Manufactured homes have come a long way over the last few decades as viable alternatives to traditional “stick-built” homes. These properties give Houston residents a beautiful place to call home or raise a family at a more affordable rate. However, many people wonder whether they can apply for a mortgage on these properties, and it’s a great question to ask if you’re weighing your options in Texas.

Can you get a mortgage on a manufactured home? Below is everything you need to know about obtaining mortgages on manufactured homes. And if you’re searching for the best mortgage lenders in Houston, Texas, contact the Champions Mortgage team—some professional guidance makes this search a lot easier.

What Is a Manufactured Home?

Manufactured homes, also called mobile homes, are residential properties that are completed in their entirety in a factory. These manufactured structures comply with the federal HUD codes to give Houston residents a more affordable living option when a traditional home is beyond their means. A manufacturer transports the home on a steel chassis to its permanent destination.

Homebuyers select from three manufactured home floor plans::

• Single-wide
• Double-wide
• Triple-wide

These homes have all the amenities to live comfortably and are perfect for new families looking to start their next chapter in life.

Are Mortgages Available for Manufactured Homes?

So, can you get a mortgage on a manufactured home in Houston, Texas? Absolutely! Though, the home must meet a few standards to qualify for a mortgage.

For instance, before you can obtain a manufactured home mortgage, you need one of the following:

• Own the lot on which to place the manufactured home
• Have an existing “stick-built” traditional home or lot
• Lease the land where you decide to place the home

A construction-to-permanent loan allows you to purchase a manufactured home and the land simultaneously. These one-time closing loans combine the home’s construction process and the land costs as well as the permanent mortgage, making it single closing to save money and time.

Financing Options for Manufactured Homes

Manufactured home owners have several financing options available to them. However, the home must meet the following requirements for the owner to qualify for a loan:

• At least 12 feet wide and 400 square feet
• Secured to a permanent foundation
• Include basic living features like sanitary facilities, dining areas, and bedrooms

If the home doesn’t meet these requirements, it’s considered personal property, not real estate.

The owner must also have an adequate credit score to qualify for the mortgage loan. Although acceptable credit scores may vary, Investopedia recommends around 670 for prime rates. Below 620 will typically draw subprime rates.

If you meet all the required criteria, you can look through the following financing options:

Conventional Loan

If the manufactured home meets the construction, design, and energy standards of a traditional home, a lender like Fannie Mae will offer products like the MH Advantage loan. It comes with a 30-year term and features down payments as low as 3%. Freddie Mac also offers loans that provide fixed-rate mortgages for:

• 15 years
• 20 years
• 30 years

These lenders also have adjustable-rate mortgages with 3% down payments. However, if you have a terrific credit score, you may want to look into options like the CHOICEHome program (with a 5% down payment). 

The homeowner can use these conventional loan types for secondary and primary homes.

Government-Backed Loans

USDA, VA, and FHA loans may also be available for manufactured homes. They’re typically more flexible than conventional loans.

FHA Title I Loans

Can you get a mortgage on a manufactured home with FHA Title I loans? Yes, they cover primary residences, typically within manufactured home parks or communities. The homeowner must show a signed lease for the lot with the initial terms lasting three years or longer.

FHA Title II Loans

FHA Title II loans are strictly for primary homes. They finance the land as well as the residence. Down payments for these loans start at 3.5%. 

Leasing properties don’t qualify for FHA Title II loans.

VA Loans

Military veterans can obtain a VA loan that doesn’t require any down payment. However, they have much shorter loan terms (15 to 25 years), requiring homeowners to commit to higher monthly repayments. It helps homeowners pay down their debt faster, which is appealing to some people.

In terms of administration, VA loans will require an affidavit of affixture to prove the home is real property. Qualified homeowners can also incorporate their VA funding fee into their loan balance.

USDA Loans

USDA loans also allow manufactured home owners to finance their residences without a down payment. That said, the home must have at least a double-wide floor plan and be brand-new to qualify. These loans also require specific income restrictions and the home to be in a region that matches the USDA population prerequisites.

Additional Financing Options for Manufactured Homes

If you can’t obtain any of the above loan types, why not look into a personal loan or financing through the manufactured residence’s dealer? Chattel loans are also available to qualified homeowners as specialized loans for costly vehicles like planes, farming equipment, and manufactured homes. These loans typically have higher rates but feature less paperwork during closing. 

Before committing to a mortgage arrangement, be sure to assess each loan type and your finances to determine which one works best for your budget and needs. If you need personal loans or other options for your newly manufactured home in Houston, Texas, you can also contact Champions Mortgage to find the perfect mortgage while keeping your budget in mind.

Contact Champions Mortgage for Outstanding Manufactured Home Mortgages in Houston, Texas

Can you get a mortgage on a manufactured home that isn’t manufactured yet? Whatever your situation, the Champions Mortgage team can take you through various types of mortgage loans while making any subsequent application process simple and stress-free.

Give Champions Mortgage a call at (281) 727-2500 today to see what our finance experts can do for you in Houston, Texas, and the surrounding areas!