How to Refinance a Manufactured Home Loan

Many manufactured homeowners refinance their home loans to experience benefits like lower interest rates, reduced monthly payments, shorter repayment terms or consolidating debt. The process of refinancing involves paying an existing loan in full with a new loan.

At CIS Moving Home, we offer many loan options to allow homeowners to refinance their manufactured home loans with ease.

Can You Refinance a Manufactured Home Loan?

Homeowners can refinance their manufactured home loans, but many lenders require that the home:

  • Be on land the homeowners own.
  • Be attached to a permanent foundation.
  • Has a real property or real estate title.
  • Be built after June 15, 1976.
  • Does not have a towing hitch or wheels and is at least 400 square feet.
  • Complies with the United States Department of Housing and Urban Development’s building standards.

Refinancing Manufactured Homes

Before refinancing your manufactured home loan, you may want to consider closing costs. Refinancing your manufactured home loan is only beneficial if you save enough over the life span of the new loan to offset the costs. Most refinancing loans offer borrowers lower interest rates or favorable repayment terms to help lower monthly payments or create a new payment schedule.

Additional Options if You Don’t Qualify

Many lending companies like CIS Moving Home offer refinancing solutions that meet the various credit and financing situations of borrowers. If you’re unable to qualify for a refinance loan with more favorable conditions and terms than your original loan, you have options — such as improving your credit score before reapplying or exploring a different type of loan.

How to Refinance a Manufactured Home Loan

While it is possible to refinance a manufactured home, you may have to complete additional steps to ensure you’re choosing the best loan program for your needs. Here’s what you need to do to refinance a mobile home and start saving money.

1. Determine the Type of Manufactured Home You Own

The term mobile home is often interchangeably used with manufactured and modular homes. However, there is a difference between these three types of homes:

  • Manufactured homes: Homes built in a factory and moved to a site the homeowner owns or rents.
  • Mobile homes: Homes built before June 15, 1976, that have axles with wheels that a contractor removes before setting the home on rented land.
  • Modular homes: Homes built in a controlled environment that meet specific building standards.

2. Decide if Your Home Is Real Property

Determining whether your home is real or personal property will give you opportunities for different financing options.

Real property is a manufactured home attached to land you own, while personal property or a chattel is a mobile home on leased land.

3. Choose the Type of Refinancing You Will Need for Your Manufactured Home

If you own a manufactured home on a permanent foundation or you want to refinance your home to convert it to real property, you have two refinancing options:

  1. Limited cash-out refinance: With this type of refinancing, borrowers can pay off a current mortgage, closing costs and construction fees.
  2. Cash-out refinance: If a borrower has owned their current home for at least 12 months, they can take out a loan in a greater amount than they currently owe and keep the difference.

4. Shop Loan Programs Available for Your Manufactured Home Refinance

The different loan programs that allow borrowers to refinance manufactured homes include:

  • Conventional loans: Fannie Mae and Freddie Mac loans help borrowers with good credit and low debt-to-income ratios.
  • FHA loans: Federal Housing Administration (FHA) loans are a flexible lending option for borrowers with low credit scores and higher debt ratios.
  • FHA Title I loans: FHA Title I loans help low- to moderate-income homeowners that don’t qualify for home equity loans refinance home improvements.
  • VA loans: The United States Department of Veterans Affairs guarantees a portion of loans for active-duty and veteran military service members.
  • USDA loans: The United States Department of Agriculture guarantees loans from USDA-approved lenders for low-income borrowers in rural areas.

5. Browse Your Options to Find the Best Manufactured Loan Rates and Terms

Before selecting your loan program to refinance your manufactured home, shop around to find the best financing option for your needs. At CIS Moving Home, we offer several loan options to help borrowers refinance.

Learn More About Manufactured Home Refinancing Options at CIS Moving Home Today

We’re here to dismiss the myth that affordable housing has to look different. Our friendly, knowledgeable team will guide you through the refinancing process from start to finish. Contact us today to learn more about our loan options!