The basic requirements for manufactured home loans can vary depending on the lender and the specific loan program. However, here are some common requirements you can expect:
Manufactured Home Type: The home must be classified as a manufactured home and meet the standards set by the Department of Housing and Urban Development (HUD) or other relevant building codes.
Property Ownership: You must own the land where the manufactured home will be located. In some cases, leased land may be acceptable, but manufactured home lenders generally prefer borrowers who own the land.
Down Payment: You will typically need to make a down payment, which can range from 5% to 20% of the purchase price, depending on the lender and loan program. Some government-backed loan programs, such as FHA loans, may offer lower down payment options.
Credit Score: Lenders will assess your creditworthiness based on your credit score and credit history. A higher credit score generally improves your chances of qualifying for a loan and may result in more favorable interest rates and terms.
Income and Employment: You’ll need to demonstrate a stable income and employment history. Manufactured home loan lenders will typically require proof of income, such as pay stubs, tax returns, or bank statements, to assess your ability to repay the loan.
Insurance: You’ll likely be required to obtain homeowners insurance coverage for the manufactured home to protect the lender’s interests.