Can you get financing on a modular home?

[Quiver0f10]

We are a ways away from being able to buy, but I am wondering if we can get conventional financing if we purchase a modular home? Thanks!

[stonecypher]

Here's a quote from a site with lots of great info on lending practices:

"Some lenders still don't want to touch them, but it's pretty easy to find lenders that will, and on the same terms as they do any other property, so the lenders who still will not lend on modular properties are hurting no one but themselves by dealing themselves out of possible business."

You might want to print out the essay to show to some local bankers and credit unions when you're ready to shop around:

http://www.searchlightcrusade.net/20...and-siteb.html

Hope this gives you some ideas!

[agmantoo]

Warren Buffet now has control of the old Oakwood manufactured homes business. They are doing business under the name Vanderbilt Mortgage and Finance. They will tote the note themselves provided you have a decent chance of making the payments.

[Terri]

Where I live, if the mobile homes are on a foundation you can get a mortgage.

Also, I bet a company that SELLS mobile homes can point you in the right direction.

[Quiver0f10]

Thanks for the info!

[tiogacounty]

First of all, be darn sure you know the difference between a modular home and a manufactured home. A modular, here in the Northeast, is a stick built home, built in sections, in a factory. They have a solid reputation, as they have been around for decades, and central Pa. is home to dozens of factorys. They go on permanent foundations and they are no different than having one built on site. They finance the same, they look the same. A manufactured home is nothing but a trailer. It comes on a steel frame, it has a vehicle title and it typically is a depreciating liability, not an asset. In these parts you can get a modest modular home for the same cost as a new double wide trailer. So, there is little incentive to buy trailers. I wouldn't hesitate to buy a cheap used double, or single wide, if I needed affordable housing. As for financing a new one? Never, ever. I have seen too many folks end up in trouble with a 20 year mortgage on a trailer that falls apart before it's paid off. BTW, the "modular, manufactured, house trailer" financing industry has some of the sleaziest scum on the planet employed. My little brother was a fresh scrubbed college grad who went to work for one of these outfits. He quit a few months later. Everybody in the organization was a con artist. Six months later, my bro. was the only employee that hadn't been charged by the FBI. Many did federal time. BE CAREFUL, get a lawyer, and don't sign anything until it is reviewed and approved by your lawyer.

[tiogacounty]

Originally Posted by stonecypher

Here's a quote from a site with lots of great info on lending practices:

"Some lenders still don't want to touch them, but it's pretty easy to find lenders that will, and on the same terms as they do any other property, so the lenders who still will not lend on modular properties are hurting no one but themselves by dealing themselves out of possible business."

You might want to print out the essay to show to some local bankers and credit unions when you're ready to shop around:

http://www.searchlightcrusade.net/20...and-siteb.html

Hope this gives you some ideas!

If you change a few words here, you describe a lot of the friction between old fashioned local banks, credit unions, etc... and the global banking monster roughly two years ago. The old school, "we hold our own paper" folks elected to avoid all the wonderful products that the lending industry pushed. NINJAS, 80/20's, interest only, ARM's etc.... Now the world economy is collapsing due to stupidity, greed and irresponsible risk taking, and the old school locals are doing just fine. I think you will find that a lot of stable, old school lenders feel the same way about lending on trailers. Lots of risk, depreciating assets, and a pool of less than prime buyers. I don't think these guys lose sleep over passing up on this "opportunity", nor will they be swayed by any "essays" clipped off the net.

[Quiver0f10]

Originally Posted by tiogacounty

First of all, be darn sure you know the difference between a modular home and a manufactured home. A modular, here in the Northeast, is a stick built home, built in sections, in a factory. They have a solid reputation, as they have been around for decades, and central Pa. is home to dozens of factorys. They go on permanent foundations and they are no different than having one built on site. They finance the same, they look the same. A manufactured home is nothing but a trailer. It comes on a steel frame, it has a vehicle title and it typically is a depreciating liability, not an asset. In these parts you can get a modest modular home for the same cost as a new double wide trailer. So, there is little incentive to buy trailers. I wouldn't hesitate to buy a cheap used double, or single wide, if I needed affordable housing. As for financing a new one? Never, ever. I have seen too many folks end up in trouble with a 20 year mortgage on a trailer that falls apart before it's paid off. BTW, the "modular, manufactured, house trailer" financing industry has some of the sleaziest scum on the planet employed. My little brother was a fresh scrubbed college grad who went to work for one of these outfits. He quit a few months later. Everybody in the organization was a con artist. Six months later, my bro. was the only employee that hadn't been charged by the FBI. Many did federal time. BE CAREFUL, get a lawyer, and don't sign anything until it is reviewed and approved by your lawyer.

Thanks for the info, good to know.

[awayfrmitall]

You have to make sure what you are getting is a MODULAR and not a MANUFACTURED home. Manufactured homes are the ones built by fleetwood etc.

Lenders treat true modular homes just like stick-built (a reg house) in financing.

On the other hand manufactured home financing is much more difficult and even fannie mae stopped lending on them a couple years back for about a 4-6 month duration.

