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Financing manufactured homes can be a challenge to especially if you have less than 20% down payment because of the issue of mortgage insurance not insuring a manufactured home, no matter what the strength of the borrower. However, FHA will insure a mortgage loan on a manufactured home with as little as 3.5% down. That is why an FHA mortgage loan is my first choice for financing a manufactured home in the Eugene/Springfield Oregon area.

There are a few other items of note with FHA mortgage loans and manufactured homes:

1. The home must have been built after June 15, 1976. This is when the HUD standards for construction came into existence.
2. The home must be on a concrete foundation and have tie downs installed prior to financing. To determine this, a certified engineer must inspect the home and make any recommendations. Believe it or not, foundation and tie downs can be retrofitted for a fairly reasonable fee, at least in the Eugene/Springfield area.
3. The home can be either a single wide or double/triple wide as long as it meets the other requirements.
4. The home CANNOT be in a flood plain.
5. The home CANNOT have been moved from its original set up other than the dealership.
6. It is extremely difficult to finance a manufactured home that has been added on to.
7. Very few wholesale lenders will accept manufactured homes for conventional or government loans.
8. You can use the FHA203k loan with a manufactured home.

FHA also allows 85% loan to value cash out refinances on manufactured homes. Mortgage Insurance, both up front and monthly are required, regardless of the loan to value on a 30 year loan. 15 year loans under 90% loan to value do no require monthly mortgage insurance payments. If monthly mortgage insurance is required, it will go away when reaching 78% loan to value or 5 years, whichever is longer.

This home probably could not get FHA financing:

Questions about manufactured home? Give me a call for anything in Oregon, Washington or California. You can reach me at: 541-342-7576/541-221-3455 Cell or eugeneloanguy@gmail.com. I am here to help you with your mortgage questions and concerns.