Be Sure to Look at all Three Ways to Obtain Manufactured Home Financing Before You Accept a Loan

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Manufactured housing is a popular alternative to Â?stickÂ? built homes today. But, manufactured home financing is a little different, so be sure to know all your alternatives before you sign for a loan that may not be the best for you.

The three major loan programs for a manufactured home are: FHA, Conventional and Equity Loans. These programs are for manufactured homes on real estate you own, or will own. Not for homes in a park where you lease the land.

If the company you call can’t do your loan, you won’t often be referred to a company that can do your loan because the loans are funded from different sources that do not interact with each other. It depends on whether the home is brand new or previously lived in as to the loan program you can get.

If you buy a brand new home, sold to you by the dealer, he can offer you some loan programs, both Government and Conventional that other loan sources do not have. But, if he can’t do the loan, he probably won’t send you to a Mortgage Broker that might help you. For instance, some dealer programs don’t offer loans on marginal credit where Mortgage Brokers do.

The Mortgage Broker has programs for financing manufactured homes that are not brand new. The Broker can offer you FHA and Conventional loans just like the dealer, but only for properties that are already standing and permanently affixed to real estate that you own or will own. If FHA proposed changes pass there may even be 100% financing available for manufactured homes.

The Mortgage Broker can offer you the third type of lending as well. This is called Equity Lending. (Hard Money Loans). The loan guidelines are only concerned with the lender equity position created through the loan. They don’t consider borrower credit. See information about at Types of Credit Allowed.

Equity loans are made by individuals and offered through mortgage companies. This is one step away from borrowing from an individual. They make short term loans of three to five years. The rates are high, and the loan to value percentage is low.

For instance, if you wanted to buy a manufactured home or just move one on to property you want to buy or already own, you might need an equity loan to get the home set-up and ready to refinance. Then you could obtain a traditional type of long term loan. Please see more information at California 433 Occupancy Certificate Information

With the equity move-on-loan you would have to put at least 10% down, based on the future value of the property when the home is completed. The future value can be used because your new home will be compared with similar homes in the immediate area that are already completed and have a known value. In that sense, the value of your home is established before it is constructed. If you have equity in the land the home will be put on, the equity is counted for you, as a credit, in the lending formula.

For additional information contact: Judy Sellens at

Sellens Real Estate Lending is a Southern California Based Real Estate Mortgage Broker offering Loan Programs for all types of Credit and all types of Properties.

The Company was started by Judith A. Sellens in Orange County in 1991. She has 40 years experience in real estate related fields. The Company Home Office is in Riverside California and is licensed by the California Department of Real Estate.

Judy Sellens

Mortgage Broker


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