(I use to be in Mortgage lending)

[Sustainable Joy]

Absolutely you CAN get financing for a modular home. DH is at an appointment with the bank as I type to get the papers signed to finance our modular home! No more apartment hell for us... once it's built that is....:baby04:

[MN Gardener]

In are area I appraise modular home the same as stick built. It is a manufactured home that is different.

[foxtrapper]

I'll point out as another that there is a world of difference between modular and mobile. A true modular home is financed like any other stick-built house. A mobile home is often times financed as a motor vehicle.

[Tiffin]

tiogacountry said it all. We have finance on a "modular home." It was no problem at all getting this loan. I don't know if things would have been different if we were getting say a double wide. We wouldn't even consider one. They are probably nice cheap roof over your head but not a good investment.

[mayfinn farm]

We just moved into our modular with a 15 year mortgage back in June. I don't know if it makes a difference, but we also included our 5 acres in the mortgage.

[AJ Williams]

We moved into ours back in May. It has 9.97 acres and we had no trouble.

[Quiver0f10]

For those who bought a modular ( Not manufactored, thanks for the clarification! ) how does the price per sq ft. compare to having a house built?

[tiogacounty]

Originally Posted by Quiver0f10

For those who bought a modular ( Not manufactored, thanks for the clarification! ) how does the price per sq ft. compare to having a house built?

Too many variables to give a decent answer. They are just like stick houses. You can have your local builder build you the cheapest house possible, or a palace. Modulars are the same. I have one with all hardwood trim, Anderson windows, a steep roof pitch and a giant kitchen. It was a lot more expensive than the basic model the factory offered. It was also $18/sq.ft. cheaper than having it built by a local builder.

[Quiver0f10]

Originally Posted by tiogacounty

Too many variables to give a decent answer. They are just like stick houses. You can have your local builder build you the cheapest house possible, or a palace. Modulars are the same. I have one with all hardwood trim, Anderson windows, a steep roof pitch and a giant kitchen. It was a lot more expensive than the basic model the factory offered. It was also $18/sq.ft. cheaper than having it built by a local builder.

Thanks again.

[pookiethebear]

Originally Posted by tiogacounty

First of all, be darn sure you know the difference between a modular home and a manufactured home. A modular, here in the Northeast, is a stick built home, built in sections, in a factory. They have a solid reputation, as they have been around for decades, and central Pa. is home to dozens of factorys. They go on permanent foundations and they are no different than having one built on site. They finance the same, they look the same. A manufactured home is nothing but a trailer. It comes on a steel frame, it has a vehicle title and it typically is a depreciating liability, not an asset. In these parts you can get a modest modular home for the same cost as a new double wide trailer. So, there is little incentive to buy trailers. I wouldn't hesitate to buy a cheap used double, or single wide, if I needed affordable housing. As for financing a new one? Never, ever. I have seen too many folks end up in trouble with a 20 year mortgage on a trailer that falls apart before it's paid off. BTW, the "modular, manufactured, house trailer" financing industry has some of the sleaziest scum on the planet employed. My little brother was a fresh scrubbed college grad who went to work for one of these outfits. He quit a few months later. Everybody in the organization was a con artist. Six months later, my bro. was the only employee that hadn't been charged by the FBI. Many did federal time. BE CAREFUL, get a lawyer, and don't sign anything until it is reviewed and approved by your lawyer.

OK I have to clear some of this up..... I have first had experience here in this area. I built/bought a double wide trailer and put it on a full foundation. It has normal financing and we have 5.2% for 30 years. Yes it does currently have a 'title' but once the mortgage is paid the title gets rewritten as a DEED. This house does indeed appreciate, since it is on a full foundation. If we sell after it is paid off we can leaglly sell it as a ranch HOUSE.

Modular home and double wides are build to different building codes. DW are built to stricter codes than modulars. I researched it for a long time before we went the route we did. Modular homes do not have the metal Ibeams underneath. For transportaion they have to be put on a flat bed truck and hauled to the site. DWs have attachable/detachable axles and the IBeam understructure. Once a DW is placed on a foundation there is no way to know it is a DW unless you go to the basement and see the IBeam structure.

I looked into getting our floor plan in MH vs the DW, and it was going to cost over 50,000 more to have the exact thing built as a modular, instead of the DW. We took the DW.

As stated I have a 30 yer mortgage at 5.2%. It is on a superior wall full foundation. My house is 76x80, has drywall throughout the entire house, solid oak cabinets, 50 gal hot water heater, 2x6 joists, extra insulation, and other upgrades. My DW is a HOUSE. It is built stronger and better than many stick builts out there. They joked around when we were building saying yeah, what other home is built to withstand being flowen down the interstate at 75 mpg. Which is true, and handy as it is always super windy where we live.

I have no doubt that we could sell our place now for at least a 50k profit....even this this crapy market. So don't let anyone tell yo DW on a full fountation do not appreciate. There is still a stigma that DWs are junk. They are not. Finding financing can be difficult in some areas. Since out house was so out of the norm of DW (size and extras) we did have difficulty finding comps in the area. That, and the fact that no one sells their home where we bought land. We found financing and we are just fine with everything.

[perennial]

We have an modular home - cape cod style - we LOVE it. And, yes
we do have a mortgage so you can get financing.