Anyone know about FHA loan requirements? Will they loan on a Double-wide trailer?

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Its in a very nice neighborhood, country living, has 4 acres w/ it. its a 2005 Solitaire Double wide, and we really like it and want it. They are asking 69,900. Do you think the mortgage company will approve this? please help, we want to make an offer on this…

  1. Reply
    May 19, 2011 at 2:49 am

    Don’t do it. I do not think FHA will lend on that, they don’t even like doing condos. They HAVE been loosening their guidelines in order to compete with subprime lenders, however even subprime won’t touch a mobile. Generally for that kind of loan you will need anywhere from 20-30% down, MUCH higher than what is required for a stick built house, which you can obviously do for 100% LTV. Mobiles are considered very poor collateral and it is much worth your while to wait and buy stick built home at a later date than to invest so much in something that is guaranteed to depreciate (if it sets on its own land the land itself WILL appreciate, but the structure is practically worthless). You would basically have to accept that you will live in it forever or very likely take a loss upon selling it, that you will have to put down a fat wad of cash, and then MAKE SURE the title is properly eliminated, since until that happens the trailer is basically considered more like a car and not a house, thus you can’t get a mortgage on it.

    Honestly, I just really strongly recommend you do not buy a trailer.

  2. Reply
    May 19, 2011 at 3:11 am

    Financing Manufactured (Mobile) Homes

    Under the Title I program, approved lenders make loans from their own funds to eligible borrowers to finance the purchase of a manufactured home and/or lot, and FHA insures the lender against loss if the borrower defaults. Credit is granted based upon the applicant’s credit history and ability to repay the loan in regular monthly installments.

    Title I manufactured home loans are not Government loans or grants, and are not low interest rate loans. The interest rate is fixed and is generally based upon the prevailing market rate in the area at the time the loan is made. FHA does not lend money.

    Purpose of the Loan

    A Title I loan may be used for the purchase or refinancing of a manufactured home, a developed lot on which to place a manufactured home, or a manufactured home and lot in combination. The home must be used as the principal residence of the borrowers.

    Maximum Loan Amount

    manufactured home only – $ 48,600

    manufactured home lot – $ 16,200

    manufactured home & lot – $ 64,800

    The dollar limits for lot loans and combination loans may be increased up to 85 percent in designated high-cost areas. For further information on high-cost area limits, contact the local HUD field office.

    Maximum Loan Term

    20 years for a loan on a manufactured home or on a single-section manufactured home and lot.

    15 years for a manufactured home lot loan.

    25 years for a loan on a multi-section manufactured home and lot.

    Manufactured homes are usually purchased through dealers or retailers that sell the homes. The names of lenders in your area which specialize in financing manufactured homes can be obtained from local retailers. These retailers are listed in the yellow pages of your telephone directory. They have the required application forms. FHA neither loans money nor gives grants to purchase homes. Also, manufactured homes must comply with the National Manufactured Home Construction and Safety Standards. The approved FHA lender can explain the mortgage credit and income eligibility requirements to qualify for a loan.

    Eligible Borrowers Must:

    Have sufficient funds on hand to make the minimum required downpayment of 5 percent.

    Be able to demonstrate that they have adequate income to make the payments on the loan and meet their other expenses.

    Intend to use the manufactured home as their principal residence.

    Have a suitable site on which to place the manufactured home. The home may be placed on a rental site in manufactured home park, or on an individual homesite owned or leased by the borrowers.

    An Eligible Manufactured Home Must:

    Meet the National Manufactured Home Construction and Safety Standards.

    Carry a one-year manufacturer’s warranty if it is a new manufactured home.

    Be installed on a homesite that meets established local standards for site suitability and has adequate water supply and sewage disposal facilities available.$ ^@http%3A%2F%2Fwww%2Ehud%2Egov%2Foffices%2Fhsg%2Fsfh%2Ftitle%2Frepair%2Ecfm&portnum=80

    I’ve don a lot of Manufactor Homes,

    good luck

  3. Reply
    May 19, 2011 at 3:13 am

    I just bought a double wide, 2128 sq. ft. home on .84 acres of land. You need 5% down, 3 months of taxes, 15 months of insurance and closing costs. My interest rate is 6.5%. I got a FHA loan!

    Oh yeah, go on and pay $ 30. to get a value on your home before making a bid so you don’t over pay on your home. Check out the taxes on the land and get a rough estimate on the value too!

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