Newly Married & Financing Your Manufactured Home

Newly Married & Financing Your Manufactured Home

It is often after their big day that the newlyweds decide to purchase their dream house, and a manufactured home remains the choice of many due to its affordability. Although mobile homes are very desirable, financing one can get a little confusing. 

In this blog, we will look at some popular financing options you can consider when buying your new manufactured home. Armed with the knowledge of the options you have at your disposal, you would be able to make a more informed decision.  

Financing options 

In general, manufactured home financing is much more flexible than stick-built homes. In the former, even a low credit score of 525 and 10% down payment can get approved easily. The term, however, can go as long as 23 years with an approximate interest rate of 4%.   

FHA 

Broadly, all manufactured homes are eligible for FHA loans. This means that you can get a loan from this source just like traditional mortgages. 

But what is an FHA loan anyway?

An FHA (short for Federal Housing Administration) loan is a U.S. Federal Housing Administration mortgage insurance backed mortgage loan. The objective of an FHA loan is to improve housing standards and stabilize the mortgage market. 

• If you opt for this loan option, your manufactured house should comply with the following requirements. 
• It should have access to water and sewer facilities.
• It should have all-weather road access.
• It should be taxed as real estate. 
• It should have the approved HUD seal. 
• It should be permanently attached to the land. 
• It should have a living area of at least 400 square feet. 

USDA 

The USDA (short for The United States Department of Agriculture) loan program opens up an avenue for affordable homeownership for many newlyweds. With no down payment requirements and low-interest rates, USDA has become a popular financing option. 

Again, the home should fulfill some requirements: it should have 400 square feet of living space and be 12 feet wide. The site on which the home is placed should be taxable and classified as real estate. 

Fannie Mae 

Federal National Mortgage Association, commonly known as Fannie Mae, falls under specialized manufactured home loans. Lenders offer Fannie Mae mortgages to those borrowers who willingly finance a manufactured home through the Manufactured Home (M.H.) Advantage® program. 

To qualify for a Fannie Mae loan, the home must have an M.H. Advantage sticker, be 12 feet wide, and have a minimum of 600 square feet of living area.

Freddie Mac

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is also a government-sponsored enterprise like Fannie Mae. Homebuyers can opt for this to buy a manufactured home through the Freddie Mac Home Possible® mortgage program. 

To qualify, the home must be built on a permanent chassis in compliance with the applicable codes for Manufactured Homes administered by the U.S. Department of Housing and Urban Development (HUD Code).

Get your dream manufactured house from Jaco Sales LLC.

At Jaco Sales LLC, we are known to provide the best and most affordable manufactured homes in Alabama. Our mobile home specialists will assist you throughout the buying process to ensure a smooth and hassle-free experience. Give us a call at (334) 283-1017 today to speak with one of our representatives.