FHA modular and manufactured home loans represent a popular option for home buyers who currently have the ability to repay a mortgage, but may have had some credit challenges in the past. FHA loan products also carry lower down payment requirements. These products are a great vehicle to help individuals who have a not-so-perfect financial history achieve the dream of home ownership.
Qualifying for a FHA Modular or Manufactured Home Loan
FHA modular and manufactured home loans are made by private lenders but are insured by the FHA in the case of default. In many cases, these loans have lower credit score requirements than conventional loan products. So don’t assume that past credit challenges, or no established credit, will automatically deter you from obtaining a home loan. Contact Cascade today and let us make that determination.
To qualify for a FHA modular or manufactured home loan, you must make a small down payment. Cascade’s FHA modular and manufactured home loans require as little as 3.5% down or land equity in lieu of this amount.
As with any loan, you must prove you have enough income to afford the payments. The debt to income ratio required for approval can vary based on a number of factors including past credit history, how much of the total income is dedicated to housing, residual income calculations, and other factors. As part of the loan application process, a representative at Cascade can help you understand debt to income ratios and work with you to determine the appropriate loan amount for your unique circumstances.
Rules for FHA Manufactured Home Loans
Because FHA manufactured home loans are insured by the FHA, there are certain rules and requirements that must be met. These include but are not limited to:
- The home must be built after June 15, 1976.
- The red HUD label must be affixed to each section.
- Minimum size to be financed is 400 square feet.
- The home must be permanently affixed to a foundation that meets FHA standards.
- The home must meet the Model Manufactured Home Installation Standards.
- The lot where the manufactured home will be set must be designated or approved.
- The home must be used as a primary residence.
While there are many rules for FHA modular and manufactured home loans, Cascade is an expert in making sure homes are FHA compliant. We understand every case is different, and throughout our history of offering FHA modular and manufactured home loans, we have worked with all sorts of borrowers. We’ve even written a helpful book on the topic, which we share with our clients.
We have dedicated loan officers who are experts in their field and want to help you qualify for the modular or manufactured home loan you need. Our goal is to help you achieve your dream of home ownership so we offer a range of extra benefits including rock bottom interest rates, 30 year loan terms to make payments smaller, and a qualified pool of appraisers that will appraise your home fairly. When you choose Cascade for your FHA modular or manufactured home loan, you can expect the highest level of service from the first day you contact us all the way through closing and for as long as you have a loan with us. Get started on your modular or manufactured home loan by calling 877-869-7082 or completing an online application today!