This type of financing can put mobile home ownership within reach for many

Marguerita is a Certified Financial Planner (CFP), Chartered Retirement Planning Counselor (CRPC), Retirement Income Certified Professional (RICP), and a Chartered Socially Responsible Investing Counselor (CSRIC). She has been working in the financial planning industry for over 20 years and spends her days helping her clients gain clarity, confidence, and control over their financial lives.

Despite the modest cost of a manufactured home, it can be harder to qualify for a mortgage for one of these houses. Manufactured homes, also commonly referred to as mobile homes, are built off-site and affixed to a permanent chassis. Fewer lenders are in the business of providing loans for manufactured homes. As a result, would-be homeowners simply don’t have as many financing options.

Fortunately, those interested in a manufactured home have some options if they don’t meet conventional mortgage standards. One is a Federal Housing Administration (FHA) loan, which can be used to cover the home itself, a suitable lot to build it on, or both.

Key Takeaways:

• An FHA loan is payday loan Lisman an option for those seeking to buy a manufactured home who cannot qualify for a conventional mortgage.
• The government insures an FHA mortgage to protect the lender in case of default.
• FHA loans require homeowners to pay an upfront and annual premium on top of the typical loan amount.

How an FHA Manufactured Home Loan Works

The FHA has two loan programs for manufactured homes?-one for borrowers who own the land that the home is on and another for homes located in a mobile home park.

With an FHA mortgage, the government insures a loan provided by an approved private lender. Continue reading →