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.
- 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.
- 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.
- 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.
- 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.
- 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.