Dallas, Texas, is a large, sprawling city that's part of the DFW or Dallas Fort Worth which gives you the advantage of two substantial cities. Dallas is a cosmopolitan city with great restaurants and year-round warm weather. While it has a Southern flavor, it has some unexpected features, such as a large art district that is home to the most art museums in America. If you're in the market for a manufactured home in Texas and searching for financing, one option worth considering is an FHA loan.
What is an FHA Loan?
FHA stands for the Federal Housing Administration which is part of the Department of Housing and Urban Development. An FHA loan is a mortgage that the Federal Housing Administration insures and is funded by an FHA-approved lender.
FHA loans are specifically created to assist borrowers who have low-to-moderate income. Part of the advantage of an FHA loan is that the minimum down payment required is lower than other types of loans. They also offer more flexibility in terms of what credit scores can qualify for a loan. Even if you have a lower credit score than would be acceptable for a conventional loan, you have a better chance of qualifying for a loan under FHA guidelines.
Some of the advantages of this type of loan include:
Favorable pricing. FHA loans have competitive interest rates.
A low down payment. Qualified buyers can purchase a manufactured home with as little as 3.5% down.
Easier qualifying. Even if you have issues with your credit history and credit score, you may still qualify for a home loan from Cascade
What Do I Need to Qualify for an FHA loan?
Qualification requirements vary depending on which type of FHA loan you're applying for. While qualification requirements can vary based on the type of FHA loan you're applying for, in general, the criteria for your loan approval rests upon these factors:.
Your earned income.
Your credit score and credit history.
Any debts you have.
How much equity you'll have in the property.
The home must be used as your primary residence.
The amount you want to borrow.
It's important to note that there are restrictions on FHA loan amounts, which vary by county, and are also based on the cost of real estate in the area where your home will be located.
What Types of Dallas Mobile Homes are Eligible for an FHA Loan?
FHA loans are for qualifying homebuyers looking to purchase a manufactured or modular home on owned land in the State of Texas. Single-wide, double-wide, and multi-wide manufactured and modular homes may both be eligible. Mobile homes technically don't qualify, as mobile homes are technically classified as prefabricated homes built before June 15, 1976. However, a seller may refer to their home as a mobile home even though it was built after 1976 and may still qualify. So it is always best to check!
What is a Manufactured Home?
The FHA definition of a manufactured home is a prefabricated house that can be transported in one or more sections. The home is defined as forty feet or longer and eight feet or wider in traveling mode. The FHA rules state that a manufactured home differs from a new construction project due to assembly methods. A new construction property is built on-site, from the ground up, with no pre-fabricated parts utilized.
A modular home is partially assembled off-site, the pieces are then transported to the house's location. These partially constructed parts are then assembled with the additional construction to finish the home's build. This final assembly is completed by construction companies, individual laborers, or building contractors. Plumbing and electricity must also be connected to local power sources and sewage systems.
A mobile home is a prefabricated house that was constructed before June 14, 1976. After this date, HUD required a higher level of safety, resulting in new construction codes for prefabricated homes. The term “mobile home” is often used interchangeably with “manufactured home” but is most often associated with manufactured homes that are still moveable and not attached to a foundation.
Manufactured homes must adhere to the standards set forth by HUD for all prefab homes constructed after June 14, 1976. Their exterior will look more modern and attractive. The construction will be more sound than older prefab houses. In the interior, the appliances and fixtures will be more stylish than in older homes. They tend to have more space, larger kitchens, bathrooms, and bedrooms. You have the option for even more space if you choose a double-wide manufactured home. Once inside these modernized homes, you may not even be able to tell that it's a mobile dwelling.
What are the Dallas, TX, Manufactured Home FHA Loan Requirements?
FHA loans have several requirements for manufactured and modular homes, including:
The home must have a minimum of 400 liveable square feet.
The home must have been built after June 15, 1976, when new guidelines were set in accordance with the Federal Manufactured Home Construction and Safety Standards.
The home must be attached to a permanent foundation.
The home can't be located in a mobile home park.
The loan must include the land where the home is located.
Other programs may be available if the home is in a park or is not attached to a permanent foundation.
What is a Modular Home?
A modular home is a home that's been created in sections at a factory and then built on site and placed on a permanent foundation. While it's still a prefabricated home, it shares some characteristics of a traditional home in that it's located in one place and won't be moved.
You're most likely to own the land where your modular home is located. This means you won't be paying for lot rent endlessly. Your mortgage will cover both the home and the land where it's located. Call Cascade Financial Services toll-free (877) 869-7082 to speak to a home loan expert, or through our website. We can help turn your Dallas, Texas, manufactured, or modular home dreams into a reality.