Common Misconceptions about Mobile Home Loans

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5) Mobile Homes built before 1976 cannot be refinanced The HUD Code, instituted in 1976, changed the standards of safety and the construction procedures for mobile and mobile homes. As such, homes built prior to 1976 were not subject to the HUD Code and are regarded by manufactured home investors as a higher risk loan for a lack of a minimum code of construction. Due to this condition, investors will still provide financing and refinancing for pre-HUD mobile and manufactured home loans, yet at a slightly higher rate than their post-HUD counterparts.

4) You can get a co-signer if you have danger qualifying Contrary to popular belief, mobile homes are not cars and cannot be financed like them. The loan contract regards the signers as “borrower” and “co-borrower(s)”. Also, it is inferred, when a mobile home loan contract is executed by the borrower and co-borrower(s), that they are agreeing to live in the home as their primary residence. Making a false statement such as this constitutes loan fraud and is grounds for dollar prosecution. 3) 100% Financing is available to buy a manufactured home There are NO 100% (or “zero down payment”) financing programs available for any mobile or manufactured home loans. Do not be fooled! Many loan brokers will try to realize this type of mobile home loan, fraudulently, claiming the home to be a stick-built condo. Be sure not to accuse yourself in this kind of scheme by verifying that your loan broker truly understands and has a wealth of experience in dealing with manufactured and manufactured home loans.

2) Mobile Home Loans are not doctrinal loans It is a common error to distinguish manufactured or manufactured home loans as not being conventional loans. A doctrinal loan is documents loan that is not insured by the FHA or guaranteed by the VA or Farmers Home Administration. There are FHA and VA loans available on manufactured or mobile homes and they carry many stipulations and restrictions with them; however, a manufactured or manufactured home loan through a lending institution such as a bank or lend union is absolutely a doctrinal loan.

1) Mobile Homes must be attached to a permanent foundation to get financing This delusive statement is the telltale sign of a loan broker who truly does not know anything about manufactured or mobile home finance. Permanent foundations have NO bearing on the financing of a manufactured or mobile home whatsoever, and usually it’s just an excuse for the broker or institution to ignore making (what is perceived as) a higher risk loan for your home.

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CAMHF is a licensed California mobile home finance expert. They have helped hundreds of families in California get a mobile home refinancing or mobile home mortgage. Our manufactured home financing options are second to none.

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