Have You Ever Thought About Buying a Manufactured Home?

As home prices rise, more home buyers are looking at Manufactured Homes as a viable alternative to “stick built” homes.

Historically, mortgages for these manufactured homes have been tough to find, but things, they are a-changin’.

What Exactly is a Manufactured Home?

If a factory-built dwelling unit is built on a permanent chassis and attached to a permanent foundation it is classified as a manufactured home.

The manufactured home and the land on which it is situated must be titled as real property.

It’s important to note that even if on a permanent foundation, the home cannot be classified as “single-wide”. And homes on leased land are a no-no.

(Other factory-built housing (not built on a permanent chassis)—such as modular, prefabricated, panelized, or sectional housing—is not considered manufactured housing.)

They may be purchased as primary residences or vacation homes and the loan must be fully amortizing, (meaning no interest-only loans). The loans are first liens only, no 2nds – equity lines or equity liens.

Other guidelines are about the same as for a stick-built house. Down payments are as little as 5% and if you already own the land and want to move a manufactured home onto it, the value of the land (if owned outright) may be credited toward the downpayment requirement.

More Information on the Manufactured Home Itself

• The manufactured home must be a one-unit dwelling.
• The manufactured home must be at least 12 feet wide and have a minimum of 600 square feet of gross living area.
• The manufactured home must be permanently connected to a septic tank or sewage system.

You may think that there are not many manufactured homes where you live, but often you’ll find them where you least expect. And if your city is not friendly to manufactured homes, you can always purchase one in the desert, the mountains or the beach and use it as a vacation home.