| Purchasers of manufactured homes often use short | | | | should interest rates go down. If the property meets |
| term financing from a bank (for example, a five year | | | | the requirements, the loan is processed exactly like an |
| balloon note) or short term, very high interest rate | | | | ordinary FHA loan. |
| owner financing to cover the cost of setting up their | | | | If you have a manufactured home that you need to |
| new home. | | | | refinance, the first step is to check the side of the |
| Since each of these methods of financing the | | | | house for a set of HUD tags which indicate that the |
| manufactured home must be paid off in a short period | | | | home was built according to HUD standards. In order |
| of time, owners of manufactured homes should begin | | | | to qualify for FHA financing, this tag must be attached |
| looking for replacement financing as early as the end | | | | to the property, or you will have to pay to have the |
| of the first year of ownership. Only at the end of the | | | | tag number researched. |
| first year can the loan can be based on the appraised | | | | Once you know the home was built according to |
| value of the home instead of its original sales price. | | | | HUDs building code, the next step is to verify that the |
| Although FHA has fairly stringent property guidelines | | | | foundation was installed according to HUDs detailed |
| for manufactured homes, a loan officer experienced in | | | | guidelines. In order to do this, you must hire a structural |
| this area can guide borrowers through the effort with | | | | engineer to inspect the foundation. The cost for this |
| no more hassle than a traditional mortgage. The major | | | | can be added into your new mortgage. |
| advantage of an FHA loan for this purpose is that an | | | | Whether you have good credit and a balloon note at |
| FHA loan provides the best chance to take advantage | | | | the bank, while your property value is not high enough |
| of today's low mortgage rates rather than having to | | | | to qualify for a conventional 30 year fixed rate |
| use higher conventional rates with manufactured home | | | | mortgage, or you have had some credit problems and |
| rate add-ons. An FHA loan for a manufactured home | | | | are stuck with high interest rate owner financing, FHA |
| has all the same attributes as any other FHA loan, | | | | may have a solution for you. |
| including the option for streamline refinances later | | | | |