Spring is one of the most popular times of year to shop for a home, as weather improves and families start looking at listings so they can purchase a home and get settled before the new school year begins in late summer. Others take advantage of this busy home-buying season to sell so they can downsize, relocate or find a forever home for retirement.

As a leader in the manufactured and mobile home industry for more than 25 years, HomeQuest likes to prepare our clients before the home-buying process begins, which includes educating and guiding them on financing.  

If you’re looking to purchase a resale or new manufactured home, here are a few key components to getting into home-ownership and what you should know about financing your home before completing an application. 

Borrowers should have: 

• Sufficient cash to make the minimum required down payment 

• Proof of income to make the loan payments and meet other living expenses 

• Qualifying credit score and history 

• A property where the manufactured home will be placed. This could be a rented lot in a manufactured home community – if the community and lease agreement meet FHA guidelines – or a private property owned or leased by the borrower. 

FHA requirements also include that the borrower must occupy the manufactured home as their primary residence. For loan approval, most lenders also require that a manufactured home: 

• Meet the Model Manufactured Home Installation Standards 

• Carry a one-year manufacturer’s warranty if the unit is new 

• Be installed on a homesite that meets established local standards for site suitability and has adequate water supply and sewage disposal facilities available 

Manufactured home loan interest rates are fixed for the entire term of the loan, which is typically 20 years. Longer terms are available for loans covering a lot and multi-section manufactured homes. When borrowing for a home that will be on a leased lot, HUD requires the lessor to provide the homeowner with an initial lease term of three years, and advance written notice of at least 180 days if the lease is to be terminated. This is to protect homeowners in case the park is sold.

This is just a general overview of some of the requirements for financing a manufactured home. At HomeQuest, home-buying and lending specialists are always happy to answer any questions prospective buyers may have, and our team can connect clients with trusted lenders. 

HomeQuest is one of the largest manufactured home retailers in the Western U.S. Let us help you purchase or sell a mobile or manufactured home, by calling us at (866) 720-2207.