Think about financing mobile homes? Want to buy a new or used mobile home, but are looking to finance the purchase?
The US Dept. of Housing and Urban Development, or HUD, offers a special program for the financing of manufactured homes.
Under HUD’s Title I mobile home lending program, approved borrowers can purchase:
Financing Mobile Home Options
- Refinance the mortgage on their existing mobile home.
- Finance the purchase of a new manufactured home.
- Finance the purchase of developed land or lot (to place a mobile home).
- Finance the purchase of a developed lot and mobile home in combination.
You’re still getting a mortgage and monthly payments on the mobile home you buy, and the government insures the loans through the FHA like normal.
One point to note is that the residence purchased must be the primary living quarters for the individual financing.
You can’t finance your vacation home, but it sure makes the purchase of a new manufactured home accessible to so many renters out there.
Manufactured Home Prices
- $23,226 – Developed Mobile Home Lot
- $69,678 – Manufactured Home Only
- $92,904 – Developed Lot & Mobile Home
Above are the maximum loan amounts for the financing mobile homes or a developed lot for the manufactured home you already own.
With a budget of over $90,000 to finance a new manufactured home and the land you live on is an amazingly affordable deal.
Note these loans are for a maximum of 15-20 years, so you’ll be paying your property off a decade faster than a traditional 30-year mortgage, and your purchase price is a fraction of what traditional stick-built home costs.
Refinancing Mobile Homes with HUD
The manufactured home lending program does allow mobile home residents to refinance the existing loan on their home.
This can be a great way for resident to save thousands on the life of their home loans.
After purchasing a new manufactured home and enjoying it for years, you will have paid down a chunk or your loan, and your credit score will improve as a result.
Now that same resident can refinance the existing loan on their mobile home, and get a much more favorable interest rate.
Because of their excellent credit and their hard work over the years, (think pay raises & job promotions, car loans paid down, etc.) They can start making their credit score work for them in the form of home loan savings.
For more information, please read the full program details at the Dept. of Housing and Urban Development website: here.