Mortgage Programs for Manufactured and Modular Homes in Florida, Texas, Tennessee, and Alabama.
Are you familiar with the differences between manufactured and modular home mortgage program? Do you know what loans are available for a modular or manufactured home?
Today, I will be discussing the differences between these two types of homes and will go in depth with what mortgage programs are available for both manufactured and modular homes.
Remember, if you have not yet done so, make sure to download our “USDA New Construction Guide” with the link below. This educational resource will walk you through the USDA new construction loan process and the steps required. It is designed for homebuyers, builders, and Realtors alike.
What are the Different Mortgages Available for Manufactured and Modular Homes in Florida, Texas, Tennessee, and Alabama.?
The primary difference between a manufactured home and a modular home is determined by how the home was assembled, along with the building codes that must be followed. Additional differences between manufactured homes and modular homes in Florida, Texas, Tennessee, and Alabama are below.
- Manufactured homes are also referred to as mobile homes, and according to Fannie Mae, they define a “manufactured home” as any dwelling unit built on a permanent chassis that is attached to a permanent foundation system and evidenced by a HUD Data Plate and HUD Certification label.
- Manufactured homes are also built according to Federal Code requirements, which can be found under the National Manufactured Housing Construction and Safety Standards Act.
- Guidelines require that manufactured homes be classified as real property for eligibility.
Existing Manufactured Homes – Available Mortgage Programs
Metroplex Mortgage Services, Inc. offers financing options for existing manufactured homes under VA, FHA, and Conventional Loans (Fannie Mae and Freddie Mac).
USDA Existing Manufactured Home Pilot Program
Additionally, USDA loans allows financing for existing manufactured homes under the USDA Manufactured Home Pilot Program which was extended through November 30, 2022. This pilot program focuses on provided financing for existing manufactured homes in select states.
While it is true that the USDA Single Family Housing Guarantee Loan Program does not generally permit loans for existing manufactured homes, the USDA Existing Manufactured Home Pilot Program provides an exception to this rule in certain eligible states.
There are several requirements that must be met to be eligible for financing under the pilot program. Read more about the USDA existing manufactured home pilot program or contact our office to learn more.
New Manufactured Home with a USDA No Down Payment Construction Loan
For manufactured homes that are new, USDA allows for no down payment construction loans under their Single-Close program. Some restrictions may apply, so be sure to contact us to discuss your situation with my team.
The combination construction to permanent loan section of the USDA guidelines states the following in relation to the single-close program: “A single-close loan combines the features of a construction loan, which is a short-term interim loan for financing the cost of construction, and the traditional long-term permanent residential mortgage.”
In addition, it states under Eligible Loan Costs that “[t]he loan will be used to finance the construction of a new single family housing residence, which can include modular and manufactured home construction” which shows you that the USDA single-close program does allow for manufactured homes under these conditions.
Read more on the four steps to qualify for a Construction to Permanent Loan for Manufactured Homes or contact our office to learn more.
- Modular homes are built in sections at a factory and then transported to its destination. These homes must follow state, regional, and local building codes once they are fully assembled at the property.
- Fannie Mae states the following regarding modular homes, “Loans secured by prefabricated, panelized, or sectional housing are eligible for purchase. These properties do not have to satisfy HUD’s Federal Manufactured Home Construction and Safety Standards or the Uniform Building Codes that are adopted and administered by the state in which the home is installed. The home must conform to local building codes in the area in which it will be located.”
- In addition, modular homes are affixed to a permanent foundation and do not have wheels to be mobile. They are classified as single-family residences.
Our Recommendation for Financing Modular Homes:
Metroplex Mortgage offers financing options for existing modular homes through USDA, FHA, VA, and Conventional loan programs. For modular homes that are new, we are able to work with USDA no down payment construction loans.
As a USDA and VA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you
Just call, email, or text to discuss your scenario and let us show you the “Metroplex” difference!
Toll Free: (800) 806-9836 X 280
Call/Text: (863) 451-3032
Don’t forget to download our USDA Blueprint for Success with this link.