FHA Manufactured Home Loans

An FHA loan is a mortgage loan from the Federal Housing Administration that provides financing for applicants to purchase a manufactured home. Unlike many conventional loan programs, FHA loans do not have income restrictions. Contact CIS Moving Home today to learn how we can help you move into the manufactured home of your dreams.

The Benefits of FHA Loans for Manufactured Homes

From credit advantages to helping homeowners save money, FHA loans for manufactured homes have many benefits:

  • Easier credit qualifications
  • Shorter wait times after a negative credit event
  • Low down payment options
  • Lenient gift fund policy
  • The option to finance some closing costs
  • The ability for sellers to pay closing costs
  • Reduced interest rates

Features and Requirements

FHA loans are an excellent option for financing the purchase of a manufactured home, the lot to build a manufactured home upon or the land and the home. Borrowers can also use an FHA loan to place a manufactured home on land they already own or in a manufactured home park.

If you’re only purchasing a home with an FHA loan, these are the minimum requirements:

  • Your home must meet minimum standards for safety, security and structural integrity set by the FHA.
  • You must move in within 60 days of the closing.
  • The property you purchase must be your primary residence.

Borrowers who are using an FHA loan to purchase a manufactured home and land will have a few additional requirements:

  • The contractor must provide invoices for construction-cost itemization.
  • The foundation of your home must meet specific standards.
  • Your home must convert to real property and be subject to real estate taxes.

How Are FHA Loans Different From Traditional Mortgages?

Many home buyers assume FHA loans are for first-time home buyers and traditional mortgages are for established buyers. However, that’s not always true!

The main difference is that FHA loans are insured by the Federal Housing Administration, while traditional, or conventional mortgages aren’t insured by any federal agencies. They also differ in their minimum down payments, required credit scores, loan limits and property standards. If you’re interested in determining the right loan type for you, contact our sister company, CIS Home Loans, to get assistance from our mortgage originators.

How Do FHA Loans Work?

An FHA loan for a manufactured home operates similarly to a conventional mortgage. After qualifying and applying for a loan from an FHA-approved lender, you will receive the funds you need to purchase your manufactured home.

Who Are FHA Loans Best For?

FHA loans are ideal for low- to moderate-income homebuyers. Many first-time homebuyers benefit from the low FHA manufactured home loan rates. They are also ideal for borrowers who may not have had the time to save money for a down payment or pay all of their debts in full yet.

What Are the General Requirements?

As with other loan applications, all borrowers must have a valid Social Security number, legally reside in the United States and be of legal age to apply for a loan.

While FHA chattel loans are generally less restrictive than other loans, there are some crucial requirements to keep in mind. Applicants must have:

  • A credit score of at least 580.
  • A history of making past loan or income tax payments on time.
  • Proof of steady employment.

Another requirement is that the loan must be less than 50% of the borrower’s income.

Apply for an FHA Loan Today

Take the first step toward homeownership by contacting CIS Home Loans to learn more about FHA loans. Ready to apply for an FHA loan? Visit our sister site CIS Home Loans to start the application process today.