Manufactured and modular housing offers many affordable options for Florida residents. Also called mobile homes, manufactured housing is budget-friendly and offers many flexible options. Modular housing is also factory-built, but it's assembled on site on a foundation or slab, offering quick construction. Both types of factory-built housing offer high quality, as they're built to the latest code requirements.
Financing manufactured and modular housing can be easier than financing traditional housing, with credit requirements loosened and down payments being low. Closing a loan is also faster and has fewer steps. Many options are available to suit your needs, including loans for a manufactured home only, or loans that finance land, foundations, garages, and other improvements. Chattel loans on a manufactured home by itself are popular and offer flexibility in where the home is located or relocated. Find out more about how Florida residents can benefit from manufactured and modular housing financing options.
Should I Consider a Chattel Loan?
Chattel loans that cover the housing only and not the land are easier and faster to finance, letting manufactured home buyers get their homes in as little as 30 days. Buying a home with the land takes longer, with appraisals and site preparations needed. Since only the home is financed, it may be moved, and the mortgage follows the property much like a loan on a vehicle. Chattel loans can also be used to refinance a manufactured home.
Chattel loan applicants can expedite the loan closing by providing documentation promptly and ensuring their credit and budgets are in good shape. There aren't extra steps like title company paperwork, inspections, and appraisals that extend the time to close for conventional financing. Interest can be higher on chattel loans since there isn't land to back the loan. Loans are smaller and are paid off faster, though.
The process for qualifying for a manufactured housing loan is similar to that of a conventional mortgage, involving credit and income checks, down payment requirements, and the option of using special programs like VA and FHA loans.
Is Financing Assistance Available to Florida Residents?
Manufactured and modular housing can be financed to meet your needs, with chattel mortgages for the house only or financing options for land and improvements. Government-backed FHA (Federal Housing Administration) and VA (Veterans Administration) loans are available for those who plan to finance the home and land.
In addition to what is financed, how it is financed is another important consideration. Financing that isn't government-backed is available for those who don't qualify, prefer this type of financing, or aren't able to comply with all the restrictions associated with FHA and VA loans.
While both FHA and VA loans offer government backing that reduces interest rates and fees while loosening credit restrictions, FHA and VA loan loans have different requirements.
FHA loans offer low down payments, loosened credit requirements, and other benefits like the ability to receive a gift for the down payment. The loans are offered in every county nationwide. There aren't income limits for qualifying, but loans sizes are capped.
Veterans and eligible family members may qualify for a VA home loan for modular or manufactured housing. VA home loans are available for owner-occupied manufactured and modular homes plus land or other improvements like garages.
Like other government-backed loans, VA home loans are offered through private lenders like Cascade. VA loans may cover up to 95% of the cost of a manufactured home, offering lower interest rates and eliminating the need for mortgage insurance. VA loans do, however, have a funding fee of about 1.4% to 3.6% of the purchase price of the home. This fee my be included in the loan amount and is generally not an out-of-pocket expense. VA loan applicants need a Certificate of Eligibility and must live in the home. The VA website offers assistance.
What Steps Are Involved in Approval?
When you've decided on the type of housing, any add-ons like land and a garage, and the type of financing that works best for your situation, it's time to get approved. Approval steps include:
- Check your credit report and credit score to make sure there aren't any issues or errors. The three major credit reporting bureaus offer free reports once a year.
- Review your income from all sources, as well as your monthly bills and debt.
- Learn about the type of financing you are seeking — whether it is a loan for the home only or financing the land and other improvements to it. Check the terms, including loan limits, funding fees, origination fees, closing costs, interest rates, and credit score requirements. Consider if you are qualified for special financings like FHA, VA, or a first-time homebuyers program for your Florida county or city.
- Select a lender that specializes in financing manufactured and modular housing.
- Choose a real estate agent or sales representative who will be able to help you find a home (and possibly land for it) and begin home shopping. It is best to find an agent that is familiar with manufactured homes.
Loans for modular and manufactured housing provide many options to meet homeowners' needs. Contact Cascade to speak with a manufactured home loan specialist who will be able to help you find the best option for your manufactured or modular home in Florida. We proudly serve the areas of Miami and Tallahassee as well. While not all lenders provide loans for manufactured and modular housing, Cascade specializes in helping people find financing for this affordable and flexible housing, and it is experienced in handling numerous types of home loans. Gather your financial information, review your finances, and then become prequalified through Cascade. Contact us by phone at 877-869-7082 today! You'll be on the road toward homeownership.