Many buyers want to know how to get a home loan in this real estate recession, especially because it’s commonly known that it has gotten much harder to get a home loan. Higher credit scores are now required. 660 is the new 620. Manufactured homes are getting a lot of scrutiny these days, and many banks have quit lending on manufactured homes. In this interview with Buck Gieseke of Integrity One Home Mortgage, learn more about how to get a home loan on a manufactured home. This is Part 3 of our “How to Get a Home Loan” series.
How to Get a Home Loan – Manufactured Homes
Did you know that the land value cannot represent more than 30% of the total appraised value of your manufactured home and land? Did you know that manufactured homes cannot have structural changes in the trusses? Did you know that a garage attached to a manufactured homes must meet strict foundation requirements? Did you know that you cannot get a home loan guaranteed by the VA if it was ever moved from another property? A manufactured home must be 1976 1/2 or newer to be financeable. Your debt to income ratio must be no more than 30% of PITI (principle, interest, taxes, insurance) and no more than 41% of your PITI plus other monthly obligations that come up on your credit report (they don’t count your cell phone or gasoline).
You also cannot have modifications to the roof lines, dormers, or trusses (like the garage roofline). As with all home loans, borrowers must have a two year job history. It is still possible to get a 96.5% FHA loan on a manufactured home, but conventional loans require 10% to 20% down.
How to Get a Home Loan – Manufactured Appraised Values
Appraisers are required to use true comps when doing an appraisal on a manufactured home, which means they look for very similar manufactured homes, not site built homes. This can result in a lower appraisal for a manufactured home compared to a site built, which Buck Gieseke explains in this audio series.
In this interview Buck addresses many of the most difficult issues when getting a loan on a manufactured home. [You can contact Buck Gieseke at firstname.lastname@example.org.]
Get a Home Loan on a Manufactured Home at a Local Bank
You may be able to get a home loan for a manufactured home at a local bank, but they also may charge a higher interest rate. Options for manufactured homes are dwindling as values drop and banks drop out of the manufactured home loan programs. I hope this audio series on how to get a home loan is helpful.
Last Updated on September 16, 2011 by Chuck Marunde