guarantee new manufactured home purchases, but there are no lenders, to my knowledge, that will finance them. USDA will not finance existing homes.
  3. Conventional loans are also available for manufactured homes with a minimum of 20% down on a purchase and a lower loan to value on a refinance.
  4. I have found no lender willing to finance an existing manufactured home on rented ground or a park. There may be some out there, but I am not aware of them.
  5. Modular homes and manufactured homes are different. A modular home is built in a factory and assembled on the site. A manufactured home is built in a factory and comes to the site assembled with only the joining of the sections to be done on the site. Modular homes are financed like any other site built home.