Manufactured and modular housing are popular options for Arizona residents who are seeking affordable and convenient housing. Also sometimes called mobile homes, manufactured homes are affordable and quick to finance. Modular housing, which is factory-built, is assembled on a foundation or slab.
Financing manufactured and modular housing isn't like getting a traditional mortgage, but many options are available to meet your needs and match your budget. The quickest financing is a chattel loan on a manufactured home only, which can be closed in as little as 30 days. Loans are also available to cover a manufactured or modular home plus land and improvements like a garage. Government-backed loans like FHA and VA are even available and can save money and ease credit requirements. Find out more about the options available for manufactured and modular homes in Arizona.
How Are Manufactured Housing Loans Different?
Manufactured housing is financed and refinanced differently than site-built homes that have conventional mortgages. Financing options vary quite a bit depending on your situation, whether you're simply seeking to finance the manufactured home through a chattel loan or if you're seeking financing that will cover a home plus improvements like a foundation, driveway, garage, or deck.
Chattel mortgages are up to 25 years in length and have simplified application and closing processes. They are especially fast to close since appraisals and other steps are not needed. Chattel loans work well for homes on a leased lot or if the owner already has land available.
Loans that are more similar to conventional mortgages cover the manufactured or modular home, the land, or other improvements like garages. As with any type of home loan, credit and income requirements apply, as well as down payments and approval steps. Special programs like Veterans' Administration, Federal Housing Administration loans, and U.S. Department of Agriculture financing may be options as well.
Chattel loans for manufactured homes stay with the home if it is moved to another lot. The loan is similar to one on a vehicle or industrial equipment.
Which Type of Manufactured Housing Works for Me?
Manufactured and modular housing offers many options and configurations to meet your family's needs. Both types of housing are built entirely or partially at a factory. Modular homes are assembled in pieces on a foundation and must meet the same local building codes as site-built homes. They often a have basement. In fact, they look just like site-built homes; their value follows the housing market.
Manufactured, or mobile, homes are factory-built and must meet Department of Housing and Urban Development codes on a federal level. They are completely built at the factory and include a framework with wheels. Wheels may be removed and stored once they are set up. Manufactured homes can come in single-wide or double-wide sizes, as well as other architectural styles. Factory-built decks and porches may also be included.
Which Financing Options Are Available for my Manufactured Home?
Financing options that meet your needs and maximize value are plentiful for manufactured and modular housing. Chattel loans, mortgages that include land and government-backed options like FHA, USDA, and VA provide many options to consider.
Government-backed loans can be a solid option for those who qualify and can meet other restrictions like the inability to rent out the property and the need to comply with restrictions.
FHA loans are available for financing or refinancing manufactured homes with terms of up to 30 years and loans that offer low down payments and loosened credit restrictions. FHA loans are for primary residences.
VA loans for manufactured housing are available to qualified veterans, spouses, and other beneficiaries for primary homes. As with any government-backed loans, those eligible for VA loans apply through private lenders. VA loans have funding fees from about 1.4 to 3.6% of the purchase price.
Low Money Down Mobile Home Financing Options
If you're looking for a loan on a mobile home in Arizona, several low-money down options are available, including:
Arizona VA Loans: These loans for eligible military veterans offer 100% financing options. These loans are earmarked for veterans specifically, though some active-duty military personnel and surviving spouses of deceased veterans may also qualify.
Arizona FHA Loans: Arizona FHA loan programs are suitable for a variety of home financing needs. These are loans backed by the Federal Housing Administration.
Some of the advantages of the Arizona FHA specialty 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 Loans.
Arizona Chattel Loans: Chattel loans are unique in this respect, as most other loans that you can obtain for a manufactured home are also available for site-built homes in one form or another.
What Are the Steps to Securing Financing for a Manufactured Home?
Once you've chosen the type of housing and the kind of financing that works best for you, as well as what you're seeking to finance — the home only or the home plus improvement or land — the next step is to prepare to qualify for financing.
There are a few steps that will help you on the road to homeownership:
- Check your credit report and credit score. Ensure there aren't any unexpected items in your credit report, which lists your accounts, balances and limits, payment history, public records, and personal information. The three major bureaus offer free reports once a year.
- Review your income and budget to make sure you can record a house payment.
- Learn about the type of loan you're seeking since some may require additional work to qualify.
- Select a lender that specializes in financing manufactured and modular housing.
- Choose a real estate agent or sales representative who will connect you with the home that meets your needs.
Like manufactured and modular housing, loans also come in many forms and sizes. Contact Cascade to speak with a manufactured home loan specialist, who will help you find the best option for your manufactured home in Arizona. While not all lenders finance and are skilled in manufactured and modular housing, Cascade specializes in financing this affordable and flexible housing. It is experienced in handling numerous types of home loans. We proudly serve the Phoneix area along with all of Arizona. Gather your financial information, review your finances, and then become prequalified through Cascade. You can reach us at 877-869-7082 or via our secure online messaging service.