In this blog, we will cover and discuss manufactured home loan guidelines on purchases. Few lenders offer manufactured home loans. Over time, manufactured home builders create beautiful, functional manufactured homes. You can’t tell the difference between a stick-built house and modern manufactured homes.
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Double Wide Manufactured Home Loans
Some double-wide manufactured homes look better than custom stick-built homes. Home buyers should definitely look for double-wide manufactured homes when shopping for a home. You will fall in love with some double-wide manufactured homes. You can have an accessible basement if you build your double-wide manufactured home on a sloped lot. Gustan Cho Associates is a multi-state licensed, lender-free mortgage company overlays on government and conventional loans. We are also experts in financing prefabricated homes. Prefabricated homes are becoming more and more popular.
Today’s prefabricated homes
Many manufactured homes are better than houses built of sticks. Many people cannot tell the difference between a manufactured home and a stick-built home. Many are very pleasant and offer all the conveniences of stick-built homes. Manufactured homes cost much less than stick-built homes. More and more home builders are turning to streamlining the home construction process to minimize the high cost of commercial lumber and 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 Better Than Stick Built Homes
I recently purchased a brand new Ford Expedition SUV and want to keep it garaged during the cold, snowy winters of southern Wisconsin. I was surprised how times have changed. I never met the Tuff Shed salesman. Everything was done via email and text. I first had to install a 16×24 concrete slab for flooring. Once the flooring was completed I contacted Tuff Shed. The company has set a timetable. A team of five workers and materials. Arrived. In two days, the 16×24 double-decker shed was completed. This is a perfect example of a prefabricated house. Not a single piece of wood, nail, roofing or other building materials was thrown away. Everything was used and everyone knew what they had to do. Gustan Cho Associates offers manufactured home loans on government and conventional loans. In this blog, we will discuss manufactured home loans. In this article, we will discuss and cover agency mortgage guidelines on manufactured homes.
Traditional and Fabricated Mortgage Guidelines
Lenders view manufactured home loans as a higher risk than stick-built homes. Many home buyers are attracted to manufactured homes because of their 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 or prefabricated homes
Mobile homes cannot be financed. What determines the language of a mobile home is that it is not normally permanently attached to a solid concrete foundation. Most mobile home owners do not own the land on which the mobile home is located. Mobile homes normally have wheels attached to them.
Alex Carlucci is a senior vice president at Gustan Cho Associates Mortgage Group. Mr. Carlucci is a modular and manufactured home lending expert at Gustan Cho Associates. Here’s what Alex says about the difference between mobile, manufactured and modular homes:
Prefabricated houses are manufactured homes built after June 15, 1976. These homes are subject to the National Manufactured Housing Construction and Safety Standards Act of 1974 and are required to comply with safety standards set by the U.S. Department of Housing and Urban Development (HUD). These rules are often called the HUD code. Manufactured homes are built on a permanent metal frame and can be moved after installation (but moving the home after installation can interfere with financing). Mobile homes are manufactured homes manufactured 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 these properties.Modular homes are factory-built homes that are assembled on-site and must meet all of the same local building codes as site-built homes (as opposed to the HUD code). They are usually installed permanently 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 models Houses
Borrowers can qualify for government and conventional loans on manufactured homes. However, lenders view manufactured homes as higher multi-level risk funding. Mortgage rates are generally higher on manufactured homes than on traditional wooden homes. Home insurance is generally higher. Most lenders offer overlays on modular and manufactured home loans. For example, most lenders may require a credit score of 640 for manufactured homes, compared to 580 HUD.
Manufactured Home Lenders
Gustan Cho Associates is a multi-state licensed mortgage company with no lender overlay on government and conventional loans. To qualify for manufactured and/or modular home financing, borrowers must own the land. The property must be placed on a permanent and fixed concrete foundation. To qualify for the manufactured home loan, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a quicker response. Or email us at gcho@gustancho.com. The Gustan Cho Associates team is available 7 days a week, evenings, weekends and holidays. Gustan Cho Associates has a hybrid business model in originating and financing mortgage loans. Gustan Cho Associates is licensed in multiple states and has over 160 wholesale mortgage lenders. Not only do we have wholesale lenders on non-overlay government and conventional loans, but we have hundreds of non-QM and alternative mortgage programs.