Learn About Financing Manufactured Homes in Texas
Buying a manufactured home is one of the cheapest ways to become a homeowner. Manufactured homes tend to be the most affordable option for low-income families or for those with poor credit. Interested parties can finance a manufactured home by contacting a local dealer using the yellow pages or by searching online. Once a potential home buyer finds a dealer in their immediate area, they’ll need to get pre-approved for a Title 1 loan. Learn more about how to apply for a manufactured home loan from our manufactured housing specialists.
Getting Approved for a Loan
In order to get approved for a manufactured housing loan, the applicant will need to provide information about their financial history including their credit score, employment status, income level, and a record of their recent housing history. Lenders are focused on mitigating risk. They’re looking for applicants that have enough income and sustainability to pay off their loans in their entirety over the next 20 years. Lenders will use a variety of different factors to determine an applicant’s eligibility. The applicant’s credit score is only a part of the equation. In most cases, the applicant’s income level is the most decisive factor when it comes to getting approved for a manufactured housing loan. Every lender has their own criteria when it comes to approving candidates for a loan.
Terms of the Loan
Manufactured home loans are required by the US Department of Housing and Urban Development (HUD) to remain under a certain value. The maximum amount for a manufactured home loan is listed below:
- Manufactured home only – $69,678
- Manufactured home lot – $23,226
- Manufactured home & lot – $92,904
HUD also stipulates certain requirements for the length of the loan. The maximum length for manufactured home loans are listed below:
- 20 years for a manufactured home loan
- 15 years for a manufactured home lot loan
- 25 years for a loan on a multi-section manufactured home and lot
Finding the Right Location
Buying a manufactured home also requires finding a piece of land to put the home on. Homebuyers are not required to own the land that they wish to occupy. They can lease a private lot or rent a piece of land within a mobile or manufactured home community. HUD stipulates that the lessor provide the owner of the manufactured home with a lease of the land for at least three years. Interested homebuyers can look for available lots in their local community using the yellow pages or an online search tool.
Getting Assistance from a Professional Manufactured Home Loan Specialist
Navigating the manufactured home loan process can be a challenging venture for many families and low-income individuals. Interested homebuyers can contact a local manufactured home loan specialist for more information about getting approved for a loan. A manufactured loan specialist can also help individuals learn about their rights as consumers.