Some of the most affordable housing can be some of the hardest to get financed. Ever see commercials for those outfits that loan on mobile homes? Only 14%! Wow. Maybe I'll just put it on my Visa card instead. So, can you really get an affordable mortgage on manufactured housing? Sure, if you buy the right kind of manufactured housing.
As they say, the devil is in the details, and if you are buying a mobile home that goes double. Statistically, people who buy manufactured housing have been more likely to default on their mortgages, so lenders often impose some surcharges--but you can keep your mortgage interest rate reasonable if you follow these guidelines when buying a mobile.
- First, your mobile home can't really be mobile--the home must be affixed to a permanent eight-point foundation. Otherwise, it's not legally a house. It's just a really, really big car.
- The home must have been built after June 15th, 1976. Because mobile homes built before then have an inconvenient habit of catching on fire. Newer homes are safe enough to be financed and lived in.
- Qualified manufactured housing has to have at least 400 square feet of floor area. Otherwise, it's not a house--it's a porta-potty.
- If you pay your taxes to the DMV, you do not have a house (see #1). Your property must be classified and taxed as real estate.
- The property must have been designed and built to be used as a dwelling. Duh. Tool sheds or dog houses need not apply.
- The finished grade beneath the home must be at or above the 100-year flood elevation. Otherwise you don't have a house, you have a house-boat.
- Finally, you must also own the land on which the house is (permanently) sited. You can't park it in a national park, a camp ground, or in front of your girlfriend's parents' house.
If you meet these requirements and don't have truly awful credit, chances are good that you can get a mortgage on a mobile home. Try Fannie or Freddie if you have at least 20% down and good credit (you pay a slightly higher rate or an extra .5 point in fees) or FHA if you have less to put down or credit boogers (there is an upfront mortgage insurance premium plus a monthly charge but there is no addition to your interest rate or loan fees).
