Introduction: When it comes to purchasing a home, the financing landscape extends beyond traditional houses. Manufactured homes, modular homes, and mobile homes offer unique alternatives, each with its financing considerations. Join us as we delve into the world of manufactured home financing with insights from expert Steve Schappert.
Understanding the Differences: Manufactured homes, modular homes, and mobile homes may all be considered homes, but their distinctions matter when it comes to financing. Steve Schappert breaks down the key disparities to help you navigate through the financing options available.
Manufactured Homes: Manufactured homes, built in a factory on a permanent metal frame, must adhere to the Department of Housing and Urban Development Manufactured Home Construction and Safety Standards (HUD Code) if constructed after June 15, 1976. To qualify for conventional or government loans, these homes must be attached to a permanent foundation and connected to utilities and sewage systems.
Modular Homes: Similar to site-built homes, modular homes involve manufacturing various components off-site, which are then assembled on the building site. These homes qualify for traditional financing, meeting the same building codes as their site-built counterparts.
Mobile Homes: Distinguished by their mobility, mobile homes are not eligible for traditional home loans. Classified as personal property, they may lack a permanent foundation and could be smaller than the minimum square footage required for some manufactured home loans. However, Steve Schappert sheds light on chattel loans, a financing option tailored for mobile homes, which will be explored later.
Manufactured Home Property Requirements: For a manufactured home to be eligible for a traditional mortgage, it must be classified as real property, equivalent to a site-built home. This involves removing any features that make it mobile, such as wheels, towing hitches, and axles. Proper title recording and deregistration with the state motor vehicle department are also critical considerations.
Financing Options: Steve Schappert outlines various financing options for manufactured homes, including conventional loans, VA loans, FHA loans, chattel loans, and personal loans. Each option comes with its set of criteria, ensuring flexibility for potential homebuyers.
Conclusion: While not offering investment advice, Steve Schappert emphasizes the transformative power of homeownership. Beyond the intricacies of financing, he underscores the positive impact of owning a home on communities, stability, and long-term family wealth building. Join us on this insightful journey into the world of manufactured home financing with Steve Schappert.
