Mobile Home or Modular

The term Mobile Home is not “politically correct” since the folks that make them ( and I guess the industry) refer to them as MANUFACTURED HOUSING… but still, I’m from NC, and I grew up callin’ ‘em Mobile Homes – so I hope I don’t offend anyone in this discussion.

We’ve had several folks come to us seeking financing for a a Mobile Home / Manufactured Home that said they had problems at other lenders… not because the borrower had credit or income problems… but because the folks they were talking to didn’t want to finance a mobile home.

In the credit crunch of the last year – mobile home financing has taken a direct hit.  Lenders who “use” to do those loans – stopped.  But there are still financing options available! Here’s the “real” trick.  Do you know what “sort” of manufactured property you own?

Sounds like a simple question – and I guess in truth it is – but what you’re looking for is a sticker.  The home should have a HUD sticker (normally near the fuse box or under the sink) OR it will have a NC “Plate” in the same area. The “Plate” means that your home is a MODULAR home – and you can get just about any kind of financing you want!  The STICKER means you have a mobile home – and you can get financing – but in today’s market you’re probably looking at an FHA loan.

FHA guidelines require an inspection of the foundation – modular home financing does not. Other FHA “perks” include:

•·        Low Down Payment of 3% and 100% financing options available.

•·        95% of Appraised Value Cash-Out Refinance

•·        FHA Streamline Refinance

•·        NO  Income Maximum Limits

•·        Gift Funds:  3% down payment can come from FRIEND, FAMILY MEMBER OR NON PROFIT

•·         Seller CAN PAY UP TO 6% OF YOUR CLOSING COST!

•·        Down Payment Assistance

•·        NO Cash Reserves Required

•·        Gap in Employment OK•·        Self Employed 2 Yrs OK – 2nd job income with 12 month history considered

•·        Permanent Alien OK

•·        NO pre-payment penalty

Qualifying for a FHA loan is somewhat easier, because FHA allows us to consider “compensating factors.” They allow credit score down to 580, and they allow you to “build” credit if you don’t have enough for a score!

If you or your friends and family have questions about using FHA to purchase a mobile home, or a modular- and you think you meet the income and credit qualifications – call us! Steve and Eleanor Thorne, First Financial Services, 919-649-5058

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