Approximately 86% of manufactured homes now sold are placed on permanent foundations which allows you the opportunity to qualify for FHA, VA and Conventional loans.
Home Only Financing
Manufactured homes can be financed in much the same way as a personal loan. This personal property loan is designed for customers who are going into manufactured home communities where they will be leasing their lot rather than buying/owning it or going on their own lot where the home will be taxed separately from the lot. The home is the only collateral on this type of loan.
You can still finance your exterior improvements (carports, decks, steps, etc.) as part of this style of loan. Because this is a personal property loan and not a real estate loan, interest rates are slightly higher than a regular real estate loan. However, there are few or no closing costs and no prepayment penalty for early pay-off in part or whole.
This also makes an excellent “bridge” loan for those customers who need only short term financing. There are several “industry lenders” who fund these loans.
Unlike “home only” financing, land/home loans are normally the same as loans on stick built/conventional homes in terms of interest rates and down payment requirements. This type of loan includes the cost of the home, land, and the improvements to the land.
You can finance a garage along with your foundation, septic system, land clearing, etc. You can pick which type of land/home loan you need: conventional, FHA or VA. You can also choose your lender. As these loans are typically more complex than the same type of loan on an already existing home, we suggest you carefully choose your lender. Ask them how many of these loans they have done from start to finish.
We suggest that you consider paying a little extra to make your land/home loan a “construction” loan so your site contractor can get draws like a builder, rather than waiting until the very end to get any funding. Some land/home loans don’t have this “construction/draw” feature so check with your lender. You should see a slight reduction in your site contractor’s bid by using the “construction/draw” style loan that will typically offset any extra loan fees.