Manufactured Homes Lending Guidelines On Purchases

In this blog, we will cover and discuss manufactured homes lending guidelines on purchases. Not too many lenders offer Manufactured Homes Lending. As time pass, manufactured home builders are coming up with creating great looking, and functional manufactured homes. You cannot tell the difference between a stick-built home and modern manufactured homes.

Double Wide Manufactured Homes Lending

Some double-wide manufactured homes are nicer than stick-built custom homes. Homebuyers should definitely research double-wide manufactured homes when shopping for a home. You will fall in love with some double-wide manufactured homes. You can have a walk-out basement if you build your double-wide manufactured home on an inclined lot. Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. We are also experts in manufactured home financing. Manufactured homes are becoming increasingly popular.

Today’s Manufactured Homes

Many manufactured homes are better than stick-built homes. Many folks cannot distinguish a manufactured home from a stick-built home. Many are very nice with all the amenities of stick-built homes. Manufactured homes cost substantially less than stick-built homes. More and more homebuilders are turning into streamlining the home-building process to minimize the high cost of lumber and business materials. For example, I recently ordered a 16×24 two-story shed so I can unload a lot of junk I have in my three car garage.

How Manufactured Homes Are Sometimes Nicer Than Stick Built Homes

I recently purchased a brand new Ford Expedition SUV and want to have it garaged during the snowy cold winters in Southern, Wisconsin. I was surprised how times have changed. I never met the salesman at Tuff Shed. Everything was done via email and text. I had to first install a 16×24 concrete slab for the flooring. After the flooring was done, I contacted Tuff Shed. The company set a schedule. A crew of five laborers and the materials. Arrived. In a matter of two days, the 16×24 two-story shed was completed. It is a perfect example of manufactured housing. Not a single piece of lumber, nail, roofing, or other building materials was thrown to waste. Everything was used and every single person knew what they needed to do.  Gustan Cho Associates offers Manufactured Homes Lending on government and conventional loans. In this blog, we will discuss Manufactured Homes Lending. In this article, we will discuss and cover the agency mortgage guidelines on manufactured homes.

Traditional Versus Manufactured Mortgage Guidelines

Lenders consider Manufactured Homes Lending as a higher risk than stick-built homes. Many home buyers are attracted to manufactured homes because of affordability. These homes are very popular in rural areas where contractors and building materials are not readily available. There are areas where manufactured homes are the only option.

Mobile, Modular, Versus Manufactured Homes

Mobile homes cannot be financed. What determines the verbiage of a mobile home is they are normally not permanently fixed on a solid concrete foundation. Most mobile homeowners do not own the land the mobile home sits on. Mobile homes normally have wheels fixed on them. 

Alex Carlucci is a Senior Vice President at Gustan Cho Associates Mortgage Group. Mr. Carlucci is an expert in modular and manufactured homes lending at Gustan Cho Associates. Here is what Alex says about the difference between mobile, manufactured, and modular homes:

Manufactured homes are factory-built homes built after June 15, 1976. Those homes are subject to the National Manufactured Housing Construction and Safety Standards Act of 1974 and are required to meet safety standards set by the U.S. Department of Housing and Urban Development (HUD). Those rules are often referred to as the HUD Code. Manufactured homes are built on a permanent metal chassis and can be moved after installation (but moving the home after installation can interfere with financing). Mobile homes are factory-built homes made before June 15, 1976. They may be very nice homes, but they were built before regulators required certain safety standards, and most (but not all) lenders are reluctant to lend on those properties.Modular homes are factory-built homes that are assembled on-site and are required to meet all of the same local building codes as site-built homes (as opposed to the HUD Code). They are typically permanently installed on a concrete foundation. Like site-built homes, modular homes tend to hold value and appreciate more than manufactured or mobile homes, so it’s easier to get loans for modular homes.

Loan Programs Available On Modular And Manufactured Homes

Borrowers can qualify for government and conventional loans on manufactured homes. However, lenders do consider manufactured homes as higher layered risk financing. Mortgage rates are generally higher on manufactured homes versus traditional stick-built homes. Homeowners’ insurance is generally higher. Most lenders have lender overlays on modular and manufactured homes lending. For example, most lenders may require a 640 credit score on manufactured homes versus the 580 HUD requires.

Manufactured Home Lenders

 

Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. To qualify for manufactured and/or modular home financing, the borrowers need to own the land. The property needs to be in a fixed permanent concrete foundation. To qualify for manufactured homes lending, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Gustan Cho Associates has a hybrid business model when it comes to originating and funding mortgage loans. Gustan Cho Associates is licensed in multiple states with over 160 wholesale mortgage lenders. Not only do we have wholesale lenders on government and conventional loans with no overlays but we have hundreds of non-QM and alternative mortgage loan programs.