Essential Facts for Purchasing a Pre-made Residential Property

In the realm of housing, manufactured homes have gained significant popularity due to their affordability and versatility. These homes, constructed in factories according to the U.S. Department of Housing and Urban Development (HUD) standards, offer a range of styles and floor plans.

The term "mobile home" technically describes a factory-constructed home built before June 15, 1976. Since then, manufactured homes have come a long way, meeting higher standards for quality, safety, and durability. They are built after June 15, 1976, and are identified by a red certification label, or HUD tag, to show they were constructed according to the latest federal safety standards.

When it comes to size, manufactured homes come in various categories. Common sizes include single section (about 500 to 1,400 square feet), double section (about 1,000 to 2,200 square feet), and triple section (about 2,000 to 3,000 square feet or more).

Popular locations for a manufactured home include being by itself on owned land, as a second home on your (or someone else's) owned land, or in a manufactured home community. Sections of modular homes, or modules, are transported to home sites, then assembled by local contractors and placed on permanent foundations.

When buying a manufactured home, it's essential to remember that the in-house financing at the dealer isn't your only option. You'll save money if you compare offers from at least three mortgage lenders.

Mortgage loans are available for manufactured homes from various partners such as NBKC, New American Funding, GO Mortgage, Rate, Rocket Mortgage, Veterans United, and FourLeaf Federal Credit Union. NerdWallet has rated these institutions, with First Federal Bank receiving 4.5 stars, GO Mortgage 4.0, Rate 5.0, NBKC 4.5, Rocket Mortgage 4.5, and FourLeaf Federal Credit Union 4.5. Figure was rated 4.0 by NerdWallet.

Government-backed mortgages, including those from the Federal Housing Administration, U.S. Departments of Agriculture, and Veterans Affairs, are available for new manufactured homes. These home loans feature low down payment requirements and are issued by private lenders. For instance, FHA Title I loans can be used to buy or refinance a manufactured home, lot, or both. The borrower does not have to own the land.

Two conventional mortgages designed specifically for manufactured homes that have features typical of site-built homes are the Fannie Mae MH Advantage and the Freddie Mac ChoiceHome mortgage. Both have down payment requirements as low as 3%.

It's worth noting that modular homes, while factory-built, are constructed according to local and state building codes like site-built single-family homes. This ensures that they meet the same safety and quality standards as traditionally built homes.

In conclusion, manufactured homes offer an affordable and flexible housing solution with a variety of styles, sizes, and financing options. When considering a manufactured home, it's crucial to compare financing options and ensure the home meets the necessary safety and quality standards.