Mortgage Programs
Manufactured Homes
Manufactured housing has never been more popular! GRB understands the unique requirements associated with financing manufactured homes.
Before Purchasing... Know Your Options
Manufactured housing now accounts for nearly 11% of all new housing being built in the U.S.
Financing a manufactured home – also known as a mobile home or prefabricated home – involves navigating a unique set of challenges compared to traditional stick-built homes. These challenges stem from differences in property classification, depreciation, and lending risks associated with manufactured homes.
GRB provides several financing options for prospective manufactured home buyers, including SONYMA, FHA, VA, USDA, and Conventional loans.
Purchasing Manufactured
Homes in New York State
Under New York law, title to a manufactured home is initially held in the form of a Certificate of Title issued by the New York State Department of Motor Vehicles (“NYDMV”). A person generally must apply for a Certificate of Title for a manufactured home within thirty (30) days of the transfer of the manufactured home.
In order for manufactured homes to be eligible for mortgage financing, there are specific requirements for title and liens from NYS and FANNIEMAE, as follows:
SONYMA, FHA, VA, USDA, and Conventional loan programs all have different requirements for financing manufactured homes. Please talk to a GRB Mortgage Originator to review specific lending terms and conditions for each mortgage option.
Contact Our Mortgage Team
Click the button below to fill out our ‘Contact Us’ form, and a GRB Mortgage Originator will be in touch to answer your questions!
Lending Options
Personal Loans For Manufactured Homes
One common financing option for manufactured homes is chattel loans, which treat the home as personal property rather than real estate. These loans typically come with higher interest rates and shorter terms than traditional mortgages, reflecting the higher risk for lenders. Additionally, down payment requirements for chattel loans are often higher, typically ranging from 5% to 20% of the home’s purchase price.
Lending Options
FHA Loans For Manufactured Homes
The Federal Housing Administration (FHA) offers several financing options for manufactured homes to promote homeownership opportunities for a broader range of buyers. Here are options from FHA to support financing for manufactured homes:
Title I Loans
FHA Title I loans are designed specifically for financing the purchase or refinance of manufactured homes and home improvements. These loans are offered by approved lenders and can be used for both new and existing manufactured homes. Title I loans typically have more relaxed credit requirements compared to conventional mortgages, making them accessible to borrowers with less-than-perfect credit. However, borrowers may face higher interest rates and shorter loan terms.
FHA 203(b) Loans
FHA 203(b) loans are traditional fixed-rate mortgages that can be used to finance the purchase of a manufactured home and its lot. To qualify for an FHA 203(b) loan for a manufactured home, the home must meet certain HUD requirements, including compliance with the FHA’s Manufactured Home Construction and Safety Standards (HUD Code). The home must also be classified as real estate and be affixed to a permanent foundation.
Lending Options
Conventional Loans For Manufactured Homes
For buyers seeking long-term financing with competitive rates, conventional mortgages can be an option for purchasing a manufactured home that meets certain criteria. However, eligibility for conventional mortgages may be limited by factors such as the home’s age, condition, and location.